Assignment:
Problem: National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:
| Month |
Sales
(000)Units |
| Feb. |
20 |
| Mar. |
16 |
| Apr. |
12 |
| May. |
22 |
| Jun. |
17 |
| Jul. |
21 |
| Aug. |
27 |
Forecast September sales volume using each of the following:
(1) A linear trend equation.
(2) A five-month moving average.
(3) Exponential smoothing with a smoothing constant equal to .50, assuming a March forecast of 20(000).
(4) The naive approach.
(5) A weighted average using .50 for August, .20 for July, and .30 for June.