If a product has a monthly demand forecast of 800 units and a January monthly index of 1.25, what is the seasonally-adjusted sales forecast for January?

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To determine the seasonally-adjusted sales forecast, the demand forecast needs to be multiplied by the seasonal index for January. In this case, the monthly demand forecast is 800 units and the January monthly index is 1.25.

The calculation is straightforward:

  • Seasonally-adjusted sales forecast = Monthly demand forecast × Monthly index
  • Seasonally-adjusted sales forecast = 800 units × 1.25
  • Seasonally-adjusted sales forecast = 1000 units

Therefore, the seasonally-adjusted sales forecast for January is 1000 units. This approach allows businesses to account for seasonal variations in demand, providing a more accurate representation of sales expectations during specific periods.