Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales of industrial vacuum cleaners at Larry Armstrong Supply Co. over the past 13 months are shown below: Aug. Sept. Oct. Nov. Dec. Jan.

image text in transcribed

Sales of industrial vacuum cleaners at Larry Armstrong Supply Co. over the past 13 months are shown below: Aug. Sept. Oct. Nov. Dec. Jan. Month Jan. Feb. March April May Sales (in 11 14 thousands) June July 16 10 15 17 11 14 17 12 12 14 16 11 Q1)Using a moving average with 3 periods, determine the demand for vacuum cleaners for next February. Q2)Using a weighted moving average with 3 periods, determine the demand for vacuum cleaners for February. Use 0.6, 0.3, and 0.1 for the weights of the most recent, second most recent, and third most recent periods, respectively. For example, if you were forecasting the demand for February, November would have a weight of 0.1, December would have a weight of 0.3, and January would have a weight of 0.6. Q3)Using MAD, determine which is the better forecast. Q4)What other factors might Armstrong consider in forecasting sales?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Stephen P Robbins, Mary Coulter

11th Edition

9780273752776, 132163845, 273752774, 978-0132163842

More Books

Students also viewed these General Management questions

Question

How important is informality in conversations?

Answered: 1 week ago