A manager of a home improvement store has been using the linear trend multiplicative model to predict

Question:

A manager of a home improvement store has been using the linear trend multiplicative model to predict the demand for his lawn mowers. The quarterly seasonal indices are S1= 0.85, S2= 0.90, S3= 1.10, and S4= 1.00. The linear trend equation that the manager developed is: Yt= 15 + 6t. The following lawn mower sales have been observed for the most recent nine quarters:

5 6 7 24 Quarter 4 3 8 36 38 45 Sales 18 33 40 42 32 12 10 2.


Comment on the effectiveness of the forecasting method used by the manager of the store.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

Question Posted: