Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown in the following table. What is the forecast for July if the 3-month weighted moving-average method is used? (Use weights of 0.5 for the most recent demand, 0.3, and 0.2 for the oldest demand.)
A) fewer than or equal to 432 units
B) greater than 432 units but fewer than or equal to 442 units
C) greater than 442 units but fewer than or equal to 452 units
D) greater than 452

Question

Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown in the following table. What is the forecast for July if the 3-month weighted moving-average method is used? (Use weights of 0.5 for the most recent demand, 0.3, and 0.2 for the oldest demand.) 
A) fewer than or equal to 432 units 
B) greater than 432 units but fewer than or equal to 442 units 
C) greater than 442 units but fewer than or equal to 452 units 
D) greater than 452

Quizplus · Accepted Answer

To calculate the 3-month weighted moving average forecast for July, we need to use the formula:

Forecast for July = (0.5 x Demand in June) + (0.3 x Demand in May) + (0.2 x Demand in April)

Plugging in the numbers from the table, we get:

Forecast for July = (0.5 x 436) + (0.3 x 422) + (0.2 x 438) = 436

Therefore, the forecast for July is 436 units. The closest option to this value is option C, which is greater than 442 but less than or equal to 452 units.

Demands for a Newly Developed Salad Bar at the Great