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Psychological Science
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The online version of this article can be found at:
DOI: 10.1177/0956797612457392
2013 24: 112 originally published online 12 November
2012Psychological Science
David R. Kille, Amanda L. Forest and Joanne V. Wood
Tall, Dark, and Stable : Embodiment Motivates Mate Selection
Preferences
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Psychological Science
24(1) 112 –114
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DOI: 10.1177/0956797612457392
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Can the qualities people desire in a mate shift according to
the stability or instability of their physical state? In this investi -
gation, we examined whether physical instability motivates
people to seek partners who provide a sense of psychological
stability—for instance, by demonstrating reliability. Theories of
embodied cognition propose that knowledge is stored in mem-
ory as multimodal representations, and these representations
can include information about bodily states (for a review, see
Barsalou, 2008). For example, the concept “bed” might include
information about one’s sleeping posture, so the bodily state of
lying down may activate cognitions related to “bed,” and vice
versa. Research on embodied cognition has shown that bodily
states affect people’s perceptions of others; in one study, hold-
ing a warm—rather than a cold—drink led participants to per-
ceive another person as interpersonally warmer (Williams &
Bargh, 2008). Given such findings, we expected that experienc-
ing physical instability—a common, but unstudied, somatic
experience—would activate the construct of instability more
generally and would affect participants’ perceptions, leading
them to interpret other people’s romantic relationships as rela -
tively unstable. We further hypothesized that the experience of
physical instability would affect not only people’s perceptions
(cognitions) but also their preferences, which reflect underlying
motivational concerns (Higgins, 2012, chap. 2).
Bowlby (1988) proposed that the attachment system
evolved to provide infants with a sense of safety and security,
especially in stressful times. As Ainsworth demonstrated
(1979), infants left in an uncertain environment seek out their
caregivers, who provide a sense of security and stability.
Because adult relationships have also been shown to serve as a
source of security (Collins & Feeney, 2000), we hypothesized
that adults who experience physical instability will, like infants
who encounter an uncertain environment, seek security from
relationship partners and will therefore be attracted to poten-
tial romantic partners who promise psychological stability
(Chappell & Davis, 1998).
Note that we made opposing predictions for perceptions
and preferences: We expected that physical instability would
lead people to perceive less stability in other people’s relation-
ships, but to prefer more stability-promoting traits in their own
potential relationship partners. Broadly speaking, we extended
embodied-cognition research by (a) studying the effects of
physical instability; (b) examining preferences for potential
mates, in response to researchers’ call for important and
“action-
relevant” outcomes (Meier, Schnall, Schwarz, & Bargh, 2012,
p. 711); and (c) distinguishing between cognitive and motiva-
tional effects.
Method
Forty-seven romantically unattached undergraduates (25 men,
22 women; mean age = 21.08 years) were randomly assigned
to either a physically unstable condition or a physically stable
condition. In the physically unstable condition, participants sat
at a slightly wobbly table and chair: The wobble was achieved
by shortening two of the chair’s nonadjacent legs by approxi -
mately ¼ in. and securing a small pebble to the bottom of one
table leg. In the physically stable condition, participants sat at
an identical, but stable, table and chair. We administered
demographic and filler questionnaires to ensure that partici -
pants had experienced the furniture’s instability (or stability)
before they completed the dependent measures.
To determine whether physical instability—like other
somatic cues (e.g., warmth)—can affect people’s perceptions,
we asked participants to judge other people’s relationship sta-
bility. Participants rated the likelihood that the marriages of
four well-known couples (e.g., Barack and Michelle Obama:
married 19 years, two children) would break up in the next 5
years (1 = extremely unlikely to dissolve, 7 = extremely likely
to dissolve). We reverse-scored and averaged responses to cre-
ate an index of perceived stability (α = .60).
