Table 8.5

-Use the information in Table 8.5. Using the 4-month weighted moving-average technique and the following weights, what is the forecasted demand for November?
A) fewer than or equal to 250 units
B) greater than 250 but fewer than or equal to 265 units
C) greater than 265 but fewer than or equal to 280 units
D) more than 280 units

Question

Table 8.5
 
-Use the information in Table 8.5. Using the 4-month weighted moving-average technique and the following weights, what is the forecasted demand for November? 
A) fewer than or equal to 250 units 
B) greater than 250 but fewer than or equal to 265 units 
C) greater than 265 but fewer than or equal to 280 units 
D) more than 280 units

Quizplus · Accepted Answer

To calculate the 4-month weighted moving average forecast, we use the following formula:

Forecast for next period = W1(Actual demand from the most recent period) + W2(Actual demand from the second-most recent period) + W3(Actual demand from the third-most recent period) + W4(Actual demand from the fourth-most recent period)

Using the weights given in the question, we get:

Forecast for November = (0.5 x 280) + (0.3 x 265) + (0.1 x 250) + (0.1 x 230)
= 140 + 79.5 + 25 + 23
= 267.5

Therefore, the forecasted demand for November is greater than 265 but fewer than or equal to 280 units, so the answer is C.

Table 8.5 -Use the Information in Table 8.5. Using the 4-Month Weighted