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 |
35 |
63 |
2 |
357 |
478 |
3 |
287 |
348 |
4 |
233 |
287 |
Total |
912 |
1,176 |
If the expected sales for Fast-Grow are
1,224
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.)
Below is the screenshot of the formula applied -
Below is the screenshot of the result -