Spencer Boudreau owns a company that manufactures sailboats: Actual demand for S
ID: 3147227 • Letter: S
Question
Spencer Boudreau owns a company that manufactures sailboats: Actual demand for Spencer's sailboats during each of the past two years was as follows. 2) SEASON Year 1,400 1,500 1,000 600 Spencer has forecasted that annual demand for his sailboats in year 3 will equal 5,600 sailboats. Based on this data and the multiplicative seasonal model, what will the demand level be for Spencer's sailboats in Winter Spring Summer Fall 2 1,200 1,400 2,100 750 the spring of year 3? A) 1,450 B) 1,400 C) 1,632 D) 1,244 E) 6,978Explanation / Answer
Given
The actual demand for spencer's sailboats on the problem and also given 3 year demand value is equal to 5600
we have to prove the demand level for Spenser's sailboats in spring of year 3
.Proof:
Let us take first year average quarterly demand
The average of four Quarters in 1 year = 4500 /4
= 1125.
Now,
Seasonal factor for winter= first quarterly / average of 4 quarters
= 1400 / 1125
= 1.244
Seasonal factor for spring = second quarterly / average of 4 quarters
= 1500/1125
= 1.333
Seasonal factor for summer = third quarterly / average of 4 quaters
= 1000/1125
= 0.888
Seasonal factor for fall = forth quarterly / average of 4 quarters
= 600/1125
= 0.533
Now, let us take second year average quarterly demand
The average of 2 year quarterly demand = 5450/4
= 1362.5
Seasonal factor for winter = first quarterly/average of 2 year quarter
= 1200 /1362.5
=0.8807
Seasonal factor for spring = second quarterly/ average of 2 year quarter
= 1400/1362.5
= 1.027
Seasonal factor for summer = third quarterly/average of 2 year quarter
=2100/1362.5
=1.541
Seasonal factor for fall =forthn quarterly/average of 2 year quarter
= 750/1362.5
= 0.550
Now Average Seasonal factor :
The 3rd year total seasonal demand from the problem is 5600
That is
The average for 3rd year seasonal demand = Total value of 3year /4
= 5600 /4
= 1400.
Quarterly forecasts for 3ard year :
The seasonal demand for winter in 3ard year = 1400 *1.062
= 1486.2
The seasonal demand for spring in 3ard year =1400 *1.18
=1652.
The seasonal demand for spring in 3ard year =1400 *1.214
=1699.6
The seasonal demand for spring in 3ard year =1400 *0.541
=757.4
Therefore the seasonal demand for Spencer's sailboats in spring of year 3 =1652.
year 1 season Demand winter 1400 spring 1500 summer 1000 fall 600 Total 4500Related Questions
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