Supply chain management strategy: estimate demand for the next 4 days using a 4-day moving average as well as simple exponential smoothing with a = 0.1.

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Supply chain management strategy

  • Estimate demand for the next 4 days using a 4-day moving average as well as simple exponential smoothing with a = 0.1. (4 marks)
  • Evaluate the MSE, MAD, MAPE, bias, and TS (i.e., the KPIs) in each case. Which of the two methods is better? Why? (3 marks)
  • Use Holt’s model to estimate the demand? Is it a better method? Why? (3 marks)