Question

If the actual demand for period 6 is 54, what is the forecast demand for period 7 using the same weights as in part a?

Answer 1

To calculate the forecast demand for period 7 using the same weights, we can use a simple moving average forecast.

Step-by-step explanation:

To calculate the forecast demand for period 7 using the same weights as in part a, we need to know the weights assigned to the previous periods. Assuming the weights are equal, we can use a simple moving average forecast.

The formula for a simple moving average forecast is:

Forecast demand = (demand for period 6 + demand for period 5 + demand for period 4 + ...)/ number of periods

In this case, if the weights for all periods are equal, we can use:

Forecast demand for period 7 = (54 + demand for period 6 + demand for period 5 + demand for period 4 + ...)/6