Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown below. What is the forecast for July if the weighted moving average method is used? (Use weights of 0.5 for the most recent demand,0.3,and 0.2. )

Question

Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown below.  What is the forecast for July if the weighted moving average method is used? (Use weights of 0.5 for the most recent demand,0.3,and 0.2. )

Quizplus · Accepted Answer

The weighted moving average for July would be:
(0.5)(408) + (0.3)(400) + (0.2)(448) = 204 + 120 + 89.6 = 413.6
Therefore, the forecast for July is greater than 442 units but less than or equal to 452 units, which is Option C.

Demands for a Newly Developed Salad Bar at the Great