Problem: Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.
Month Actual Demand Month Actual Demand
1 62 7 76
2 65 8 78
3 67 9 78
4 68 10 80
5 71 11 84
6 73 12 85
Problem 1: Calculate the simple three-month moving average for periods 10-12.
Problem 2: Calculate the weighted three-month average using weights of 0.50, 0.30, and 0.20 for periods 10-12.
Problem 3: Calculate the single exponential smoothing forecast for period 10-12 using an initial forecast (F1) of 61 and alpha of 0.30.
Problem 4: Calculate the exponential smoothing with trend component forecast for periods 10-12 using an initial trend forcast (T9) of 1.8, and exponential smoothing forecast (F9) of 60, and alpha of 0.30 and beta of 0.30.