Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 8, Problem 14P
Summary Introduction
Interpretation: The actual sales forecasts for November to December using trend projection with regression method
Concept Introduction: Trend refers to data series tendency (increasing or decreasing) in a particular time and
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Students have asked these similar questions
The demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The following table shows the actual sales history for January–October. Generate forecasts for November–December, using the trend projection with regression method. Looking at the accuracy of its forecasts over the history file, as well as the other statistics provided, how confident are you in these forecasts for November–December?
Month
Sales
Month
Sales
January
Februray
March
April
May
June
890,000
800,000
825,000
840,000
730,000
780,000
July
August
September
October
November
December
710,000
730,000
680,000
670,000
The demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The following table shows the actual sales history for January–October. Generateforecasts for November–December, using the trend projection with regression method. Looking at the accuracy of its forecasts over the history file, as well as the other statistics provided, how confident are you in these forecasts for November–December?
The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal variations. Ft = 51 − 4.1t + 3.1t 2 whereFt = Unit sales t = 0 at the first quarter of last year
Quarter
Relative
1
0.95
2
0.95
3
0.45
4
1.65
Click here for the Excel Data File
Using the information given, prepare a forecast of sales for each quarter of next year (not this year), and the first quarter of the year following that. (Round intermediate calculations and final answers to 2 decimal places.)
Chapter 8 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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Ch. 8 - Consider the sales data for Computer Success given...Ch. 8 - A convenience store recently started to carry a...Ch. 8 - Community Federal Bank in Dothan, Alabama,...Ch. 8 - The number of heart surgeries performed at...Ch. 8 - The following data are for calculator sales in...Ch. 8 - Prob. 14PCh. 8 - Forrest and Dan make boxes of chocolates for which...Ch. 8 - The manager of Alaina’s Garden Center must make...Ch. 8 - The manager of a utility company in the Texas...Ch. 8 - Franklin Tooling, Inc., manufactures specialty...Ch. 8 - Create an Excel spreadsheet on your own that can...Ch. 8 - Prob. 20PCh. 8 - Using the data in Problem 20 and the Time-Series...Ch. 8 - Prob. 22PCh. 8 - Cannister, Inc., specializes in the manufacture of...Ch. 8 - The Midwest Computer Company serves a large number...Ch. 8 - A certain food item at P=0.20 (with a combination...Ch. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - A manufacturing firm seeks to develop a better...Ch. 8 - How much does the forecasting process at Deckers...Ch. 8 - Prob. 2VCCh. 8 - What factors make forecasting at Deckers...Ch. 8 - Prob. 4VCCh. 8 - Prob. 5VCCh. 8 - Comment on the forecasting system being used by...Ch. 8 - Develop your own forecast for bow rakes for each...
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