Discuss the below:
Q1: Heavy Metal Manufacturing (HMM) has achieved average quarterly sales (in units) over the last four years as shown in the table below. HMM ships their products to Asia in Cargo freighters that must be negotiated and contracted at the beginning of the year to minimize costs.
They are trying to decide how many sea shipments that they expect to need throughout the coming year.
Quarter Demand(units) 4-year
Average
Q1 685000
Q2 715000
Q3 750000
Q4 700000
Using all of the data, calculate the indices for the following quarters:
Q2: HMM Managers expect the total demand to be 3, 200,000 units next year. Based on the indices calculated above, how many shipments are required each quarter if a cargo ship can hold 40,000 units at a time?