(i) Name the factors to be considered while chosing a good forecasting system.
(ii) The quarterly demand of a company product for past six years is given in the table below. The four-quarter moving average is also given. Find the seasonality index for 3rd quarter.
|
Year
|
Quarter
|
Demand
´ 105 units
|
Four-Quarter
Moving Average
|
|
1
|
Q1
Q2
Q3
Q4
|
0.5
0.8
2.1
0.1
|
0.875
0.925
1.025
|
|
2
|
Q1
Q2
Q3
Q4
|
0.8
1.1
2.4
0.1
|
1.1
1.1
1.125
1.15
|
|
3
|
Q1
Q2
Q3
Q4
|
0.9
1.0
2.8
0.1
|
1.25
1.25
1.20
1.15
|
|
4
|
Q1
Q2
Q3
Q4
|
0.7
1.0
2.6
0.1
|
1.10
1.10
1.125
1.125
|
|
5
|
Q1
Q2
Q3
Q4
|
0.8
1.0
2.5
0.1
|
1.10
1.10
1.15
1.20
|
|
6
|
Q1
Q2
Q3
Q4
|
1.0
1.2
2.7
0.2
|
1.25
1.275
|