Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor’s sales personnel call on the 1st day of each month, compute your forecast sales by each of the 3 methods requested below.
a. Using a simple 3-month moving average, what is the forecast for September?
b. Using a weighted moving average, what is the forecast for September with wights of .2,.3, and .5 for June, July & August respectively?
c. Using single exponential smoothing & assuming that the forecast for June had been 130, forecast sales for September with a smoothing constant alpha of .3.
Please use Microsoft excel spreadsheet, thanks!
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