What will be the forecast for the month of October using a 3-period moving average and weights of 0.2,0.3 and 0.5,if the demand during the months of May,June,July,August and September was 200,180,210,200 and 220 respectively? (The desire is to have the most recent data inﬂuence the forecast most strongly.)
A)200
B)207
C)212
D)225

Question

Quizplus · Accepted Answer

We need to calculate the 3-period moving average using the given weights of 0.2, 0.3, and 0.5.

October forecast = (0.2 * September demand) + (0.3 * August demand) + (0.5 * July demand)

Substituting the given values, we get:

October forecast = (0.2 * 220) + (0.3 * 200) + (0.5 * 210) = 44 + 60 + 105 = 209

Therefore, the closest option is C) 212.

What Will Be the Forecast for the Month of October