User Account

All Pages

Develop a trend projection with regression solution

Assignment Help Business Management
Reference no: EM132998380

The Midwest Computer Company serves a large number of businesses in the Great Lakes region. The company sells supplies and replacements and performs service on all computers sold through seven sales offices. Many items are stocked, so close inventory control is necessary to assure customers of efficient service. Recently, business has been increasing, and management is concerned about stockouts. A forecasting method is needed to estimate requirements several months in advance to estimate requirements several months in advance so that adequate replenishment quantities can be purchased. An example of the sales growth experienced during the last 50 months is the growth in demand for item EP-37, a laser printer cartridge, shown in Table 3.

Month / EP-37 Sales / Leases / Month / EP-37 Sales / Leases

1 / 80 / 32 / 26 / 1296 / 281
2 / 132 / 29 / 27 / 1199 / 298
3 / 143 / 32 / 28 / 1267 / 314
4 / 180 / 54 / 29 / 1300 / 323
5 / 200 / 53 / 30 / 1370 / 309
6 / 168 / 89 / 31 / 1489 / 343
7 / 212 / 74 / 32 / 1499 / 357
8 / 254 / 93 / 33 / 1669 / 353
9 / 397 / 120 / 34 / 1716 / 360
10 / 385 / 113 / 35 / 1603 / 370
11 / 472 / 147 / 36 / 1812 / 386
12 / 397 / 126 / 37 / 1817 / 389
13 / 476 / 138 / 38 / 1798 / 399
14 / 699 / 145 / 39 / 1873 / 409
15 / 545 / 160 / 40 / 1923 / 410
16 / 837 / 196 / 41 / 2028 / 413
17 / 743 / 180 / 42 / 2049 / 439
18 / 722 / 197 / 43 / 2084 / 454
19 / 735 / 203 / 44 / 2083 / 441
20 / 838 / 223 / 45 / 2121 / 470
21 / 1057 / 247 / 46 / 2072 / 469
22 / 930 / 242 / 47 / 2262 / 490
23 / 1085 / 234 / 48 / 2371 / 496
24 / 1090 / 254 / 49 / 2309 / 509
25 / 1218 / 271 / 50 / 2422 / 522

For part a), it is believed that sales is a function of time; please use Excel for both parts a) and b).

a) Develop a trend projection with regression solution using Excel. Forecast demand for month 51.

b) A consultant to Midwest's management suggested that new office building leases would be a good leading indicator for company sales. The consultant quoted a recent university study finding that new office building leases preced office equipment and supply sales by 3 months. According to the study findings, leases in month 1 would affect sales in month 4, leases in month 2 would affect sales in month 5, and so on. Use Excel's linear regression module to develop a forecasting model for sales, with leases as the independent variable. Forecast sales for month 51.

c) Which of the two models provides better forecasts? Explain.

Reference no: EM132998380

Questions Cloud

How many work in process accounts will use : If a company uses a process costing system to account for costs in its four production departments, how many Work in Process accounts will it use?
New revenue sources for professional teams : Identify ways that sports teams can now monetize their digital assets nationally, including both sponsorship and fan revenue generation digital tactics.
Determine required rate of return on amazon common stock : Determine the required rate of return (kj) on Amazon.com common stock before and after the expected increase in inflation. See data for the appropriate beta.
Assignment on leadership and change : There are a number or organizations today that have become successful by adopting a new style of business. Common examples include:
Develop a trend projection with regression solution : a) Develop a trend projection with regression solution using Excel. Forecast demand for month 51.
Determine the contribution margin ratio for harry company : Harry Company sells 19,000 units at $39 per unit. Determine the contribution margin ratio, the unit contribution margin, and operating income.
What the number of equivalent units for materials for period : What the number of equivalent units for materials for the period is? Plum, Inc., uses the FIFO process costing method to determine the product unit.
Selecting a potential target market for export : Explain the criteria to be assessed when selecting a potential target market for export.
Which entities probably would use a process costing system : Which entities probably would use a process costing system? Which Product costs appear on the income statement in the form of?

Reviews

Write a Review

Business Management Questions & Answers

  Explain the advantages of the globalization of finance

Explain the advantages and disadvantages of the globalization of finance. How did it contribute to the global financial crisis?

  Compute the value of the test statistic

A random sample of eight observations from the first population resulted in a standard deviation of 10. A random sample of six observations from the second popu

  Lowest probability of a correct guess

1. In the final round of a TV game show, contestants have a chance to increase their current winnings of $ 1 million dollars to 2 million dollars. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right..

  Process of globalization

How is the "process of globalization" different today than in 2000? Name three historical milestones since 9/11 that have changed the course of globalization.

  Working on teams attractive to house keeping employees

What is the answer of second question what could Joanne do to gain employee buy-in and support? How might she be able to make working on the teams attractive to house keeping employees?

  Identify key stakeholders and their values

Identify key stakeholders and their values and powers in relation to the chosen scenario, and how will you manage the power of these stakeholders.

  How did you go about making the decision

SEC 390- How did you go about making the decision? Apply the steps of the decision-making process. Critique your decision approach. What were the strengths and weaknesses?

  Provide a brief description of the selected manuscript.

Provide a brief description of the selected manuscript. Identify the selection criteria and methods, and discuss how they relate to the needs of the organization in the case. Include an analysis of the criteria and method s used for selecting the emp..

  Demand and cost conditions

1). Consider an industry wherein the demand and cost conditions are given as follows: Market demand P = 120 - Q.

  Express as a linear programming model

Express as a linear programming model. Use excel and solve this problem to attain the lowest-cost shipping schedule. What is the smallest shipping cost?

  Based on your analysis should lincoln electric expand

If yes, discuss whether they should do so through an acquisition, greenfield site, or joint venture.

  Table of contents page for a club sports manual

Develop a table of contents page for a club sports manual. This should provide all information a club would need to operate and expand.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd