Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4. Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410, At-2 = 390, At-1 = 400. What will be the demand forecast for period t?

Question

Payne

Mathematics

10 November, 16:18

Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4. Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410, At-2 = 390, At-1 = 400. What will be the demand forecast for period t?

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Answers (1)

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Jaydan Stout · Answer 1

The forecast will be 397 ...

Step-by-step explanation:

We have given:

Weights for the periods are.

wt-4 = 0.1,

wt-3 = 0.2,

wt-2 = 0.3

and wt-1 = 0.4

Demand observed in the previous four periods was as follows:

At-4 = 380,

At-3 = 410,

At-2 = 390,

At-1 = 400

The demand forecast will be:

= 0.1*380+0.2*410+0.3*390+0.4*400

= 38+82+117+160

= 397

Thus the forecast will be 397 ...