Digital Cell Phone, Inc. Case Study

Read Summary

Paul Jordan was given an assignment by his boss to analyze cell phone orders for the past three years and use new planning techniques to project expected orders for the next 6 to 12 months. The methods used for forecasting were regression analysis and seasonal analysis. The linear regression formula was calculated and applied to later months, showing the industry is expected to continue to grow over the next 12 months. Seasonal analysis was also used to adjust the data to seasonal indexes for a more accurate estimate of demand. The purpose of learning these techniques is to provide real-life recommendations for capacity planning in organizations.

Table of Content

Paul Jordan was given the assignment by his supervisor to analyze cell phone orders from the past three years. The goal was to use innovative planning techniques to predict future orders for a period of 6 to 12 months and suggest production recommendations. We chose regression analysis as our approach for forecasting cell phone orders in the upcoming year. Using the data at hand, we developed a linear regression equation and implemented it in the following months.

Based on the linear regression equation, there is an anticipated growth in the cell phone industry over the next 12 months. However, it is advisable for managers in Jordan to remain adaptable when making predictions for individual months. To forecast cell phone orders for the upcoming year, Method II incorporates seasonal analysis. Seasonal variations in data encompass periodic upward and downward shifts within a time series, influenced by recurring factors such as weather conditions or holidays.

Analyzing and adjusting the data to seasonal indexes enables a more accurate estimation of demand for forecasting purposes. In this course, we aim to learn how to utilize linear regression for predicting industry performance and leveraging these calculations to make practical recommendations, similar to what Paul Jordan is mandated to do. Additionally, we seek to acquire proficiency in employing diverse forecasting methods to anticipate industry performance and furnish capacity planning analysis for organizations.

Cite this page

Digital Cell Phone, Inc. Case Study. (2017, Jan 07). Retrieved from

Remember! This essay was written by a student

You can get a custom paper by one of our expert writers

Order custom paper Without paying upfront