Hello there I need really need a solution for ML Manufacturi

Hello there, I need really need a solution for M&L Manufacturing, CASE, Questions, pg .(130) Operations Management, 11th Edition William, Steven. (2). Prepare a weekly forecast for the next four weeks for each product. Briefly explain why you chose the methods you used. (Hint: For product 2, a simple approach, possibly some sort of naive/intuitive approach, would be preferable to a technical approach in view of the manager\'s didain of more technical methods.)

Solution

Answer :-

Forecasting is telling the possible future value or future demand about a service or a need so the provider can manage their resources properly. Forecasting means planning ahead to avoid delay of service and inconveniencing the customers. This is done by sales people who makes forecasts on how many units of product needs to be produced at a certain period of time based on some variables that they are considering like the price, the season and the market. Forecasting also helps the company decides on the right amount of money that needs to be prepared, the cash flow, the inventory and the number of units to be made available at a certain period of time. With forecasting, there will be a more ease when distributing services avoiding any possible shortages or possible over supply. If the forecast is correct, then this possible scenarios can be avoided. With the right amount of product being produced to match the need in the market, inventory problems will be avoided.

weekly forecast :-

Week     Product 1       Computation          Product 2
15          100         (3.457 x 15 + 48.28)         44
16          104         (3.457 x 16 + 48.28)         44
17          107         (3.457 x 17 + 48.28)         44
18          111         (3.457 x 18 + 48.28)         44

Time series is the method that I guess I can use to forecast the next event with the numbers provided above. The data I have is for a set of 14 weeks and it is a data sale. The result will appear as:
Sales = 3.457*week + 48.28

The following 4 weeks data will be forecasted with the formula given above hence week 15-18 is being forecasted based on the information we currently have. With the regression line, it shows how the demand for the product has been steadily increasing.

Considering all other information like the work environment and other management factors, the data for the next 4 weeks are being forecasted as follows.