Participants indicated their preferences for various traits in
a potential romantic partner (1 = not at all desirable, 7 =
extremely desirable). We included traits that would provide a
sense of psychological stability (trustworthy, reliable) or
instability (spontaneous, adventurous), as well as traits with
less relevance to instability (loving, good with money, funny,
supportive). Pilot testing (n = 27), and a linear contrast,
Corresponding Author:
David R. Kille, Department of Psychology, University of
Waterloo, 200
University Ave. West, Waterloo, Ontario, Canada N2L 3G1
E-mail: [email protected]
Tall, Dark, and Stable: Embodiment
Motivates Mate Selection Preferences
David R. Kille, Amanda L. Forest, and Joanne V. Wood
University of Waterloo
Received 3/27/12; Revision accepted 6/17/12
Short Report
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Embodiment Motivates Mate Preferences 113
confirmed that the stability traits were perceived as providing
more psychological stability, safety, and security (1 = rela-
tively unstable, 9 = relatively stable) than the stability-neutral
traits, which were, in turn, rated as providing more stability
than the instability traits (stability traits: M = 8.23, SD = 1.30;
stability-neutral traits: M = 7.51, SD = 1.31; instability traits:
M = 4.50, SD = 1.67), F(1, 26) = 101.81, p < .001. We reverse -
scored the instability-trait items and created two composites:
preference for stability traits (vs. instability traits; α = .50) and
preference for stability-neutral traits (α = .65). Finally, we
assessed participants’ moods (e.g., annoyed, happy; 1 = not at
all, 9 = a great deal).
Results
A one-way analysis of variance (ANOVA) revealed that, as
predicted, participants in the physically unstable condition
perceived less stability in other people’s relationships (M =
4.80, SD = 1.12) than did participants in the physically stable
condition (M = 5.55, SD = 0.84), F(1, 43) = 6.28, p = .016,
ηp
2 = .13 (Fig. 1). These results suggest that physical instabil-
ity activates the concept of instability more broadly.
More important, physical instability affected preferences:
A one-way ANOVA revealed that participants in the physi-
cally unstable condition reported a greater desire for stability
traits in a partner (M = 5.00, SD = 0.78) than did participants
in the physically stable condition (M = 4.38, SD = 0.72), F(1,
45) = 8.18, p = .006, ηp
2 = .15 (see Fig. 1). No differences
between conditions emerged in preference for stability-neutral
traits, F < 1, or in mood, except that participants in the physi -
cally unstable condition felt happier than participants in the
physically stable condition, F(1, 40) = 4.44, p = .041, ηp
2 =
.10. Two analyses regressing preferences and perceptions onto
happiness and condition indicated that happiness was unre-
lated to either outcome (ts < 1).
Discussion
Our study confirms that subtle bodily experiences affect not
only people’s perceptions of others, but also their preferences in
others: Participants who experienced physical instability per -
ceived less stability in other people’s relationships and desired
more stability in their own potential partners than did partici -
pants who did not experience such instability. Moreover, pilot
testing suggested that participants in the physically unstable
condition did not simply prefer more positive traits; using a
Likert-type scale (1 = relatively negative/undesirable/not very
fun, 9 = relatively positive/desirable/very fun), 24 participants
rated the traits in the stability composite as being marginally
less positive (M = 7.19, SD = 0.94) than the traits in the
stability-
neutral composite (M = 7.44, SD = 0.81), t(23) = 1.89, p = .071.
Consequently, we concluded that physical instability altered
participants’ motivation to seek psychological stability rather
than their motivation to seek positively valenced traits.
Mate selection is often viewed as a process that reflects
long-term goals rather than in-the-moment psychological
needs. The present study suggests that mate preferences may
shift with transient bodily states created by the physical envi -
ronment. By examining the important outcome of preferences
in mate selection (Meier et al., 2012), this study extends previ -
ous findings suggesting that the physical world can affect pref-
erences for movie genres (Hong & Sun, 2012) and cleansing
products (Zhong & Liljenquist, 2006). We suspect that previ -
ously studied physical states may also motivate mate selec-
tion: For example, given that physical dirtiness is linked to
moral impurity (see Lee & Schwarz, 2011), examining dating
profiles in a physically dirty environment might motivate peo-
ple to seek out moral puritans. Additionally, because perceived
power is associated with feeling tall (Duguid & Goncalo,
2012), feeling short—as when seated in a lowered chair—
could increase the attractiveness of high-status mates.
Our results also suggest that embodied cues can affect
motivation, because participants’ preferences (for stability)
likely reflected their goals (to achieve stability). Insofar as
goals and motivational states are represented as cognitive
structures (Kruglanski et al., 2002), those structures should be
represented—much like any other cognition—through senso-
rimotor information (Barsalou, 2008). Indeed, we suspect that
one reason cognition may become embodied is to ensure that
one’s needs—which may arise from physical states—are met
through goal pursuit. Embodied motivation, then, is a fruitful
avenue for future research.
Acknowledgments
The authors thank Vanessa K. Bohns, Richard P. Eibach, and
John G.
