Delta Corp's plant in Austin has been experiencing imbalances in its inventory of components used in the production of a line of computer printers. Both stock shortages and overstock conditions are occurring.
The production analysis group is studying the pattern of demand for component PS2400, a power supply used in many of Delta's products. The group believes that the most recent 12 weeks of demand for the PS2400 is representative of the future weekly demand:
a. Use a four-week moving average to develop a forecast of the demand for the PS2400 component in week 13.
b. Use a four-week weighted moving average with weights of .4 (for the most recent datum), .3, .2, and .1 to forecast the demand for the PS2400 component in week 13.
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