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2. National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Sales Month (000 units) Feb. Mar. Apr.
2. National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Sales Month (000 units) Feb. Mar. Apr. May Jun. Jul. Aug. 8 8 20 22 20 a. Plot the monthly data on a sheet of graph paper. b. Forecast September sales volume using each of the following: (1) The naive approach (2) A five-month moving average (3) A weighted average using .60 for August, .30 for July, and .10 for June (4) Exponential smoothing with a smoothing constant equal to .20, assuming a a March forecast of 19(000) (5) A linear trend equation c. Which method seems least appropriate? Why? (Hint: Refer to your plot from part a.) d. What does use of the term sales rather than demand presume?
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