Based on the data below for chocolate demand per week and using the naïve forecasting method, how much you should order for 5th week?

Question

Week1, Time Series Value=10.00
Week2, Time Series Value=16.00
Week3, Time Series Value=6.00
Week4, Time Series Value=18.00

Answer 1

The naïve forecasting method uses the most recent observation as the forecast for the next period. In this case, to forecast the demand for the 5th week, we would use the demand value from the 4th week.

Given the data:

• Week 4 demand = 18.00

Therefore, using the naïve method, you should order 18.00 units for the 5th week.