Problem:
National Scan, Incorporated sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: (Refer to Chapter 11)
|
Month
|
Sales (in 000 units)
|
|
April
|
52
|
|
May
|
58
|
|
June
|
66
|
|
July
|
65
|
|
August
|
61
|
|
September
|
59
|
|
October
|
60
|
Required:
Question 1) Prepare a 2-month, 3-month, and 4-month moving average forecast for November sales.
Question 2) Each forecasting method has advantages and disadvantages. Under what conditions would moving average forecast offer the most potential for a successful forecast?
Solve the given numerical problem and illustrate step by step calculation.