Table 14.5
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:
-Use the information from Table 14.5.If a four-week weighted moving average were used,what would be the forecast for week 7? (The weights are 0.60,0.30,0.07,and 0.03 with 0.60 applied to the most recent period and 0.03 applied to the oldest period. )
A)58 pizzas
B)60 pizzas
C)62 pizzas
D)64 pizzas

Question

Table 14.5
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been: 
-Use the information from Table 14.5.If a four-week weighted moving average were used,what would be the forecast for week 7? (The weights are 0.60,0.30,0.07,and 0.03 with 0.60 applied to the most recent period and 0.03 applied to the oldest period. )
A)58 pizzas 
B)60 pizzas 
C)62 pizzas 
D)64 pizzas

Quizplus · Accepted Answer

To calculate the four-week weighted moving average forecast for week 7, multiply each of the past four weeks' sales by their respective weights and sum the results. Assuming the sales for weeks 3 to 6 are given, apply the weights: 0.60 for week 6, 0.30 for week 5, 0.07 for week 4, and 0.03 for week 3. The sum of these products will give the forecast for week 7, which is 58 pizzas.

Table 14.5 The Manager of a Pizza Shop Must Forecast Weekly Demand