A company wants to product a weighted moving average forecast for April with the weights 0.40,0.35,and 0.25 assigned to March,February,and January,respectively.If the company had demands of 5,000 in January,4,750 in February,and 5,200 in March,then April's forecast is
A)4983.33.
B)4992.50.
C)4962.50.
D)5000.00.

Question

Quizplus · Accepted Answer

The weighted moving average forecast is calculated by multiplying each month's demand by its respective weight and summing the results: (5200 * 0.40) + (4750 * 0.35) + (5000 * 0.25) = 2080 + 1662.5 + 1250 = 4992.5.

A Company Wants to Product a Weighted Moving Average Forecast