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Month Demand (units)
July 240
August 310
Sept 280
Oct 250
Using the 4-month weighted moving-average technique and the following weights, what is the
forecasted demand for November?
Time Period Weights
Most recent month 50%
1 month ago 20%
2 months ago 20%
3 months ago 10%
Fewer than or equal to 250 units
Greater than 250 but fewer than or equal to 265 units
Greater than 265 but fewer than or equal to 280 units
More than 280 units
Solution
The title is different from the information provided. I will use the data provided.
Since November is the month after October, and we have data for October, the answer is
straightforward. It equals .5(Oct count) + .2(Sep count) + .2(Aug count) + .1(July count) =
.5(250) + .2(280) + .2(310) + .1(240) = 125 + 56 + 62 + 24 = 267 The forecast is greater than
265 but fewer than or equal to 280 units.

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Month Demand (units) July 240 August 310 Sept 280 Oct 250.pdf

  • 1. Month Demand (units) July 240 August 310 Sept 280 Oct 250 Using the 4-month weighted moving-average technique and the following weights, what is the forecasted demand for November? Time Period Weights Most recent month 50% 1 month ago 20% 2 months ago 20% 3 months ago 10% Fewer than or equal to 250 units Greater than 250 but fewer than or equal to 265 units Greater than 265 but fewer than or equal to 280 units More than 280 units Solution The title is different from the information provided. I will use the data provided. Since November is the month after October, and we have data for October, the answer is straightforward. It equals .5(Oct count) + .2(Sep count) + .2(Aug count) + .1(July count) = .5(250) + .2(280) + .2(310) + .1(240) = 125 + 56 + 62 + 24 = 267 The forecast is greater than 265 but fewer than or equal to 280 units.