Sales of industrial vaccum cleaners at R. Lowenthal supply Co. over the past 13m
ID: 2676965 • Letter: S
Question
Sales of industrial vaccum cleaners at R. Lowenthal supply Co. over the past 13months are as follows: Sales ( $1,000s)/ month 11- Jan. 14- Feb. 16- march 10-april 15-may 17-june 11-july 14-august 17-sept. 12-oct. 14-nov. 16-dec. 11-jan.
a)using a moving average with three periods,determine the demand for vaccum cleaners for next feb.
b) using a weighted moving average with three periods, determine the demand for vaccum 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 forecassting the demand for Feb., 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?
Explanation / Answer
MONTH
SALES
THREE MONTH MOVING AVERAGE
JANUARY
11
FEB
14
MARCH
16
APRIL
10
(11+14+16)/3 =13.67
MAY
15
13.33
JUNE
17
13.67
JULY
11
14
AUGUST
14
14.33
SEPTEMBER
17
14
OCTOBER
12
14
NOVEMBER
14
14.33
DECEMBER
16
14.33
JANUARY
11
14
February
-
13.67
===================
MONTH
SALES
THREE MONTH MOVING AVERAGE
JANUARY
11
FEB
14
MARCH
16
APRIL
10
(1X 11+ 2X 14+ 3X 16)/6 =14.5
MAY
15
12.67
JUNE
17
13.5
JULY
11
15.17
AUGUST
14
13.67
SEPTEMBER
17
13.5
OCTOBER
12
15
NOVEMBER
14
14
DECEMBER
16
13.83
JANUARY
11
14.68
February
-
13.67
MONTH
SALES
THREE MONTH MOVING AVERAGE
JANUARY
11
FEB
14
MARCH
16
APRIL
10
(11+14+16)/3 =13.67
MAY
15
13.33
JUNE
17
13.67
JULY
11
14
AUGUST
14
14.33
SEPTEMBER
17
14
OCTOBER
12
14
NOVEMBER
14
14.33
DECEMBER
16
14.33
JANUARY
11
14
February
-
13.67
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