Forecasting with Indices

Forecasting with Indices

Forecasting with indices permits the viewer to review information in numerical format as well as with a chart. In doing so, the viewer can better understand the information that is presented. A better understanding means that better decisions can be made for the individual or the individual’s company. Forecasting is a means of permitting a company to make informed decisions about the future. When a company can make informed and educated decisions about the future and start strategies the company can try to stay ahead of the competition. Here one can review the summer historical inventory data presented by the University of Phoenix and see the forecasted inventory units for year five.

Summer Historical Data

Actual Demand in Units

Month Year 1 Year 2 Year 3 Year 4 Sum Forecast

1 18000 45100 59800 35500 158400 39600

2 19800 46530 30740 51250 148320 37080

3 15700 22100 47800 34400 120000 30000

4 53600 41350 73890 68000 236840 59210

5 83200 46000 60200 68100 257500 64375

6 72900 41800 55200 61100 231000 57750 Average all years 42348.96

7 55200 39800 32180 62300 189480 47370

8 57350 64100 38600 66500 226550 56637.5

9 15400 47600 25020 31400 119420 29855

10 27700 43050 51300 36500 158550 39637.5

11 21400 39300 31790 16800 109290 27322.5

12 17100 10300 31100 18900 77400 19350