Question

Period demand sales volume

1 1000
2 1200
3 1450
4 1700
5 1850
6 1950

Find the four-period simple moving average forecasts for Periods 5 and 6

Answer 1

The four-period simple moving average forecast for Period 5 is 1337.5, and for Period 6, it is 1550, based on past sales volume data.

Step-by-step explanation:

The student is asking for the calculation of a four-period simple moving average forecast for Periods 5 and 6 based on previous demand/sales volume data. To compute the four-period simple moving average, we add up the sales volumes for the four periods leading up to the period we want to forecast and then divide by four. For Period 5, we use Periods 1 to 4, and for Period 6, we use Periods 2 to 5.

To find the four-period simple moving average for Period 5, we calculate as follows:

• (1000 + 1200 + 1450 + 1700) / 4 = 5350 / 4 = 1337.5

For Period 6, we calculate as follows:

• (1200 + 1450 + 1700 + 1850) / 4 = 6200 / 4 = 1550

The four-period simple moving average forecast for Period 5 is 1337.5, and for Period 6, it is 1550.