Delaplane Computers gets most of its component parts from suppliers in Pacific Rim countries, who ship to the company’s main distribution center near Long Beach, California, where computers are built to order for customers. This type of assembly operation at the company’s distribution center allows it to carry little of its own inventory by pushing inventory down to its suppliers, who provide components as demanded. However, the suppliers also want to minimize their own inventory, and one way to do that is to develop an accurate demand forecast. Following is the demand data (units) from Delaplane fur the past 24 months for one specific supplier who provides the screens for laptops.

Closely observe the demand data and develop a forecast model for year 3 that would be the most accurate for thesupplier.

Transcribed Image Text:

Month January February March April May une Ju August September October November December Year 1 Demand 2,447 1,826 1,755 1,456 1,529 1,633 2,346 3,784 4,106 3,006 2,257 3,212 Year 2 Demand 2,561 1,733 1,693 1,484 1,501 1,655 2,412 4,017 3,886 2,844 2,107 3,415