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Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor's sales personnel call on the first day of each month, compute the forecast sales by each of the three methods requested here
Actual
June
140
July
180
August
170
a. Using simple three-month moving average, what is the forecast for September?
b. Using a weighted moving average, what is the forecast for September with weights of 0.20, 0.30, 0.50 for June, July, and August respectively?
c. Using single exponential smoothing and assuming that the forecast for June had been 130, forecast sales for September with a smoothing constant of alpha 0.30.
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How do "predictive analytics" enter the forecasting process? What recent advances facilitate the use of this approach?
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