A BMW car dealer in Sicilia, Italy, has the following monthly new car sales data for January

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A BMW car dealer in Sicilia, Italy, has the following monthly new car sales data for January through December 2014. The dealer believes that new car sales follow a monthly seasonal pattern and computed the seasonal indices for each of the 12 months, which are also given in the following table:

Month 1 4. 10 11 12 New Car Sales SeAsonal Inderes 742 785 990 798 740 830 900 890 1.35 840 720 695 920 O A5 O R5 065 10


1. Plot the car sales data. Does there appear to be a trend?

2. Deseasonalize the actual car sales to isolate the trend component.

3. Develop a linear trend equation using the deseasonalized data.

4. Develop a trend forecast for January and February 2015.

5. Develop a seasonalized forecast for January and February 2015.

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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