Using the data that follows, compute the seasonal indices for January, February,

Question

Using the data that follows, compute the seasonal indices for January, February, and March using the simple average method. Demand Month 2015 2016 2017 90 80 90 116 96 91 118 138145 96 96 104 January ebruary arch April | 100 108 | 128 115 115 100 une 120 August September October 124 120 105 93 85 95 8083 78 December 1) January: 0.10, February: 0.88, March: 0.92 2) January: 0.97, February: 1.01, March: 0.72 3) January: 0.87. February: 1.08. March: 0.92 4) January: 0.97. February: 088, March: 0.92

Explanation / Answer

Average of Average = (100.67+90.67+95+.............................+83.33+83)/12 = 103.28

Seasonal Index = Month average/Overall average

Jan = 100.67/103.28 = 0.97

Feb = 90.67/103.28 = 0.88

Mar = 95/103.28 = 0.92

Ans: 4

Month 2015 2016 2017 Average Jan 90 96 116     100.67 Feb 80 96 96        90.67 Mar 90 104 91        95.00 Apr 100 108 118     108.67 May 122 138 145     135.00 Jun 120 128 132     126.67 Jul 110 115 124     116.33 Aug 99 115 120     111.33 Sep 93 100 105        99.33 Oct 85 88 95        89.33 Nov 80 83 87        83.33 Dec 88 78 83        83.00

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