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 Feb Mar Apr May. Jun. Jul. Aug Sales (000)Units 18 18 15 26 16 20 27 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.) (2) A five-month moving average. (Round your answer to 2 decimal places.) Moving average (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) thousands (4) The naive approach. Naive approach thousands (5) A weighted average using 60 for August. 10 for July, and 30 for June. (Round your answer to 2 decimal places.)

Explanation / Answer

Answer :

Forecast for September Sales:

2. Moving Average = (15+26+16+20+27)/5 =20.8

3.

Month

April

4. Naive Approach = 27

5. 0.3*16+0.1*20+0.6*27 = 23

Month

F(old)+0.2(Actual-F(old) Forecast

April

19+0.2 *(15-19) 18.2 May 18.2+0.2 *(26-18.2) 19.76 June 19.76+0.2 *(16-19.76) 19.01 July 19.01+0.2 *(20-19.01) 19.21 August 19.21+0.2 *(27-19.21) 20.77 Sept 20.77+0.2 *(20-20.77) 20.62

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