Could someone please explain how to do this? I am doing this problem to learn ho
ID: 1192836 • Letter: C
Question
Could someone please explain how to do this? I am doing this problem to learn how. Thanks
Bobby's diner has estimated demand for pie to be: N =200 + 2X
Where N = pie (monthly demand)
X = time (Mos.) (Mar.2006 = 0)
Month (Adjustment Factor) are as follows: Mar. (+3%), Jun. (+17%), Aug. (+12%), Dec.(-16%)
Forecast demand for pie in Mar., Jun., Aug., and Dec. 2007
Table below shows actual & forecast over 5 years..So, what is the seasonal adjustment factor for forecasting Apr of 2008 pie sales
YR Forecast Actual
2007 420 435
2006 312 289
2005 284 ... 320
2004 215 260
2003 188 210
[5-----8]
Explanation / Answer
adjustment factoe of april 2008 can be the average of the percentage of the difference in actual and forcasted demand
March June August December X (time in months) 12 15 17 21 N = 200+2X 224 230 234 242 Adjustment factor 3% 17% 12% -16% Forcasted demand with adjustment 231 269 262 203