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Assignment Question(s): (Marks 5)

Question 2:

An Electronic Company estimates the annual demand for a certain product as follows:

Week	1	2	3	4	5	6
Demand	649	524	561	738	515	598

1. Forecast the demand for week 7 using a five-period moving average? (Marks 1.5) (word count maximum:100)
2. Forecast the demand for week 7 using a three-period weighted moving average. Use the following weights: W1 = .4, W2 = .4, W3 = .2 (Marks 1.5) (word count maximum:100)
3. Forecast the demand for week 7 using exponential smoothing. Use value of .1 and assume the forecast for week 6 was 602 units? (Marks 1.5) (word count maximum:100)
4. What assumptions are made in each of the above forecasts? (Marks 0.5) (word count maximum:150)