Baruch College data shows that demand for Apps Design 101 has been changing over the last 5 years:

Year Actual Demand

1 5500

2 5700

3 6000

4 5900

5 5300

What is the forecast for year 6 using a 3 years weighted moving average?

The basic EOQ model is quite robust (works reasonably well in many scenarios) because:

		It is quite easy to account for holding and ordering costs
		The flat bottomed total cost curve implies that straying away a little from the EOQ number would notincrease costs significantly
		The assumptions of the basic EOQ model are met reasonably well in most businesses.
		It accounts for variable demand and variable lead time