This question is incomplete, the complete question is;
Given that a Historical Demand for a product is;
Month Demand
January 12
February 11
March 15
April 12
May 16
June 15
Using a weighted moving average with weights of 0.60 for June, 0.30 for May, and 0.10 for April, find the July forecast.
Answer: the July forecast is 15
Step-by-step explanation:
Given that;
Month Demand Weights
January 12
February 11
March 15
April 12 0.10
May 16 0.30
June 15 0.60
July ? ?
Formula for calculating weighted moving average is
Ft = w1A_t-1 + w2A_t-2 ............+ wnA_t-n
w1, w2, wn is the weight assigned to the period t-1, t-2, t-n respevtively
A_t-1, A_t-2, A_t-n is the demand period t-1, t-2, t-n respevtively
and n is the total number prior periods in the forecast.
so we just substitute our values into the equation
Forecast(July) = (15 × 0.6) + (16 × 0.30) + ( 12 × 0.10)
= 9 + 4.8 + 1.2
= 15
Therefore the July forecast is 15
