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
- A weighted average using 60 for August. 1(t lot July. and 10 for June
- 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?
