Question: You have been tasked with creating a forecasting model for a product family of sofas at your facility. You are now at the end of

You have been tasked with creating a forecasting model for a product family of sofas at your facility. You are now at the end of Month 36. You searched your demand database and obtained the actual demand for the product family (refer to Table 1 below).

Assignment: Create a linear regression model with seasonality to forecast for Months 37 54.

Submission Requirements:

  1. Type and submit a Word report to the dropbox with the following: (a) a title page & a second page answering the following questions:
  2. What is your regression equation?
  3. What is the Average Seasonal Index for each month (season) of the year? Create a table with your average seasonal indexes (January December).
  4. What are your forecasts for the next 18 months (37 54)? Create a table with your forecasts (Trend + Seasonality Forecasts).

Table 1: Demand Data for Sofa Product Family

Period Month Demand (units)
1 Jan. 1150
2 Feb. 810
3 Mar. 750
4 Apr. 720
5 May 720
6 June 760
7 Jul. 680
8 Aug. 650
9 Sep. 640
10 Oct. 700
11 Nov. 850
12 Dec. 900
13 Jan. 1100
14 Feb. 820
15 Mar. 780
16 Apr. 740
17 May 730
18 June 750
19 Jul. 660
20 Aug. 660
21 Sep. 660
22 Oct. 780
23 Nov. 920
24 Dec. 1280
25 Jan. 1250
26 Feb. 1080
27 Mar. 980
28 Apr. 900
29 May 900
30 June 900
31 Jul. 900
32 Aug. 780
33 Sep. 780
34 Oct. 880
35 Nov. 1170
36 Dec. 1260

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!