Question

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

Answer 1

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.