Table 14.8
-Use the information in Table 14.8.Using the simple moving-average technique for the most recent three months,what will be the forecasted demand for November?
A)fewer than or equal to 260 units
B)greater than 260,but fewer than or equal to 275 units
C)greater than 275,but fewer than or equal to 290 units
D)more than 290 units

Question

Table 14.8 
-Use the information in Table 14.8.Using the simple moving-average technique for the most recent three months,what will be the forecasted demand for November?
A)fewer than or equal to 260 units 
B)greater than 260,but fewer than or equal to 275 units 
C)greater than 275,but fewer than or equal to 290 units 
D)more than 290 units

Quizplus · Accepted Answer

To use the simple moving-average technique, we calculate the average of the most recent three months' demand. 
For November, we would use the demand from August, September, and October: 250 + 280 + 300 = 830. 
Dividing by three, we get a forecast for November of 276.67, which is greater than 275 but less than 290. Therefore, the answer is C.

Table 14.8 -Use the Information in Table 14.8.Using the Simple Moving-Average Technique