Question

The weighted moving average forecast for the 5th period, with weights of 0.15 for period 1, 0.20 for period 2, 0.25 for period 3, and 0.40 for period 4, using the demand data shown below is ___________ period demand 1 3,500 2 3,800 3 3,500 4 4,000

Answer 1

Multiply the demand values by the weights and report the sum.

0.15×3,500 +0.20×3,800 +0.25×3,500 +0.40×4,000 = 525 +760 +875 +1600

= 3,760

The weighted moving average forecast for the 5th period is 3,760.