Penz, Inc. is a pen manufacturer specializing in colored pens. Located in Denver, CO., Penz has grown successfully over the past few years because of the addition of a new general manager, Kim K. Selling red pens is a major portion of Penz' business, yet Kim was surprised at the lack of forecasts for pens for the company. Kim is determined to get a better idea of how many pens the company should produce with the least amount of excess stock or stockouts. Listed below is a summary of last year's red pen sales by month: Month January February March April May June Red pens Sold 2,200 1,900 1,500 1,200 1,000 400 Month July August September October November December TOTAL Red pens Sold 700 2,275 2,300 1,706 1,410 735 17,326 Assignment: Kim has hired you to determine the best technique for forecasting Penz, Inc. demand of red pens based on the given data.
Penz, Inc. is a pen manufacturer specializing in colored pens. Located in Denver, CO., Penz has grown successfully over the past few years because of the addition of a new general manager, Kim K. Selling red pens is a major portion of Penz' business, yet Kim was surprised at the lack of forecasts for pens for the company. Kim is determined to get a better idea of how many pens the company should produce with the least amount of excess stock or stockouts. Listed below is a summary of last year's red pen sales by month: Month January February March April May June Red pens Sold 2,200 1,900 1,500 1,200 1,000 400 Month July August September October November December TOTAL Red pens Sold 700 2,275 2,300 1,706 1,410 735 17,326 Assignment: Kim has hired you to determine the best technique for forecasting Penz, Inc. demand of red pens based on the given data.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 41P
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