Problem 1

The table below shows the last 28 months sales volumes of Company A. Make forecasts for the next SIX months. It is up to the student to pick whatever forecast method fits the case.

1. List the forecasts for the next six months.
2. What approach is used to create the forecast? Why you think this approach is the best choice (be specify)?

Table 1- Sales of Product X in the Last 28 Months

	Month	Sales of product X
1	Apr-17	160
2	May-17	150
3	Jun-17	156
4	Jul-17	190
5	Aug-17	260
6	Sep-17	272
7	Oct-17	80
8	Nov-17	164
9	Dec-17	154
10	Jan-18	160
11	Feb-18	188
12	Mar-18	250
13	Apr-18	270
14	May-18	84
15	Jun-18	168
16	Jul-18	154
17	Aug-18	166
18	Sep-18	192
19	Oct-18	270
20	Nov-18	280
21	Dec-18	74
22	Jan-19	174
23	Feb-19	164
24	Mar-19	196
25	Apr-19	206
26	May-19	288
27	Jun-19	288
28	Jul-19	96

Problem 2 (continued from P1)

Company A wants to build a new facility to cover the forecast demand of Product X in problem 1.

Product X has variable cost = $150 per unit and revenue = $300 per unit.

Based on the forecasting result in Problem 1, find the Fix Cost Value that will result breakeven of the monthly forecasts (there should be six of them). Show your work for credit.

	Fixed Cost that Will Result Break Even Points
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20

Problem 3 (continued from P2)

If the company can outsource the product for the cost of $250 per unit (with the max outsource capacity of 80 units). What would be the optimized capacity plan (hence, students need to make ONE recommendation from the six options of Problem 2)?

Show the analysis to justify your recommendation (explain why your recommendation is the best option).