5 . Daily demand for newspapers for the last 5 days given in the following table

Question

5. Daily demand for newspapers for the last 5 days given in the following table:

Day

Demand

Sunday

         10

Monday

14

Tuesday

12

Wednesday

10

Thursday

11

Friday

--

Forecast demand for Friday using a three-day moving average.

Using weight 2 for Wednesday and 3 for Thursday, Forecast demand for Friday using weighted moving average.

Forecast demand for Friday using simple exponential smoothing assuming that forecast for Thursday is 9 and smoothing constant = 0.6

Day

Demand

Sunday

         10

Monday

14

Tuesday

12

Wednesday

10

Thursday

11

Friday

--

Explanation / Answer

1. three-day moving average =last 3 months total/3 =(12+10+11)/3 =11

2) weighted moving average =(2*10+3*11)/(2+3)=10.6

3) exponential smoothing forecast =11*0.6+(1-0.6)*9=10.2

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