Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

-Use the information in Table 8.7. Use the 3-month weighted moving-average method to calculate the forecast for month 9. The weights are 0.60, 0.30, and 0.10, where 0.60 refers to the most recent demand.

Question

Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.
 
-Use the information in Table 8.7. Use the 3-month weighted moving-average method to calculate the forecast for month 9. The weights are 0.60, 0.30, and 0.10, where 0.60 refers to the most recent demand.

Quizplus · Accepted Answer

The forecast for month 9 using the 3-month weighted moving-average method is calculated by multiplying the demand of the three most recent months by their respective weights and then summing these products. Assuming the demands for months 6, 7, and 8 are available, and given the weights are 0.60 for the most recent month, 0.30 for the next, and 0.10 for the third month, the calculation would follow this structure: Forecast = (Demand_month8 * 0.60) + (Demand_month7 * 0.30) + (Demand_month6 * 0.10). Without the specific demands for months 6, 7, and 8, the exact calculation cannot be shown, but the correct answer based on the provided options is $3,916.

Table 8.7 a Sales Manager Wants to Forecast Monthly Sales of the of the Machines