Problem:
Present three forecasts, one that would result from the use of each of the following approaches (show all formulas):
Calculate the appropriate naïve approach and list two or more advantages of using this approach.
Compute a five-period moving average and list two or more advantages of using this approach.
Compute a weighted average using the four most recent periods with weights assigned as follows: .40 (most recent), .30, .20, and .10 and list one or more advantages of using this approach.
The owner of a bakery has the following demands for chocolate chip cookies per day (Period: Number of Demands):
1: 112
2: 136
3: 122
4: 139
5: 118
6: 137
7: 125
8: 141