Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: Rock Salt Deliveries (tons) Year 2 Average Monthly Year 1 Year 3 Year 4 Month January 75 76 95 117 90.6 February 48 34 34 52 42.0 March 35 48 12 56 37.8 April 22 34 35 25 29.0 May 6. 12 1 5.3 June 3 2 10 5.0 July 28 33 35 28 31.0 August 145 98 109 120 118.2 September 181 197 162 145 171.1 October 190 201 220 180 197.8 November 100 101 110 98 102.3 December 81 70 87 88 81.6 Total 910 904 913 920 a. Suppose Block Commodities calculated a set of seasonal relatives to express this monthly variation in rock salt deliveries, using this set of data. What would be the value of the seasonal relative for the month of July? What would be the value of the seasonal relative for the month of December? b. Block Commodities believes that this year will be a busy year for rock salt deliveries, forecasting a total of 1,200 tons to be delivered during the year. Using this annual forecast and Block's set of seasonal relatives, what would be a logical forecast for May of next year? What would be a logical forecast for October of next year?
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: Rock Salt Deliveries (tons) Year 2 Average Monthly Year 1 Year 3 Year 4 Month January 75 76 95 117 90.6 February 48 34 34 52 42.0 March 35 48 12 56 37.8 April 22 34 35 25 29.0 May 6. 12 1 5.3 June 3 2 10 5.0 July 28 33 35 28 31.0 August 145 98 109 120 118.2 September 181 197 162 145 171.1 October 190 201 220 180 197.8 November 100 101 110 98 102.3 December 81 70 87 88 81.6 Total 910 904 913 920 a. Suppose Block Commodities calculated a set of seasonal relatives to express this monthly variation in rock salt deliveries, using this set of data. What would be the value of the seasonal relative for the month of July? What would be the value of the seasonal relative for the month of December? b. Block Commodities believes that this year will be a busy year for rock salt deliveries, forecasting a total of 1,200 tons to be delivered during the year. Using this annual forecast and Block's set of seasonal relatives, what would be a logical forecast for May of next year? What would be a logical forecast for October of next year?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Block Commodities has gathered the following information concerning rock salt
deliveries to its clients, which it believes are highly seasonal:
Rock Salt Deliveries (tons)
Year 2
Average
Monthly
Year 1
Year 3
Year 4
Month
January
75
76
95
117
90.6
February
48
34
34
52
42.0
March
35
48
12
56
37.8
April
22
34
35
25
29.0
May
6.
12
1
5.3
June
3
2
10
5.0
July
28
33
35
28
31.0
August
145
98
109
120
118.2
September
181
197
162
145
171.1
October
190
201
220
180
197.8
November
100
101
110
98
102.3
December
81
70
87
88
81.6
Total
910
904
913
920
a. Suppose Block Commodities calculated a set of seasonal relatives to express this
monthly variation in rock salt deliveries, using this set of data. What would be
the value of the seasonal relative for the month of July? What would be the value
of the seasonal relative for the month of December?
b. Block Commodities believes that this year will be a busy year for rock salt deliveries,
forecasting a total of 1,200 tons to be delivered during the year. Using this annual
forecast and Block's set of seasonal relatives, what would be a logical forecast for
May of next year? What would be a logical forecast for October of next year?
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