Forecasting

 

Problem 3-2

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

 Month   Sales
             (000)Units  

Feb.       17

Mar.       18

Apr.        14

May.        21  

Jun.        18  

Jul.          25  

Aug.        23

b.Forecast September sales volume using each of the following:

(1) A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)

           Yt ________thousands  

(2)A five-month moving average. (Round your answer to 2 decimal places.)

  

Moving average_______ thousands  

(3) Exponential smoothing with a smoothing constant equal to .10, assuming a March forecast of 19(000). (Round your intermediate forecast values and final answer to 2 decimal places)

  

Forecast_________thousands  

(4)The naive approach.

   

Naive approach______________ thousands  

(5) A weighted average using .60 for August, .10 for July, and .30 for June. (Round your answer to 2 decimal places.)

  

Weighted average__________ thousands