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

Month Sales (000 units) 

FPO                            19

Mat                             18

APT                          15

May                            20

Jun                             18

Jul                  22

Aug.                           20

a. PICA the monthly data on a short of graph paper.

b. Forecast September sales volume using each of the follow ing:

(11 The naive approach

(21 A foe-month moving average

  1. A weighted average using 60 for August. 1(t lot July. and 10 for June
  2. Exponential smoothing with a smoothing constant equal to 20. assuming a a March forecast of 1010000

(51 A linear trend equation

c. Which method seems least appropriate? Why? (Hint Refer to your plot mini pan a.)

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