An electronics company is interested in forecasting the quarterly sales for next year for one of its
Question:
An electronics company is interested in forecasting the quarterly sales for next year for one of its products. Based on the past sales data, they found that the quarterly sales have seasonality and two forecasting methods look promising:
1. Four-quarter moving average with seasonality 2. Last value method with seasonality The seasonality indices have been computed as 0.93, 0.9, 0.99, and 1.18 for quarters 1, 2, 3, and 4, respectively. The actual sales for this year for quarters 1, 2, 3, and 4 are 6992, 6822, 7949, and 9690, respectively.
a. Determine the deseasonalized forecasts for quarters 1, 2, 3, and 4 for next year by both forecasting methods.
b. Determine the actual forecasts for quarters 1, 2, 3, and 4 for next year by both forecasting methods.
Step by Step Answer:
Service Systems Engineering And Management
ISBN: 978-0367781323
1st Edition
Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu