19 os A. nt s, respectively for t and hen thee deciding bakeries mvie heater Nup

Question

19 os A. nt s, respectively for t and hen thee deciding bakeries mvie heater Nuppos that you are sing the five perind simple moving average method to forecast sales, and sales have been mrrea nghy 23% every period How wil, yoor forecasts perform? A) Forecast. wit1 be bowe·than actual Foreast will be higher than actal D)Forecast, will be a ing by 20% every period ' recast, wil, bu increasing by 5%every period Given the folhow ing dats Given the follow ing dats, use esponential smoothing (-1 to develop a demand forecast for period 3 Assone the foreceast for the initial period is 500 What is the forecast od Demand Forecast 600 200 A) 6 11) 470 ) 341 10 479

Explanation / Answer

Q21. A. Forecast will lower than actual.

Suppose period 1 actual is 100, Accordingly period 2 = 125, period 3 = 156.25, period 4 = 195.3125, period 5 = 244.1406. Period 6 = 305.1758 Period 6 forecast = Average of period 1 to 5 = 164.1406

Q22. E 479

Period 2 Forecast = 0.1*600 + (1 - 0.1)*200 = 510

Period 3 Forecast = 0.1*200 + (1 - 0.1)*510 = 479

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