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Klio2033 [76]
3 years ago
5

Given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for Week 6?

Business
1 answer:
Roman55 [17]3 years ago
7 0

Answer:

The correct option is B. 9200.

Explanation:

This can simply be answered as follows:

F_{6} =(D_{5}*W_{5})+(D_{4}*W_{4})+(D_{3}*W_{3}) .................. (1)

Where:

F_{6} = Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?

D_{5} = Week 5 demand = 11,000

D_{4} = Week 4 demand = 9,000

D_{3} = Week 3 demand = 7,000

The (0.4, 0.3, 0.3) implies that:

W_{5}  = Weight of Week 5 demand = 0.4

W_{4}  = Weight of Week 4 demand = 0.3

W_{3}  = Weight of Week 3 demand = 0.3

Substituting all the relevant values into equation (1), we have:

F_{6} = (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200

Therefore, the correct option is B. 9200.

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