Table 8.5
-Use the information in Table 8.5.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 8.5 
-Use the information in Table 8.5.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 need to multiply the demand for each month by the corresponding weight and then sum those values. The weights are given as 0.60, 0.30, 0.05, and 0.05 for the months August, September, October, and November respectively.

Therefore, the forecasted demand for November is:
(0.60 x 250) + (0.30 x 270) + (0.05 x 290) + (0.05 x 280) = 150 + 81 + 14.5 + 14 = 259.5

So the best choice is C, greater than 265 but fewer than or equal to 280 units.

Table 8.5 -Use the Information in Table 8.5.Using the 4-Month Weighted Moving-Average