Example
Example 1: Basic Simple Moving Average (SMA) Forecast
A manufacturing plant wants to forecast the demand for a specific component for Month 6 using a 3-month Simple Moving Average. The actual demand for the past 5 months was:
- Month 1: 120 units
- Month 2: 135 units
- Month 3: 150 units
- Month 4: 145 units
- Month 5: 160 units
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Example
Example 2: Intermediate Weighted Moving Average (WMA) Forecast
Using the same data from Example 1, calculate a 3-month Weighted Moving Average forecast for Month 6. Assign a weight of 0.5 to the most recent month, 0.3 to the month before that, and 0.2 to the oldest month in the 3-month period.
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Example
Example 3: Advanced Exponential Smoothing Forecast
A software company is forecasting monthly active users. For May, the forecasted users were 50,000, but the actual users were 55,000. Using an exponential smoothing constant () of 0.3, forecast the users for June.
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Example
Example 4: Strategic vs. Tactical vs. Operational Planning
A multinational construction firm sets a long-term goal to become carbon-neutral by 2040. Classify the following plans as Strategic, Tactical, or Operational.
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