Wednesday, February 4, 2009

Operations Assignment 1: Line Chart-Moving Average vs. Exponential Smoothing


As you can see from the line chart presented, exponential smoothing is more accurate at forecasting sales when compared to the moving average. However, if you want to compare only the moving averages, it appears that using a moving average of less periods will yield a closer forecast than if you were to use a moving average over more periods. Hence MA(3) more closely resembles the actual sales than MA(6).











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