schools, and agencies within a 25-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months:MonthJan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct.Orders110 120 90 97 150 90 95 110 90 90a. Compute the monthly demand forecast for October using a 3-month moving average.b. Compute the monthly demand forecast for October using a 4-month moving average.c. Compute the monthly demand forecast for October using a 3-month weighted moving average. Use weights of 0.50, 0.30, and 0.20, with the heavier weights on the more recent months.d. Which method would you use to forecast demand for October based on MAD?e. What would be October?s estimate using a simple regression model?
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