Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as
Question:
Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as follows:
SALES ($1,000s) | MONTH |
11 | Jan |
14 | Feb |
16 | Mar |
10 | April |
15 | May |
17 | Jun |
11 | Jul |
14 | Aug |
17 | Sep |
12 | Oct |
14 | Nov |
16 | Dec |
11 | Jan |
(a) Using a moving average with three periods, determine the demand for vacuum cleaners for next February. (b) Using a weighted moving average with three periods, determine the demand for vacuum cleaners for February. Use 3, 2, and 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 1, December would have a weight of 2, and January would have a weight of 3. (c) Evaluate the accuracy of each of these methods. (d) What other factors might R. Lowenthal consider in forecasting sales?