Problem 4.26 George Kyparisis owns a company that manufactures sailboats. Actual

Question

Problem 4.26 George Kyparisis owns a company that manufactures sailboats. Actual demand for George's sailboats during each of the past four seasons was as follows Year Season Winter Spring Summer Fall 1,480 1,560 1,040 640 1,280 1,400 2,140 750 1,040 1,600 2,000 690 960 1,580 2,000 520 George has forecasted that annual demand for his sailboats in year 5 will equal 5,600 sailboats Based on the given data and using the multiplicative seasonal model, the demand level for George's sailboats in the spring of year 5 will be silboats (enter a whole number)

Explanation / Answer

Total for winter = 1480+1280+1040+960 = 4760

Total for spring = 1560+1400+1600+1580 = 6140

Total for summer = 1040+2140+2000+2000= 7180

Total for fall = 640+750+690+520= 2600

Total for all weather = 20,680

Average for all years = 20540/16 = 1,292.5

Average for spring = 6140/4 = 1535

Spring index = 1535/1,292.5 = 1.187

Demand for spring year 5 = (5600/4) * 1.187 = 1,661.8 or 1,662 sailboats.

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