Question

demand for a particular type of battery fluctuates from one week to the the next. A study of the last six weeks provides the following demands (in dozens): 5, 5, 3, 2, 8, 10 (last week). forecast demand for next week using a three-week moving average where the weights are 3, 2, 1, (the heighest weight is for the most recent number).

Answer 1

Given the weighted we have and the requirement is to use the three-week moving average, we come up with the sales forecast by applying the formula as shown below:
(3x1 + 2x2 + 3x3) / 6 = 2.67

Answer 2

16

Step-by-step explanation:

Given:

Demands = 5, 5, 3, 2, 8, 10

now,

since the highest weight is for the most recent number , Weights assigned will be

Demand weight

10 3

8 2

2 1

Therefore,

Forecast demand =
`\frac{\sum{Weight* Demand}}{3}`

or

Forecast demand =
`\frac{3*10+2*8+1*2}}{3}`

or

Forecast demand = 16