Assume that in 2008 the quarterly demands were 10,30,20,and 40.This gives a yearly demand of 100 units.Further,assume that in 2009 the annual demand is expected to increase to 120 units.Then,the first quarter (1ˢᵗ Q) forecast adjustments would be
A)120(40/100) = 48.
B)120(20/100) = 24.
C)120(10/100) = 12.
D)all of the above

Question

Quizplus · Accepted Answer

The first quarter forecast adjustment is calculated by taking the proportion of the first quarter's demand in 2008 (10 units) relative to the total demand in 2008 (100 units) and applying it to the expected annual demand for 2009 (120 units). Thus, 120 * (10/100) = 12.

Assume That in 2008 the Quarterly Demands Were 10,30,20,and 40