Question

The monthly demand of a company is showed below, please use the static method to forecast the demand for Year 6. Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2,000 3,000 2,000 5,000 5,000 FEB 3,000 4,000 5,000 4,000 2,000 MAR 3,000 3,000 5,000 4,000 3,000 APR 3,000 5,000 3,000 2,000 2,000 MAY 4,000 5,000 4,000 5,000 7,000 JUN 6,000 8,000 6,000 7,000 6,000 JUL 7,000 3,000 7,000 10,000 8,000 AUG 6,000 8,000 10,000 14,000 10,000 SEP 10,000 12,000 15,000 16,000 20,000 OCT 12,000 12,000 15,000 16,000 20,000 NOV 14,000 16,000 18,000 20,000 22,000 DEC 8,000 10,000 8,000 12,000 8,000 Total 78,000 89,000 98,000 115,000 113,000.

Do not use the average method to solve this.

Answer 1

To forecast the demand for Year 6, we can use the static method. This involves finding the average of the sales for each month over the past five years and then using that average to predict the demand for Year 6.

Step-by-step explanation:

To forecast the demand for Year 6, we can use the static method. This method involves finding the average of the sales for each month over the past five years and then using that average to predict the demand for Year 6. We can calculate the average demand by adding up the sales for each month and dividing by 5 (since there are 5 years of data).

For example, to find the forecasted demand for January in Year 6, we add up the sales for January in each of the past five years (2,000 + 3,000 + 2,000 + 5,000 + 5,000) and divide by 5 to get an average of 3,400. We repeat this process for each month to get the forecasted demand for Year 6.

Using this method, we can forecast the demand for Year 6 for each month of the year.