Please Please show all the steps thank you National Scan Inc

Please Please show all the steps thank you: National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month Sales (000)Units Feb. 19 Mar. 18 Apr. 15 May 20 Jun. 18 Jul. 22 Aug. 20 Forecast September sales volume using each of the following: (1) The naïve approach (2) A five month moving average (3) A weighted average using .60 for August, .30 for July and .10 for June

Solution

1. as per Navie approach the demand for the month of September is 20 units only. because it considered the most latest demand is estimated as the demand for the current month also. in the example the sales of August is 20 units, and as per Navie method, the demand is same, i.e. 20 units in September also.

2. five month moving average=

(20+22+18+20+15)/5= 95/5= 19 units

3. weighted average=

0.6*20+0.3*22+0.1*18= 12+6.6+1.8= 20.4 units

=20.4 units, it can be rounded as 20 units.