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The following gives the number of pints of blood used at Woodlawn Hospital in th

ID: 409777 • Letter: T

Question

The following gives the number of pints of blood used at Woodlawn Hospital in the past 6 weeks:

a. Forecast the demand for the week of October 12 using a 3 week moving average.

b. Use a 3 week weighted moving average, with weights of .1, .3 and .6 using .6 for the most recent week. Forecast demand for the week of October 12.

c. Compute the forecast for the week of October 12 using exponential smoothing with a forecast for August 31 of 360 and = .2.

Week of Prints used August 31 360 September 7 389 September 14 410 September 21 381 September 28 368 October 5 374

Explanation / Answer

Week of

Prints used

August 31

360

September 7

389

September 14

410

September 21

381

September 28

368

October 5

374

Answer A:-

For three week moving average, we will take the average of latest three month’s average:-

Forecast for October 12:- (374+368+381)/3 = 374.33

Answer B:-

3 week weighted moving average, Forecast for October 12:- (374*0.6+368 *0.3+381 *.01)/(0.6+0.3+0.1) = 372.9

Answer C:-

Week of

Prints used

Forecast

August 31

360

360

September 7

389

360

September 14

410

365.8

September 21

381

374.64

September 28

368

375.91

October 5

374

374.33

Exponential smoothing forecasting = Ft = Ft-1 +(At-1-Ft-1)

In the question, Ft-1 =360 =0.2 At-1=360

Exponential smoothing forecasting for Sept 7=360+0.2(360-360) =360        

Exponential smoothing forecasting for Sept 14=360+0.2(389-360) =365.8

Exponential smoothing forecasting for Sept 21=365.8+ 0.2(410-365.8) =374.64

Exponential smoothing forecasting for Sept 28=374.64+ 0.2(381-374.64) =375.91

Exponential smoothing forecasting for October 5=375.91+0.2(368-375.91) =374.33

Exponential smoothing forecasting for October 12=374.33+0.2(374-374.33) =374.264

So answer is:- 374.264

Week of

Prints used

August 31

360

September 7

389

September 14

410

September 21

381

September 28

368

October 5

374

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