Calculate the three months moving average

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Reference no: EM132791617

The manager of the milky industries want to forecast the demand for their dairy milk processing operation to plan supply and the processing capacity. Through a discussion with its sales and marketing team, he finds the sales value during the past 10 months.

Months. (2020) Dairy milk (000 Gallons )

April. 800
May. 725
June. 600
July. 500
August. 645
September. 690
October. 730
November. 1010
December. 980

1. Calculate the three months moving average forecast for the month of February.

2. Use exponential something assuming a=0.6 and the forecast for April 2020 was 810 to forecast the milk consumption (gallons) for february 2021

3. Provide your recommendation to manager on what forecasting technicto use for their operation and explaining the reasonsfor the choice.

Reference no: EM132791617

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