Seasonal Indices of Inventory Data

Seasonal Indices of Inventory Data - Running head: SEASONAL...

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Running head: SEASONAL INDICES OF INVENTORY DATA 1 Seasonal Indices of Inventory Data Juan Hernández, Ubaldo Portillo, Salvador Herrera QRB 501 March 21, 2011 Antonio Woo
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SEASONAL INDICES OF INVENTORY DATA 2 Seasonal Indices of Inventory Data Table 1 contains the raw data for the four years in 12 months. Additional columns and rows were added to calculate additional variables that can help identify a seasonal index and which are the busy and slow months in the four year period. In addition, to properly forecast inventory and expenses, yearly trends will be identified by using the slope-intercept formula. Analyzing the data will help identify where we need to increase and decrease staffing based on inventory needs. In addition, by identifying trends, it will help determine the best way to expense manage production and employee productivity. The first step was to get the averages by year and month. To get the average by year, the totals for each column were added and divided by 12, which are the number of months. To calculate the average by month, the totals were added across and divided by 4, which are the number of years. A grand mean was calculated by averaging the column Averages, which totaled 42,348. The grand mean was necessary to acquire to get the index for each month. The formula for index by month is to divide the average by month by the grand mean. For year one, the equation is 39,600/42,348 = .93511. To gain the percent seasonal index, each monthly index
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Seasonal Indices of Inventory Data - Running head: SEASONAL...

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