Question: We assumed in our simulation that on the first day demand was for 8 units instead of 4 , Rita would interprete the increase as

We assumed in our simulation that on the first day demand was for 8 units instead of 4, Rita would interprete the increase as a one time increase and that demand would return to 4 units tomorrow.
Suppose we had assumed instead that the first day demand was for 8 units Rita would use a 2-Period Moving Average Model to determine demand forecast values for day 6,7 and 8.
1. Given a Day 4 demand of 4 and a day 5 demand of 8, if Rita determined forecast values using a 2-period moving average model, what demand forecast values would Rita use for day 6,7 and 8? Answer 1 Question 7
2. If Rita uses these 2-period moving average model forecast values, what is the Day 8 buffer stock requirement? Answer 2 Question 7
units
3. Assuming Rita uses a 2-Period Moving Average Forecast Value for the demand forecast values for day 6,7 and 8 and maintains her belief that future incoming shipments will be equal to their associated order amounts (her previous orders were all for 4 units), how much should Rita order on Day 5? Answer 3 Question 7
units

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