Problem: Place ponders the comments from Stanton and Adams. She understands Stanton’s concerns about costs and keeping inventory low and Adam’s concern about having enough rakes on hand to make timely shipments. Both are also somewhat concerned about capacity. Yet she decides to check actual customer demand for the bow rake over the past four years (in Table) before making her final report to Roberts.
Questions:
1. Develop your own forecast for bow rakes for each month of the next year (year 5). Justify your forecast and the method you used.