Problem 32 National Scan Inc sells radio frequency inventory

Problem 3-2

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

    

   

    

A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)

   

    

A five-month moving average. (Round your answer to 2 decimal places.)

    

    

Exponential smoothing with a smoothing constant equal to .10, assuming a March forecast of 17(000). (Round your intermediate forecast values and final answer to 2 decimal places)

    

   

    

    

A weighted average using .70 for August, .10 for July, and .20 for June. (Round your answer to 2 decimal places.)

     

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Solution

Month Sales Forecasts Constant 1 19 0.1 2 16 17 3 11 16.90 4 25 16.31 5 17 17.18 6 21 17.16 7 25 17.54 Exponential smoothing 18.29 Linear Equation 24 Five month moving average 19.8 Naïve approach forecast 25 Weighted Average forecast 23