Question

demand for a particular type of battery fluctuates from one week to the the next. A study of the last six weeks provides the following demands (in dozens): 5, 5, 3, 2, 8, 10 (last week). forecast demand for next week using a three-week moving average where the weights are 3, 2, 1, (the heighest weight is for the most recent number).

Answer 1

Answer:

16

Explanation:

Given:

Demands = 5, 5, 3, 2, 8, 10

now,

since the highest weight is for the most recent number , Weights assigned will be

Demand    weight

10                3

8                 2

2                 1

Therefore,

Forecast demand = $\frac{\sum{Weight\times Demand}}{3}$

or

Forecast demand = $\frac{3\times10+2\times8+1\times2}}{3}$

or

Forecast demand = 16

Answer 2

Given the weighted we have and the requirement is to use the three-week moving average, we come up with the sales forecast by applying the formula as shown below:
(3x1 + 2x2 + 3x3) / 6 = 2.67