Joe Kool has decided to use the 3-month weighted moving
average method for one of his companys products. Last years monthly sales
data are given in Table 2.11.
Joe is trying to decide the appropriate weights to select
for his forecasting method that will minimize the sum of the absolute errors
between the forecasts and the actual values. Show that the determination of the
optimal weights can be formulated as an LP problem. Solve the linear program
using any optimization software and determine the forecast for month 13.