Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Many services and products experience seasonal fluctuations. Adjusting uniform demand by a seasonal index ratio ean help forecasters to replicate historical fluctuations. By following the

Many services and products experience seasonal fluctuations. Adjusting uniform demand by a seasonal index ratio ean help forecasters to replicate historical fluctuations. By following the seasonal forecasting steps below, you can create a seasonal forecast. Steps 1 and 2 have already been calculated in Table 3. Complete steps 3,4, and 5 by filling in the last three columns of Table 3.
Seasonal forecasting steps
Calculate each seasonal average.
Calculate the overall average for the time horizon.
Calculate each seasonal index ratio by dividing the seasonal average (#1) by the overall average (#2).
Estimate next horizon's total demand. Divide next horizon's total demand by the number of seasons per horizon (uniform forecast).
Calculate the seasonal forecast by multiplying the uniform forecast (#4) by the seasonal index (#3) for each season.
For a creamery, fill in the last three columns of Table 3 if the estimate for ice cream cakes in the next horizon (Year 3) is 500 ice cream cakes.
NOTE: If you are unable to select any of the cells toward the right-hand side of the table, please click on a cell within the same row on the left-hand side of the table and use the 'Tab' key to tab over to the cell you would like to edit.
Table 3. Sales for ice cream cakes
\table[[Quarter,Year 1 Sales,Year 2 Sales,\table[[Quarterly],[Average]],\table[[Overall],[Average]],\table[[Seasonal Indices],[(one decimal place)]],\table[[Uniform Forecast],[(whole number)]]],[Spring,60,140,100,100,,],[Summer,140,220,180,100,,],[Fall,60,100,80,100,,],[Winter,40,40,40,100,,],[Total,300,500,400,,,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmentally Responsible Supply Chains

Authors: Atalay Atasu

1st Edition

331930092X, 978-3319300924

More Books

Students also viewed these General Management questions