The manager of Carpet City outlet needs to make an accurate forecast of demand for Soft Shag Carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months: Month Demand for Soft Shag Carpet (1000 yd) 1 8 2 12 3 7 4 9 5 15 6 11 7 10 8 12 Required showing all workings: Compute a 3-month moving average forecast for months 4 through 9. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month.
The manager of Carpet City outlet needs to make an accurate forecast of demand for Soft Shag Carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months: Month Demand for Soft Shag Carpet (1000 yd) 1 8 2 12 3 7 4 9 5 15 6 11 7 10 8 12 Required showing all workings: Compute a 3-month moving average forecast for months 4 through 9. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....
Related questions
Question
The manager of Carpet City outlet needs to make an accurate
|
Month |
Demand for Soft Shag Carpet (1000 yd) |
|
1 |
8 |
|
2 |
12 |
|
3 |
7 |
|
4 |
9 |
|
5 |
15 |
|
6 |
11 |
|
7 |
10 |
|
8 |
12 |
Required showing all workings:
- Compute a 3-month moving average forecast for months 4 through 9.
- Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month.
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