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Questions -
Q1. Cynthia's Design Studios had sales the last four months of $13,700, $15,400, $17,100, and $18,800. Sales are related to how many designers Cynthia has on-duty. The sales forecast helps her decide on the proper staffing levels.
a. What is the forecast for the fifth month using a two-period moving average?
b. What is the forecast for the fifth month using 0.9 in an exponential smoothing model with A4 = $18,800 and F4 = $16,913 to get things started.
Q2. A manufacturer uses a moving average to predict how many replacement parts for Part #8119 they should produce per month. Past demand is as follows.
Month
Demand (units)
1
302
2
288
3
325
4
401
5
430
6
456
What are the forecasts for month seven using two-, four-, and six-period moving averages? What can we learn from the answers?
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