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Sales of a washing machine at the local Sears store in Huntsville, Texas over the past 4 months have been 130, 120, 110, and 100 units (with 100 units being sales from the MOST recent month). Using the following techniques, make a forecast for the 5th month's sales of washing machines:
Can you think of another forecast (NOT using any of our mathematical techniques) that is probably more accurate than naive, 3 month moving average, and 3 month weighted moving average?
In other words, what would you forecast demand as for the 5th month if you were working for Sears?
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Developing strategies based on possible future scenarios seems to be paying off for PPG Industries.
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