Tom’s house of burgers uses a weighted moving average method to forecast burger sales.
It assigns a weight of 5 to the previous month’s demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1,000 burgers in May, 2,200 burgers in June, and 3,000 burgers in July, the sales forecast for august would be burgers will be 2511 burgers.
How to calculate the sales demand?
We have the data:
1000 burgers in May (demand weight of 1) ------1000
2200 burgers in June (demand weight of 3) -----2200 * 3 = 6600
3000 burgers in July (demand weight of 5)------- 3000 * 5 = 15000
Total demand weight = 9
Forecast for August = [tex]\frac{1000+6600+15000}{9} =2511[/tex]
Hence, the sales forecast for august would be burgers will be 2511 burgers.
To learn more about sales forecast, refer to:
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