Ch. 3 Problems (Complete And Verified Study material) (6pages) LEARNEXAMS

2. National Scan Inc., sells radio frequency inventory tags. Monthly sales for a sevenmonth period were as follows:

Month

Sales

(000 units)

Feb 19

Mar 18

Apr 15

May 20

Jun 18

Jul 22

Aug 20

a. Plot the monthly data on a sheet of graph paper.

Feb Mar Apr May Jun Jul Aug

0

5

10

15

20

25

RFI Tag Sales

Month

Units

b. Forecast September sales volume using each of the following:

1) The naïve approach

2) A five-month moving average.

F8= 95/5= 19

September Forecast= 19