Question $4$

$5pts$

Given the following historical demand, what is the $4-$period $(n=4)$ moving average forecast for Week $6?$

Week $1=4000$

Week $2=6000$

Week $3=8000$

Week $4=10000$

Week $5=12000$

Week $6=$ Predict using the $4-$period $)=(4$ moving average forecast

Last Period Forecast: $,F_{t+1}=D_t$ where $F_{t+1}=$ forecast for the next period, $t+1$ and $D_t=$ demand for the current period, $t$

Moving Average Forecast

Weighted Moving Average

Forecast

$F_{t+1}=\frac{{\displaystyle \underset{i=1}{\overset{n}{}}}{D}_{t+1-i}}{n},F_{t+1}={\displaystyle \underset{i=1}{\overset{n}{}}}{W}_{t+1-i}{D}_{t+1-i}$

and $n=$ number of most recent demand observation s used in the forecast and $W_{t+1-i}=$ weight assigned to the demand in period, $t+1-i$

$8000$

$10000$

$12000$

$9000$

$11000$