Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor’s sales personnel call on the fi rst day of each month, compute your forecast sales by each of the three methods requested here.

ACTUAL June July August 140 180 170

a. Using a simple three-month moving average, what is the forecast for September?

b. Using a weighted moving average, what is the forecast for September with weights of .20,

.30, and .50 for June, July, and August, respectively?

c. Using single exponential smoothing and assuming that the forecast for June had been 130, forecast sales for September with a smoothing constant alpha of .30.