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Forecasts and actual sales of MP3 players at Just Say Music are as follows:

Month Forecast Actual Sales

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March 150 170

April 220 229

May 205 192

June 256 241

July 250 238

August 260 210

September 270 225

October 280 179

Using the Excel template Moving Average:

  1. Plot the data and provide insights about the moving average forecast.
  2. What is the forecast for November, using a three-period moving average?
  3. Compute MSE for the two- and three-period moving average models and compare your results.

2. Using the ABC spreadsheet template provided and the information provided in Chapter 12(OM², Student Edition, by Collier/Evans), perform an ABC analysis for the data provided below. Clearly explain why you classified items as A, B, or C.

Annual

Unit

Item

Usage

Cost

1

2400

$19.51

2

6200

$32.60

3

8500

$10.20

4

3200

$6.80

5

6000

$4.50

6

750

$55.70

7

8200

$3.60

8

9000

$44.90

9

5800

$35.62

10

820

$82.60

11

500

$40.50

12

2000

$15.40

13

2400

$14.60

14

6300

$35.80

15

4750

$17.30

16

2700

$51.75

17

1600

$42.90

18

1350

$25.30

19

5000

$67.00

20

1000

$125.00

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