Download as:
Rating : ⭐⭐⭐⭐⭐
Price: $10.99
Language:EN
Pages: 4
Words: 628

You are viewing 1/3rd of the document.
Purchase the document to get full access instantly.

Immediately available after payment
Both online and downloadable
No strings attached

This because the occupancy rate has been gradually increasing over the past months

Solution

3-month moving average forecast:

August: (7 + 12 + 10) / 3 = 9.0

September: (12 + 10 + 11) / 3 = 10.7

Compute a 5-month moving average forecast of demand for June through January.

Month Wheelchair Sales

May 7

June 12

November 14

December 16

August: (8+7+12+10+11)/5 = 9.6

September: (7+12+10+11+12)/5 = 10.2

Compare the two forecasts of the 3-month and 5-month using MAD.  Which forecast method should the dealer use?

3-Month Forecast:

April 8

May 7

October 10

November 14

February 7

March 10

August 11

September 12

2.  The Big City Hospital has experienced the following occupancy rates during the past 9 months:

 

Month Occupancy Rate (%)
1 83
2 78
3 75
4 81
5 86
6 85
7 89
8 90
9 86

Forecast for month 10 = 83% + (0.2 * (78% - 83%)) = 82.6%

Forecast for month 11 = 82.6% + (0.2 * (75% - 82.6%)) = 81.2%

Forecast for month 16 = 86.0% + (0.2 * (90% - 86.0%)) = 86.2%

Compute the exponential smoothing forecast with alpha=.2 and beta=.3 (you can use the results of first part and just add beta calculation)

The three forecasts are:

Forecast 1: The occupancy rate will be 80% for the next month.

Copyright © 2009-2023 UrgentHomework.com, All right reserved.