National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a s
ID: 424628 • Letter: N
Question
National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:
b. Forecast September sales volume using each of the following:
(1) A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)
Yt thousands
(2) A five-month moving average. (Round your answer to 2 decimal places.)
Moving average thousands
(3) Exponential smoothing with a smoothing constant equal to .20, assuming a March forecast of 18(000). (Round your intermediate forecast values and final answer to 2 decimal places)
Forecast thousands
(4) The naive approach.
Naive approach thousands
(5) A weighted average using .60 for August, .20 for July, and .20 for June. (Round your answer to 2 decimal places.)
Weighted average thousands
Month Sales(000)Units Feb. 20 Mar. 23 Apr. 7 May. 25 Jun. 18 Jul. 28 Aug. 30
Explanation / Answer
Month
Sales
(000)Units
Feb.
20
Mar.
23
Apr.
7
May.
25
Jun.
18
Jul.
28
Aug.
30
Answer:- 5 month moving average:- (7+25+18+28+30)/5 =21.6 thousands units
Answer:- Naive Approach = Next month’s forecast= present actual sales =30 thousands units
Answer:- Weighted average=(0.6*30+0.2*28+0.2*18) =27.2 thousands units
Month
Sales
(000)Units
Feb.
20
Mar.
23
Apr.
7
May.
25
Jun.
18
Jul.
28
Aug.
30
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