The mixed form of the systematic component of demand is shown as
A)level × trend × seasonal factor.
B)level + trend + seasonal factor.
C)(level + trend)× seasonal factor.
D)level × (trend + seasonal factor).

Question

Quizplus · Accepted Answer

The mixed form of the systematic component of demand is given by (level + trend) × seasonal factor. This means that the average demand is represented by the sum of a constant level and a linear trend, which are then multiplied by a seasonal factor that captures the fluctuations in demand due to regular calendar events or other periodic factors. This form is commonly used in forecasting models that need to account for both short-term and long-term changes in demand.

The Mixed Form of the Systematic Component of Demand Is