The following table represents 2019 estimated sales figures for Mthembu’s Motors, a car dealership situated in Durban:
Jan 45
Feb 125
Mar 20
Apr 150
May 12
June 16
July 130
August 25
Sept 33
Oct 160
Nov 48
Dec 37
Jan 2020
Using the data in the table above, calculate the 3 period moving average.
Heizer and Render (2011) describe forecasting as the art of predicting future events. This usually involves taking historical data and projecting them into the future using a mathematical model sometimes adjusted by a manager’s good judgement. It must be noted that what works best in one organisation under one set of conditions may be a complete disaster in another organisation. There are also limits as to what can be expected from forecasts. It must be Remembered that forecasts are seldom, if ever, perfect and are costly and time consuming to prepare and monitor. Give an overview of the qualitative methods of forecasting.
