Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as
Question:
Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as follows:
(a) Using a moving average with three periods, determine the demand for vacuum cleaners for next February.
(b) Using a weighted moving average with three periods, determine the demand for vacuum cleaners for February. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively. For example, if you were forecasting the demand for February, November would have a weight of 1, December would have a weight of 2, and January would have a weight of 3.
(c) Evaluate the accuracy of each of these methods.
(d) What other factors might R. Lowenthal consider in forecastingsales?
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna