According to the assigned case study, Best Homes is a new home construction company with headquarters in
Kansas City, Missouri. They construct only residential homes throughout the U.S. and only new homes. Having
started on the East coast in 1945 they expanded to the Midwest and ultimately to the West coast and the South.
They build all types of residential new homes from low-end prices to the high-end of the market. Analyze the
case study and answer the following questions:
1. What forecasting methods should the company consider? Please justify.
2. Use the classical decomposition method to forecast average demand for 2016 by month. What is your forecast
of monthly average demand for 2016?
3. Best Homes is also collecting sales projections from each of its regions for 2016. What role should these
additional sales projections play, along with the forecast from question 2, in determining the final national
forecast
