Question

The table presents the demand of a product. By simple three months moving average method, the demand-forecast of the product for the month of September is

Month	Demand
January	450
February	440
March	460
April	510
May	520
June	495
July	475
August	560

• A. 510
• B. 536.67
• C. 530
• D. 490

Answer 1

The correct option is A 510

$\text{Three month moving average forecast for month of September.}$

$F_{sep}=\frac{D_{June}+D_{July}+D_{Aug}}{2}=\frac{495+475+560}{3}$

$\text{Forecast for September}=\frac{1530}{3}=510$