Question

In a time series data, current deseasonalized demand is 12 units, additive trend is 3 units per month and monthly seasonal factor which is multiplicative is 0.5, what is the systematic component? ​

Answer 1

Answer:

Systematic component of demand = 7.5

Step-by-step explanation:

The question relates to demand and forecasting analysis that is used in supply chain domain to predict the overall growth.

According to Winter’s model;

Systematic component of demand = (level + trend) X seasonal factor

According to given information in question we have;

Systematic component of demand = (12 + 3) X 0.5

Systematic component of demand = 7.5