Question

In: Operations Management

A sporting store has recorded its recent sales as follows. Season 2 years ago Last year...

A sporting store has recorded its recent sales as follows.

Season

2 years ago

Last year

This year

Spring

700

950

900

Summer

450

500

400

Fall

1,150

1,100

1,350

Winter

1,400

1,500

1,600

The company estimated that the annual demand for the next year will be 4,800. What would be the forecast for next Fall?

Select one:

a. 1,000

b. 1,200

c. 1,920

d. 1,440

e. 1,600

Solutions

Expert Solution

Answer: d.1440

Explanation:

Seasonal Average = Average Seasonal Demand over last years

Total Yearly Demand = Demand per year = Sum of demand for all season for a particular year

Grand Total = Sum of total yearly demand

Overall Average = Average demand per season over last 3 years = Grand Total /12

Seasonal Index = Seasonal Average/Overall Average

Seasonal Forecast for next year = Seasonal Index*annual demand for next year/4

Seasonal Forecast for fall = 1.2*4800/4 = 1440

Formula:

keosha answered 1 year ago
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