Chapter 7 ng average. Use weights econd most recent period, nt period, and method. Assume the forec determine the error CASE QUESTIONS 1. Calculate a forecast using a simple three-month moving average 2. Calculate a forecast using a three-period weighted moving averad 0.60, 0.30, and 0.10 for the most recent period, the second m the third most recent period, respectively. 3. Calculate a forecast using the exponential smoothing method. A for period 1 is 9,500. Use alpha = 0.40. 4. Once you have calculated the forecasts based on the above data, de terms by comparing them to the actual sales for 2012 given below: PERIOD 2016 January 10,696 TIRES USED TO February March April May June 9,665 10,179 11,7602 9,150 9,571 8,375 July August September 11,826 10,696 October 11,212 November 9,750 December 9,380 5. Based on the three methods used to calculate a forecast for TFY, which metho produced the best forecast? Why? What measures of forecast error did you use could you improve upon this forecast? Comand Management 229 CASE 7.1 Tires for You, Inc. Tires for you. Th in replacement tire the past few years bec tire replacement is a mechanical repairs, e the company. His senior this year what they sold season stockouts occur for You, Inc. (TFY), founded in 1987, is an automotive repair shop specializing ement tires. Located in Altoona, Pennsylvania, TFY has grown successfully over w years because of the addition of a new general manager, Ian Overbaugh. Since ement is a major portion of TFY's business (it also performs oil changes, small al repairs, etc.), lan was surprised at the lack of forecasts for tire consumption for any. His senior mechanic, Skip Grenoble, told him that they usually stocked for what they sold last year. He readily admitted that several times throughout the stockouts occurred and customers had to go elsewhere for tires. Ithough many tire replacements were for defective or destroyed tires, most tires were Jed on cars whose original tires had worn out. Most often, four tires were installed at came time, Ian was determined to get a better idea of how many tires to hold in stock ng the various months of the year. Listed below is a summary of individual tire sales by month: TIRES USED PERIOD 2014 October November 9,797 11,134 10,687 December 2015 January February March April May June 9,724 8,786 9,254 10,691 9,256 8,700 10,192 10,751 9,724 10,193 11,599 11,130 July August September October November December lan has hired you to determine the best technique for forecasting TFY demand based on the given data