Case Study 2. The Liberty Cbok is a bookstore with three locations near the BS University campus. The bookstore has a program to sell personal computers to incoming freshmen and other students at a significant discount. The bookstore just covers computer costs, with a very small profit margin remaining. Orders come in throughout the summer, many only a few weeks before school starts in the fall, and the computer suppliers has a lead time of at least 6 weeks for delivery. Thus, the bookstore must forecast computer demand to build up inventory to meet student demand in the fall. The bookstore has a warehouse near campus where it must store all computers because it has no storage space at its retail locations. The number of computers ordered has effect to the number of temporary warehouses needed and workers who must be hired for handling and PC installations assistance. To get the forecast of computer sales the manager gets the computer purchase program for 14 years. Computer sales have been somewhat unstable. Here is the historical sales data for computers during the 1st month of fall registration: Year Computer sales Year Computer sales 1 518 8 792 2 651 9 877 3 708 10 693 4 921 11 841 5 775 12 1,009 6 810 13 902 7 856 14 1,103 Question: Think of the best forecasting model appropriate for Liberty Cbok to forecast the demand for following fall semester.
Case Study 2.
The Liberty Cbok is a bookstore with three locations near the BS University campus. The bookstore has a program to sell personal computers to incoming freshmen and other students at a significant discount. The bookstore just covers computer costs, with a very small profit margin remaining. Orders come in throughout the summer, many only a few weeks before school starts in the fall, and the computer suppliers has a lead time of at least 6 weeks for delivery. Thus, the bookstore must forecast computer demand to build up inventory to meet student demand in the fall. The bookstore has a warehouse near campus where it must store all computers because it has no storage space at its retail locations. The number of computers ordered has effect to the number of temporary warehouses needed and workers who must be hired for handling and PC installations assistance.
To get the forecast of computer sales the manager gets the computer purchase program for 14 years. Computer sales have been somewhat unstable. Here is the historical sales data for computers during the 1st month of fall registration:
|
Year |
Computer sales |
Year |
Computer sales |
|
1 |
518 |
8 |
792 |
|
2 |
651 |
9 |
877 |
|
3 |
708 |
10 |
693 |
|
4 |
921 |
11 |
841 |
|
5 |
775 |
12 |
1,009 |
|
6 |
810 |
13 |
902 |
|
7 |
856 |
14 |
1,103 |
Question:
- Think of the best
forecasting model appropriate for Liberty Cbok to forecast the demand for following fall semester.
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