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Egg sales are a major concern at MV Grocery. The following gives the demand for the past eight weeks (in dozens). Week Demand 1 250

  1. Egg sales are a major concern at MV Grocery. The following gives the demand for the past eight weeks (in dozens).

Week

Demand

1

250

2

200

3

220

4

190

5

230

6

240

7

260

8

230

  1. Using a two-week moving average, develop forecasts for weeks 6 through 9. (1.5 marks)
  2. Using a weighted moving average with weights of 0.40, 0.30, 0.20, and 0.10, develop forecasts for weeks 6 through 9. (1.5 marks)
  3. Using exponential smoothing with = 0.4 and a week 5 forecast of 210, find the forecast for week 6. (1.5 marks)
  4. Which method was most appropriate and why? (1.5 marks)
  5. A recently introduced product has a positive trend in sales. The product's sales have increased in each of its first eight weeks on the market. The forecast for week 6 was 1,325 (F6 = 1,325), with A5 = 1,283 and T5 = 42. Using smoothing components = 0.20 and = 0.30, develop forecasts for weeks 7 and 8. (9 marks)

Week

Demand

1

1,000

2

1,050

3

1,125

4

1,150

5

1,250

6

1,300

7

1,310

8

1,400

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