What does the term sales rather than demand presume


Assignment:

National Scan. Inc.. sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Month    Sales (000 units)
Feb            19
Mar            18
Apr             15
May            20
Jun             18
July             22
Aug             20

a. Plot the monthly data on a sheet of graph paper.

b. Forecast September sales volume using each of the following:

  1. The naive approach.
  2. A five month moving average.
  3. A weighted average using .60 for August, .30 for July, and .10 for June.
  4. Exponential smoothing with a smoothing constant equal to .20. assuming a a March forecast of 19(000).
  5. A linear trend equation.

c. Which method seems least appropriate? Why?

d. What does use of the term sales rather than demand presume?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What does the term sales rather than demand presume
Reference No:- TGS02110310

Expected delivery within 24 Hours