1 Compute a 4Quarter moving average forecast for Qtr 3 of Ye

1. Compute a 4-Quarter moving average forecast for Qtr. 3 of Year 5 (round to the nearest unit

2. Compute a 3-Quarter weighted moving average forecast for Quarter 3 of Year 5. Use these weights: 7 on the prior quarter, and then 4 and 1 (respectively) on quarters prior to that (rounded to the nearest unit).

3. Use exponential smoothing method with ? = 0.33 to forecast demand in Quarter 3 of Year 5. Assume Forecast for Q1 of Year 1= 24,850. Round off the final answer to nearest integer.

Solution

Sol(1) For 4-Quarter moving average forecast for Qtr. 3 of year 5 will be 19834

(2) Weighted moving average forecast for Quater 3 of year 5 is given in above table.

(3) Exponential Smothing forecast for given data is also given in table.

(4) After taking absolute diviation among all three methods only we can conclude which one is best.