# Cannister, Inc. specializes in the manufacture of plastic containers. The data on the monthly sales of 10-ounce

## Question:

Cannister, Inc. specializes in the manufacture of plastic containers. The data on the monthly sales of 10-ounce shampoo bottles for the past five years are as follows:

a. Using the multiplicative seasonal method, calculate the monthly seasonal indices.

b. Develop a simple linear regression equation to forecast annual sales. For this regression, the dependent variable, V is the demand in each year and the independent variable. X is the index for the year (i.e. X = 1 for year 1, X =2 for year 2. and so on until X 5 for year 5).

c. Forecast the annual sales for year 6 by using the regression model you developed in part (b).

d. Prepare the seasonal forecast for each month by using the monthly seasonal indices calculated in part(a).

## Step by Step Answer:

**Related Book For**

## Operations management processes and supply chain

**ISBN:** 978-0136065760

9th edition

**Authors:** Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra