Consider the monthly sales data of a company for last year as well as first six month data for current year. Use a three- quarter weighted moving average, Forecast the sales of company for 3rd Quarter of current year. Use Weights of 4/7, 2/7 and 1/7, giving more weight to more recent data. Note, the 1ist quarter is Jan, Feb and March , 2nd quarter is Apr, May, June, 3rd quarter is July, Aug and Sept, and 4th quarter is Oct, Nov and Dec. Month Jan Feb Mar April May June July Aug Sept Oct Nov DecLast Year 100 125 135 175 185 200 150 140 130 200 225 250Current Year 125 135 135 190 200 190

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Asked Sep 11, 2019
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Consider the monthly sales data of a company for last year as well as first six month data for current year. Use a three- quarter weighted moving average, Forecast the sales of company for 3rd Quarter of current year. Use Weights of 4/7, 2/7 and 1/7, giving more weight to more recent data. Note, the 1ist quarter is Jan, Feb and March , 2nd quarter is Apr, May, June, 3rd quarter is July, Aug and Sept, and 4th quarter is Oct, Nov and Dec. 

Month Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Last Year 100 125 135 175 185 200 150 140 130 200 225 250
Current Year 125 135 135 190 200 190

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Expert Answer

Step 1

Given information:

 

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Quarter Month Last year Jan 100 Feb Mar Apr May Jun 1 125 135 175 2 185 200 Jul 150 Aug Sep Oct Nov 3 140 130 200 4 225 250 Current year Dec Jan Feb 125 1 135 Mar 135 Apr May Jun 190 2 200 190

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Step 2

Calculation of three quarter weight average forecast for the 3rd quarter of the current year:

 

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А C E 1 Quarter Jan Feb Month Last year Weights Sum of three quarters Forecast 2 100 1/7 2/7 3 1 125 Mar 4/7 4 135 Apr May 175 5 6 185 200 Jun 7 Jul 8 150 Aug Sep Oct Nov Dec 140 130 10 11 200 4 12 225 13 250 675 14 Current year Jan 15 125 Feb 16 135 Mar 17 135 395 Apr May Jun Jul 18 190 19 200 20 190 580 21 Aug Sep 22 3 181 23

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Step 3

Formula:

 

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A C E Weights Sum of three quarters =1/7 2/7 4/7 1Quarter Month Last year Forecast 100 125 135 175 185 200 150 140 130 200 225 250 Current year Jan Feb Mar 4 1 Apr May Jun 5 E 7 2 Jul Aug Sep Oct Nov 10 3 11 12 13 4 |=SUM(C11:C13) Dec 14 125 135 135 190 200 190 Jan 15 16 Feb 17 1 Mar Apr May Jun Jul Aug Sep -SUM(C15:C17) 18 19 - SUM(C18 : C20) 20 2 21 22 =ROUNDUP(AVERAGE(E13D2,E17 D3 E20 D4),0) 23 3

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