Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 8, Problem 14P
Summary Introduction
Interpretation: The actual sales forecasts for November to December using trend projection with regression method
Concept Introduction: Trend refers to data series tendency (increasing or decreasing) in a particular time and
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The demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The following table shows the actual sales history for January–October. Generate forecasts for November–December, using the trend projection with regression method. Looking at the accuracy of its forecasts over the history file, as well as the other statistics provided, how confident are you in these forecasts for November–December?
Month
Sales
Month
Sales
January
Februray
March
April
May
June
890,000
800,000
825,000
840,000
730,000
780,000
July
August
September
October
November
December
710,000
730,000
680,000
670,000
The demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The following table shows the actual sales history for January–October. Generateforecasts for November–December, using the trend projection with regression method. Looking at the accuracy of its forecasts over the history file, as well as the other statistics provided, how confident are you in these forecasts for November–December?
4
Chapter 8 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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