QUESTION 3 (6 marks) Table 3 shows the Perotiga Ptd Ltd monthly sales. Table 3: Perotiga Ptd Ltd monthly sale MONTH Jan

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Question 3 6 Marks Table 3 Shows The Perotiga Ptd Ltd Monthly Sales Table 3 Perotiga Ptd Ltd Monthly Sale Month Jan 1 (76.17 KiB) Viewed 11 times

QUESTION 3 (6 marks) Table 3 shows the Perotiga Ptd Ltd monthly sales. Table 3: Perotiga Ptd Ltd monthly sale MONTH Jan Feb Mar Apr May Jun Jul SALES 230 302 275 321 403 305 357 a) Forecast demand for August using: i) A 3-month moving average (1 marks) ii) A 4-month weighted average using 1, 2, 4 and 6, with the heaviest weight applied to the most recent month. (1 marks) iii) Compare the performance of both forecasting techniques using MAD technique from May to July. State the reason why any one of these two techniques is a better predictor for this kind of data. (2 marks) b) Forecast demand for August starting from May using exponential smoothing technique. Use smoothing constant a= 0.6 and it is given that the forecast demand for May was 303 units. (2 marks)