Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
The monthly sales for Telco Batteries, Inc. are as follows (see image):
- Plot the monthly sales data
Forecast January sales using each of the following:- Naïve method
- A 3-month moving average
- A 6-month weighted average using 0.1, 0.1, 0.1, 0.2, 0.2, and 0.3 with the heaviest weights applied to the most recent month
- Exponential smoothing using an alpha = 0.3 and a September forecast of 18
- A trend projection
- With the data given, which method would allow you to forecast next March’s sales?
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Step 1: Given data
VIEW Step 2: Plot the monthly sales data
VIEW Step 3: Forecast January sales using each of the following:
VIEW Step 4: A three-month moving average
VIEW Step 5: A six-month weighted average using 0.1, 0.1, 0.1, 0.2, 0.2, and 0.3, with the heaviest weights...
VIEW Step 6: Exponential smoothing using an α = 0.3 and a September forecast of 18.
VIEW Step 7: A trend projection
VIEW Step 8: With the data given, which method would allow you to forecast next March’s sales
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