DEMAND FOR FERTILIZER YEAR (1,000S OF BAGS) 1 4 2 6 3 4 4 5 5 10 6 8 7 7 8 9 9 12 10 14 11 15 Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table: Develop a 3-year moving average to forecast demand. Forecast demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1. Develop a trend line for the demand for fertilizer using any computer software.
DEMAND FOR FERTILIZER YEAR (1,000S OF BAGS) 1 4 2 6 3 4 4 5 5 10 6 8 7 7 8 9 9 12 10 14 11 15 Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table: Develop a 3-year moving average to forecast demand. Forecast demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1. Develop a trend line for the demand for fertilizer using any computer software.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
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DEMAND FOR FERTILIZER |
YEAR |
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(1,000S OF BAGS) |
1 |
4 |
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2 |
6 |
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3 |
4 |
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4 |
5 |
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5 |
10 |
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6 |
8 |
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7 |
7 |
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8 |
9 |
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9 |
12 |
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10 |
14 |
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11 |
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15 |
Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table:
- Develop a 3-year moving average to
forecast demand. - Forecast demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1.
- Develop a trend line for the demand for fertilizer using any computer software.
- For these three forecasts, 3-year moving average, a weighted moving average, and a trend line, which one would you use? Explain your answer.
- Use exponential smoothing with a smoothing constant of 0.3 to forecast the demand for fertilizer given. Assume that last period’s forecast for year 1 is 5,000 bags to begin the procedure. Would you prefer to use the exponential smoothing model or the weighted average model developed? Explain your answer.
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