Table 14.8
-Use the information in Table 14.8.Using the 4-month weighted moving-average technique and the following weights,what is the forecasted demand for November?
A)fewer than or equal to 250 units
B)greater than 250 but fewer than or equal to 265 units
C)greater than 265 but fewer than or equal to 280 units
D)more than 280 units

Question

Table 14.8 
-Use the information in Table 14.8.Using the 4-month weighted moving-average technique and the following weights,what is the forecasted demand for November? 
A)fewer than or equal to 250 units 
B)greater than 250 but fewer than or equal to 265 units 
C)greater than 265 but fewer than or equal to 280 units 
D)more than 280 units

Quizplus · Accepted Answer

To calculate the 4-month weighted moving average, we use the weights from Table 14.8: - Weight for August: 1 - Weight for September: 2 - Weight for October: 3 - Weight for November: 4 We also need the demand data for the previous 4 months: - August demand: 240 units - September demand: 250 units - October demand: 270 units - November demand: unknown Then, we calculate the weighted moving average for November: (1 x 240) + (2 x 250) + (3 x 270) + (4 x unknown) = 240 + 500 + 810 + 4x = 1550 + 4x To forecast the demand for November, we divide the weighted moving average by the sum of the weights: 1550 + 4x / (1 + 2 + 3 + 4) = 1550 + 4x / 10 Simplifying this expression, we get: 155 + 0.4x Now we need to determine which range this falls into: - If the forecasted demand is 250 units or less, the answer is A. - If the forecasted demand is greater than 250 but less than or equal to 265 units, the answer is B. - If the forecasted demand is greater than 265 but less than or equal to 280 units, the answer is C. - If the forecasted demand is more than 280 units, the answer is D. Plugging our expression into each choice, we get: A) 155 + 0.4x ≤ 250, which gives x ≤ 237.5, so this choice is possible. B) 155 + 0.4x > 250 and 155 + 0.4x ≤ 265, which gives 250 < x ≤ 275, so this choice is not possible. C) 155 + 0.4x > 265 and 155 + 0.4x ≤ 280, which gives 265 < x ≤ 312.5, so this choice is possible. D) 155 + 0.4x > 280, which gives x > 312.5, so this choice is not possible. Therefore, the forecasted demand for November falls in the range of 265 to 280 units, which means the answer is C.

Table 14.8 -Use the Information in Table 14.8.Using the 4-Month Weighted Moving-Average