National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a s
ID: 415706 • Letter: N
Question
National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows Sales Month(000)Units Feb. Mar. Apr. May Jun . Jul. Aug 19 15 17 19 20 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 .25, assuming a March forecast of 15(000). (Round your intermediate forecast values and final answer to 2 decimal places) Forecast thousands (4) The naive approach. aive approach thousands (5) A weighted average using.65 for August, 10 for July, and .25 for June. (Round your answer to 2 decimal places.) Weighted averagethoExplanation / Answer
Answer:-
Month
FEB
19
MARCH
15
APRIL
8
MAY
17
JUNE
19
JULY
20
AUG
22
Answer :- Five month moving average:= (8+17+19+20+22)/5 =17.2
Answer :-
Month
Sales
Ft
FEB
19
MARCH
15
15
APRIL
8
15
MAY
17
13.25
JUNE
19
14.19
JULY
20
15.39
AUG
22
16.54
=0.25
Exponential smoothing forecasting = Ft = Ft-1 +(At-1-Ft-1)
For April:- Ft = Ft-1 +(At-1-Ft-1) =15+0.25(15-15) = 15
For May:- Ft = Ft-1 +(At-1-Ft-1)=15+0.25(8-15) =13.25
For June:- Ft = Ft-1 +(At-1-Ft-1)=13.25+0.25(17-13.25) =14.19
For July:- Ft = Ft-1 +(At-1-Ft-1)=14.19+0.25(19-14.19) =15.39
For Aug:- Ft = Ft-1 +(At-1-Ft-1)=15.39+0.25(20-15.39) =16.54
For Sep:- Ft = Ft-1 +(At-1-Ft-1)=16.54+0.25(22-16.54) =17.91
So correct answer:- 17.91
Answer:- Naïve Method:- 2200 as in Naïve method, the actual sales of last period is taken as the forecast of next period.
Answer:- Weighted Average Forecast= (22*0.65 +20*0.1 +19*0.25)/(0.65+0.1+0.25)=14.3+2+4.75=21.05
Month
FEB
19
MARCH
15
APRIL
8
MAY
17
JUNE
19
JULY
20
AUG
22
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