1 answer

Demand for a certain product is forecast to be 800 units per month, averaged over all...

Question:

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally -adjusted sales forecast for January?

1000 units 801.25 units 640 units 83.33 units 798.75 units


Answers

1. A. 1000 UNITS

SEASONAL INDEX = DEMAND IN A PARTICULAR SEASON / AVERAGE DEMAND IN ALL THE SEASONS

THEREFORE, USING THE FORMULA WE CAN SAY THAT:

FORECAST FOR THE NEXT PERIOD = SEASONAL INDEX * DEMAND

= 1.25 * 800 = 1000 UNITS

**PLEASE RATE THE ANSWER

.

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