QuestionQuestion

The following equation summarizes the trend portion of quarterly sales of M&MsCandy over a long cycle.

Yt = 560 + 88t

where Yt = Unit sales (000)

t = 0 at the fourth quarter of 2016

a. Using the information given, prepare a forecast of sales for the last quarter of 2017 and the first quarter of 2018.

b. Sales also exhibit seasonal variations (Q1= ?, Q2 = .8, Q3 = .6, Q4 = ?). Seasonally adjusted forecasts for last quarter of 2017 and first quarter of 2018 are 1,368(000) and 1,100(00) respectively. Determine the seasonal relatives for the last quarter of 2017 and the first quarter of 2018.

c. Provide a couple of potential explanations for the seasonal relatives in Q3 and Q4.

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

a. Using the information given, prepare a forecast of sales for the last quarter of 2017 and the first quarter of 2018.

Since Yt = 560 + 88t

Last quarter of 2017 that is t = 4
Yt = 560 + 88*4 = 912

Thus unit sales in the last quarter of 2017 = 912(000)
First Quarter of 2018 means t = 5
then Yt = 560 + 88*5 = 560+440 = 1000(000)...

By purchasing this solution you'll be able to access the following files:
Solution.docx.

$10.00
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Operations Management Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats