as follows:- Months Actual Sales 1 30,000 2 39,000 3 42,000 4 50,000 5 55,000 6 61,000 7 70,000 8 77,000 9 81,500 10 90,000 Spare Parts The garage stocks parts that are used in its operations on a regular basis. These parts include suspension parts, engine parts and body parts. Stocking parts can bring a number of benefits to the mechanic shop.

QUESTIONS

6. a. Use a three-period and a four-period weighted moving average to forecast sales for the 12th month. (Use weights of 1,2,3 and 1,2,3 4).

b. From the data provided in the case, use MAD to determine which forecasting technique is more accurate.

c. If forecast for month 7 is $72,000, with an alpha of 0.4, use exponential smoothing to forecast sales for months 8 and 9.