Question: The owner of the Chocolate Outlet Store wants to forecast chocolate demand.
Demand for the preceding four years is shown in the following table:
Forecast demand for Year 5 using the following approaches:
(1) a three-year moving average;
(2) a three-year weighted moving average using .40 for Year 4, .20 for Year 3 and .40 for Year 2;
(3) exponential smoothing with α = .30, and assuming the forecast for Period 1 = 68,000.