Hello again, Group 2!

I agree with the group's recommendation. The third alternative (Usage of Trend Analysis) results showed the least MSE making it as the best option as compared to the first two presented alternative courses of actions.

This is just an observation regarding the group’s third alternative courses of action particularly on how the group compared the results of the trend analysis from the last month’s average off take. I noticed that you ‘quantified’ the increase of the quantity by percentage to 21%. I assumed that this percentage pertains to items X1, X2, and X3 since there were no distinctive percentages per item included therein.

My suggestions:

To be more precise if not accurate, I came up with these computations:

Item Name September Trend Analysis(Forecast – pcs)

**Increased by Percentage

Computations

X1 123 147.33 19.8% 123*0.198+123 = 147.35

X2 415 526 26.8% 415*0.268+415 = 526.22

X3 92 120 30.45% 92*0.3045+92 = 120.01

“The suggested order quantity is 19.8% higher, 26.8% higher, and 30.45% higher for items X1, X2, and X3 consecutively as compared to last month’s average off take.”

Note:**If the basis for comparison is from the figures under September.

Thank you very much! ☺

-Isko