The annual demand of the year 2010 is provided below. Find theforecasted demand for January, 2011.
Use a 3-month weighted moving average method. The weightratio is 3:2:1 with the heaviest weight applied to the most currentdata.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Demand
17
20.4
23.8
27.2
21.6
27.6
31.2
26.35
22.95
15.3
16
14
Expert Answer
The forecasted demand for Jan 2011 using three month weightedmoving average will be
= (3/6 x 14) + (2/6 x 16) + (1/6 x 15.3)
= (42 + 32 + 15.3) / 6
= 89.30 / 6
= 14.88