Bell Greenhouses has estimated its monthly demand for potting soil to be the following:
N = 400 + 4X
Where N = monthly demand for bags of potting soil
X = time periods in months (March 2006 = 0)
Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years:
MONTH ADJUSTMENT FACTOR
March .......... +2%
June .......... +15%
August ........ +10%
December ....... ˆ’12%

a. Forecast Bell Greenhouses€™ demand for potting soil in March, June, August, and December 2007.
b. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008forecast.

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YEAR 2007 2006 2005 2004 2003 FORECAST 500 452 404 356 308 ACTUAL 515 438 420 380 320