Sales Month (000 units) Feb. 19 Mar. 18 Apг. May 15 20 Jun. 18 Jul. 22 Aug. 20 a. Plot the monthly data on a sheet of graph paper. b. Forecast September sales volume using each of the following: (1) The naive approach. (2) A five month moving average. (3) A weighted average using .60 for August, .30 for July, and .10 for June. (4) Exponential smoothing with a smoothing constant equal to .20, assuming a a March forecast of 19(000). (5) A linear trend equation. c. Which method seems least appropriate? Why? (Hint: Refer to your plot from part a.) d. What does use of the term sales rather than demand presume?

Sales Month (000 units) Feb. 19 Mar. 18 Apг. May 15 20 Jun. 18 Jul. 22 Aug. 20 a. Plot the monthly data on a sheet of graph paper. b. Forecast September sales volume using each of the following: (1) The naive approach. (2) A five month moving average. (3) A weighted average using .60 for August, .30 for July, and .10 for June. (4) Exponential smoothing with a smoothing constant equal to .20, assuming a a March forecast of 19(000). (5) A linear trend equation. c. Which method seems least appropriate? Why? (Hint: Refer to your plot from part a.) d. What does use of the term sales rather than demand presume?

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

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