Question

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 992 pancakes in May, 2,222 pancakes in June, and 2,907 pancakes in July, what should be the forecast for August

Answer 1

2,466

Step-by-step explanation:

Calculation to determine what should be the forecast for August

August Forecast =[992 pancakes +(2,222 pancakes x3)+(2,907 pancakes x5)]/(5+3+1) =

August Forecast =(992 pancakes+6,666 pancakes+14,535 pancakes)/9

August Forecast =22,193 pancakes/9

August Forecast =2,466

Therefore should be the forecast for August is 2,466