2 National Scan Inc Sells Radio Frequency Inventory Tags Monthly Sales For A Seven Month Period Were As Follows Sa 1 (21.51 KiB) Viewed 55 times
2. National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Sales Month (000 units) Feb. 19 Mar. 18 Apr. 15 May 20 Jun. 18 Jul. 22 Aug. 20
a. Plot the monthly data on a sheet of graph paper. b. Forecast September sales volume using each of the following: (1) The naive approach (2) A five- month moving average (3) A weighted average using .60 for August, .30 for July, and 10 for June (4) Exponential smoothing with a smoothing constant equal to .20, assuming a a March forecast of 19(000) (5) A linear trend equation c. Which method seems least appropriate? Why? (Hint: Refer to your plot from part a.) d. What does use of the term sales rather than demand presume?
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