Suppose That You Are Using the Four-Period Simple Moving Average

question 18

Multiple Choice

Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been increasing by 40% every period. How will your forecasts perform?

• A) Forecasts will be increasing by 40.0% every period.
• B) Forecasts will be higher than actual.
• C) Forecasts will equal actual.
• D) Forecasts will be decreasing.
• E) Forecasts will be increasing by 10.0% every period.

---

Definitions:

Response Time

The duration taken to react or respond to a request, requirement, or stimulus, crucial in customer service and operational efficiency.

Order Visibility

The ability to track and monitor the progress of orders throughout the supply chain, from placement to delivery.

Time To Market

The duration from the initial concept of a product to its official launch in the market, reflecting a company's efficiency in developing and launching new products.

Product Returnability

The ease with which a product can be returned by the customer to the seller, often a key factor in consumer satisfaction.