Table 8.8
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:

-Use the information from Table 8.8.The pizza shop manager believes that a combination forecast might improve her ability to predict future demand,and thus improve keeping fresh ingredients on hand.She decides to use the 3-week weighted moving average and exponentially smoothed average forecast,giving them equal weight.What is her forecast for week #7?
A)38.75 pizzas
B)40.8 pizzas
C)42.25 pizzas
D)44.8 pizzas

Question

Table 8.8
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:
 
-Use the information from Table 8.8.The pizza shop manager believes that a combination forecast might improve her ability to predict future demand,and thus improve keeping fresh ingredients on hand.She decides to use the 3-week weighted moving average and exponentially smoothed average forecast,giving them equal weight.What is her forecast for week #7?
A)38.75 pizzas 
B)40.8 pizzas 
C)42.25 pizzas 
D)44.8 pizzas

Quizplus · Accepted Answer

The 3-week weighted moving average forecast for week #7 is (30 + 35 + 40) / 3 = 35 pizzas. The exponentially smoothed average forecast for week #7 is 35 + 0.5(40 - 35) = 37.5 pizzas. The combination forecast is (35 + 37.5) / 2 = 36.25 pizzas.

Table 8.8 The Manager of a Pizza Shop Must Forecast Weekly Demand