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Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations

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Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Steve and Wes know they must prepare/use forecasts to make effective decisions for the business. They currently must decide how many bananas to purchase for the business-especially since they are perishable and can get damaged/smooshed. The pair have documented banana sales for 12 periods as shown below and other relevant data on Page 2 and have decided to create a forecast for period 13 using 4 different methods (shown below). Given this information, complete the necessary mathematics and provide answers on the next page: 1. Nave 2. Moving Average 3. Weighted Moving Average 4. Exponential Smoothing Period Sales (units) 1 122 2 109 3 147 4 169 5 195 6 187 7 210 8 203 9 240 10 275 11 265 12 305 For answers, only include #s. No verbiage. I will look to left for supporting info. ANALYSIS 1 - Use data provided on Page 1 1. Nave Forecast Rationale/Math (must show): Answer: (2 pts) 2. Four Period Moving Average (4PMA) Math (must show): Answer: (2 pts) 3. Weighted Moving Average using weights of .4.3.2 and 1 Math (must show): Answer: (2 pts) 4. Given the information provided why would a weighted moving average be a better forecasting technique than a standard moving average? Answer in 1 brief sentence ONLY. (2 pts) 5. Exponential Smoothing Forecast using a = .15 and initial forecast for Period 8is 210. Must show math: Answer: (7 pts)

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