Compute the seasonal index for each quarter


Discuss the below in detail:

Q: Suppose the sales for J's Clothing Corp. are shown in the table below.

Season

Demand of J's Clothing (unit: thousand)

Average

Quartely
Demand by

Season

Overall Average Demand

Seasonalty

Index

2012

2013

2014

2015

2016

 

 

 

Winter

450

480

580

520

?

 

 

?

Spring

390

410

520

560

?

 

 

 

Summer

540

610

680

730

?

 

 

?

Fall

640

650

720

680

2

 

 

2

SUM =

 

 

 

 

 

 

 

 

Now assume there is seasonality. Utilizing all the data below, use seasonality indexing as explained in class, to estimate the sales for each of the four quarters of 2016. We assume the total annual demand of J's clothing in 2016 is 2, 800 (unit:1000) or 2, 800,000. First compute the seasonal index for each quarter and make forecasts for 2016 using them.

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Operation Management: Compute the seasonal index for each quarter
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