operation management

| December 3, 2015

Montly usage data for pallets used in a distribution center are as follows:
Year 1 2 3 4
Jan 1484 1482 1792 1902
Feb 1394 1400 1586 1722
Mar 1552 1548 1770 1876
April 1796 1864 2110 2218
May 2060 2198 2408 2548
June 2214 2446 2652 2844
July 2330 2580 2606 2972
Aug 2432 2698 2872 3110
Sept 2416 2682 2946 3208
Oct 2262 2592 2906 3200
Nov 1942 2132 2340 2806
Dec 1566 1802 2046 2418

a.) calculate the montly usage index for each month.

b.) Use simple linear regression to forecast total usage of pallets for year 5.

c.) forecast the seasonality adjusted usage for pallets for each month in year 5.

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