Bob is a photographer who sells prints on consignment Each w

Bob is a photographer who sells prints on consignment. Each week during the summer, Bob checks the inventory so that he can replenish the prints that have been sold. The following data show the number of prints sold each week during the last eight weeks. Complete parts a through d below.

Week       1      2       3      4     5     6     7     8

Sold         14   12    11    14     17    14   11   8

a) Forecast the demand for Week 9 using a two-period simple moving average.

b) Calculate the MAD for the forecast in part a

c) Forecast the demand for Week 9 using a three-period simple moving average.

d) Calculate the MAD for the forecast in part c.

Solution

a)

b) MAD= 19.5 /2 =9.75

c)

MAD= 16.34 /3 =5.4467