National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a s

Question

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Month Sales (000)Units

Feb. 18

Mar. 17

Apr. 11

May. 21

Jun. 17

Jul. 21

Aug. 25

b. Forecast September sales volume using each of the following:

(1) A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)

Yt thousands

(2) A five-month moving average. (Round your answer to 2 decimal places.)

Moving average thousands

(3) Exponential smoothing with a smoothing constant equal to .40, assuming a March forecast of 19(000). (Round your intermediate forecast values and final answer to 2 decimal places)

Forecast thousands

(4) A weighted average using .60 for August, .10 for July, and .30 for June. (Round your answer to 2 decimal places.)

Weighted average thousands

Explanation / Answer

1. linear

2. 5 month moving average: (numbers in thousands) (25+21+17+21+11)5= 95/5= 19000 units

the demand for September, based on 5 month moving average is 19,000 units

3.

4. with weights of= August 60%, July 10% and June 30%

= (25*0.6+21*0.1+17*0.3)= 15+2.1+5.1= 22,200 units

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