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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
- 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 |
- Using a two-week moving average, develop forecasts for weeks 6 through 9. (1.5 marks)
- 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)
- Using exponential smoothing with = 0.4 and a week 5 forecast of 210, find the forecast for week 6. (1.5 marks)
- Which method was most appropriate and why? (1.5 marks)
- 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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