Assume that in 2008 the quarterly demands were 10,30,20,and 40.This gives a yearly demand of 100 units.Further,assume that in 2009 the annual demand is expected to increase to 120 units.Then,the model for the second quarter (2ⁿᵈ Q) forecast adjustments would be
A)120(35/100) = 42.
B)120(30/100) = 36.
C)120(20/120) = 20.
D)120(40/150) = 32.

Question

Quizplus · Accepted Answer

To calculate the forecast adjustment for the 2nd quarter of 2009, we can use the average demand percentage increase for the previous year, which is (100/120) = 0.8333 or 83.33%. 
Therefore, the forecast adjustment for the 2nd quarter of 2009 can be calculated as:
30 (Q2 demand in 2008) x 0.8333 = 25
Then, the forecast for the 2nd quarter of 2009 would be:
25 + 30 = 55
So, the answer is B, which is the closest to our calculation.

Assume That in 2008 the Quarterly Demands Were 10,30,20,and 40