Operation Management

3.Weighted Average Method: The Weighted Average Method assigns Certain Importance Factor or Coefficient to each historical Value. Afterward, the forecasted value is calculated by the sum of the amount divided by the weighted data by its amounts. One of the weighted average method's most common types is the simplest method, which attributes the lowest weight to the oldest data in sequential order. Although the simplest method average weighted method is straightforward, assigning the least weight to the oldest data assumes: