Knowee
Questions
Features
Study Tools

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2015 = 230, year 2016 = 220, and year 2017 = 250), and we want to weight year 2015 at 30 percent, year 2016 at 30 percent, and year 2017 at 40 percent, which of the following is the weighted moving average forecast for year 2018?Group of answer choices253233.3320235233

Question

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2015 = 230, year 2016 = 220, and year 2017 = 250), and we want to weight year 2015 at 30 percent, year 2016 at 30 percent, and year 2017 at 40 percent, which of the following is the weighted moving average forecast for year 2018?Group of answer choices253233.3320235233

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the weighted moving average forecast for 2018, we need to multiply each year's sales by its respective weight and then sum up these values.

Here's how to do it:

  1. Multiply the sales of each year by its weight:

    • For 2015: 230 * 0.30 = 69
    • For 2016: 220 * 0.30 = 66
    • For 2017: 250 * 0.40 = 100
  2. Add up these values:

    • 69 + 66 + 100 = 235

So, the weighted moving average forecast for 2018 is 235.

This problem has been solved

Similar Questions

A manufacturing company has the monthly demand for its product as shown below.Month DemandFebruary 520March 490April 550May 580June 600July 420August 510September 610Calculate the 3-month weighted moving average forecast for the month of July with weights of 0.5, 0.3 and 0.2 for the most recent demand values, in that order. (answer in whole number)

Consider the following time series: Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales 4 6 5 8 9 5 4 3 7 8 Calculate a three-year moving average (MA(3)) for the second subset of three years (i.e. 2011-2013). Round your final answer to two decimal places.

(a) Calculate the 4-year moving average of the following data related to the sales in a department store.

The GMA corporation shows the following data  related to an item of InventoryInventory, January 1 100 units @P50 Purchases, January 9 300 units @ P54 Purchases, January 19 90 units @ P60 Sales, January 20 340 units Inventory, January 31 150 units What value should be assigned to the ending inventory using Weighted Average method?

Assume that Wally World uses a periodic weighted average inventory system. During the year, it had two sales. Calculate the weighted average cost per unit on hand as of June 30 when it figured its cost of goods sold for the month.  Date Activity Jan. 1Beginning Inventory8 @ $12Jun. 5Purchase12 @ $15Jun. 28Purchase10 @ $18Jun. 8Sale6 unitsJun. 30Sale8 unitsMultiple choice question.$18/unit$15/unit$15.20/unit$10/unit

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.