In: Operations Management
The manager of Alaina's Garden Center must make the annual purchasing plans for rakes, gloves, and other gardening items. One of the items the company stocks is Fast-Grow, a liquid fertilizer. The sales of this item are seasonal, with peaks in the spring, summer, and fall months. Quarterly demand (in cases) for the past two years is as follows:
Quarter |
Year 1 |
Year 2 |
1 |
36 |
56 |
2 |
354 |
407 |
3 |
282 |
315 |
4 |
218 |
316 |
Total |
890 |
1,094 |
If the expected sales for Fast-Grow are
1,264
cases for year 3, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. (Round all intermediate calculations to three decimal places.)
The first quarter forecast is