Create a linear regression forecast for the next two years


Assignent: Customer Qualitative Forecast Memo

Purpose:

The purpose of this assignment is for you to demonstrate how to create a 24 month qualitative forecast. Its expected outcomes should have the student provide an understanding of how a customer's demand is forecasted, assessed and measured for accuracy and customer satisfaction.

Instructions:

Jones Company distributes power supplies used for electronic toys. They have been in business for five years and the past five-year demand for power supply X52 is the following:

Year     Demand
1          12,925
2          17,263
3          22,512
4          28,765
5          31,646

Assume it's January 1 and Jones needs help with developing the forecast for the next two years. Complete the following tasks to help Jones:

Create a 24-month qualitative forecast. You can use a method of your choosing. Make sure you identify the assumptions you relied on and discuss how you developed the forecast.

Create a linear regression forecast for the next two years. MAKE SURE TO SHOW ALL CALCULATIONS FOR FULL CREDIT. Assume your forecast for the first six months of the first year is the following: JAN 2,000; FEB 2,800, MAR 3,200, APR 2,800; MAY 3,500; JUNE 3,300. Also, assume actual customer demand is the following: JAN 2,500; FEB 2,700, MAR 3,000, APR 2,600; MAY 3,200; JUNE 3,000. The acceptable tracking signal target is 1.5. Will you need to update your forecast for Jones? If so when should you do this? MAKE SURE TO SHOW ALL CALCULATIONS FOR FULL CREDIT.

Write a memo summarizing and defining the conclusions drawn in completing your two year linear regression forecast. Your memo is to be addressed to the CEO of Jones Company(Amanda Jones).

Required Elements of the Customer Qualitative Forecast Memo :

Create a 24-month qualitative forecast. You can use a method of your choosing. Make sure you identify the assumptions you relied on and discuss how you developed the forecast.

Create a linear regression forecast for the next two years.

Create a memo summarizing your work, and clearly defining, supporting and explaining the logic used in drawing your conclusions. The memo should be suitable for presentation to the CEO of Jones Company and addressed to same (Amanda Jones). All conclusions must be substantiated by the course material. Use of outside sources is not acceptable.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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Operation Management: Create a linear regression forecast for the next two years
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