Holmes for their invaluable comments on an earlier draft, and
Alix
Collins and Lindsay Stehouwer for their assistance in
conducting this
research.
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
Perceptions of Stability Preference for Stability
R
at
in
g
Physically Stable Condition
Physically Unstable Condition
Fig. 1. Mean perception of other people’s relationship stability
and
mean preference for stability (vs. instability) traits in a
potential mate as
a function of physical stability condition. Error bars represent
standard
errors of the mean.
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114 Kille et al.
Declaration of Conflicting Interests
The authors declared that they had no conflicts of interest with
respect to their authorship or the publication of this article.
Funding
This research was supported by a Social Sciences and
Humanities
Research Council of Canada grant awarded to Joanne V. Wood.
References
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moving averageFile name: best homesUse this worksheet to
analyze the best homes case study.The data is entered into 60
rows. One row for each month.The forecasting model can be
entered into the columns.1Jan 118402Feb 118803Mar
1111204Apr 1112005May 1111206Jun
111120122001016.77July 111080122801023.38Aug
111000126001050.09Sept 11960128401070.010Oct
111000130001083.311Nov 11920132801106.712Dec
11960135201126.713Jan 12920137601146.714Feb
121200140001166.715Mar 121360142401186.716Apr
121360144001200.017May 121400146001216.718Jun
121360147601230.019July 121320151201260.020Aug
121240153601280.021Sept 121200156401303.322Oct
121160160001333.323Nov 121120162001350.024Dec
121120165601380.025Jan 131280165601380.026Feb
131440165601380.027Mar 131640166001383.328Apr
131720168801406.729May 131600170401420.030Jun
131720171601430.031July 131320172001433.332Aug
131240171601430.033Sept 131240170801423.334Oct
131440169201410.035Nov 131280170401420.036Dec
131240168401403.337Jan 141320169201410.038Feb
141400171201426.739Mar 141560173601446.740Apr
141560174401453.341May 141720174001450.042Jun
141520175601463.343July 141400178001483.344Aug
141440182001516.745Sept 141480184801540.046Oct
141520188401570.047Nov 141240190001583.348Dec
141400192401603.349Jan 15156019560Moving50Feb
151800197601646.751Mar 151840196801640.052Apr
151920197201643.353May 151880199201660.054Jun
151760200401670.055July 15172056Aug 15164057Sept
15140058Oct 15156059Nov 15144060Dec 15152061Jan
1662Feb 1663Mar 1664Apr 1665May 1666Jun 1667July
1668Aug 1669Sept 1670Oct 1671Nov 1672Dec 16
DATA
2201120122013201420151Jan8409201,2801,3201,5602Feb8801,
2001,4401,4001,8003Mar1,1201,3601,6401,5601,8404Apr1,200
1,3601,7201,5601,9205May1,1201,4001,6001,7201,8806Jun1,12
01,3601,7201,5201,7607July1,0801,3201,3201,4001,7208Aug1,
0001,2401,2401,4401,6409Sept9601,2001,2401,4801,40010Oct1
,0001,1601,4401,5201,56011Nov9201,1201,2801,2401,44012De
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DATA1Jan 11840Jan 12920Jan 131280Jan 141320Jan
1515602Feb 11880Feb 121200Feb 131440Feb 141400Feb
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1518404Apr 111200Apr 121360Apr 131720Apr 141560Apr
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15144012Dec 11960Dec 121120Dec 131240Dec 141400Dec
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12112025Jan 13128026Feb 13144027Mar 13164028Apr
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13124037Jan 14132038Feb 14140039Mar 14156040Apr
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15164057Sept 15140058Oct 15156059Nov 15144060Dec
151520
DATA AND MOV AVG & FORECASTFile name: best
homesUse this worksheet to analyze the best homes case
study.The worksheet provides only the data from the case
study.The data is entered into 60 rows. One row for each
month.The forecasting model can be entered into the
columns.MONTHSALESMOV. AVG.MOV AVG FCTADJ
FCSTSeas fact.1Jan 118401840937.80.962Feb
118802880950.31.103Mar 11112031120962.71.204Apr
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111120611201000.11.167July 111080710801012.51.048Aug
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1110001010001049.81.0011Nov 11920119201062.30.8912Dec
119601220010171296010171074.70.9113Jan
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12120014240118721120011871186.70.9722Oct
12116014400120022116012001199.11.0023Nov
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12112014760123024112012301224.00.9125Jan
13128015120126025128012601236.50.9626Feb
13144015360128026144012801248.91.1027Mar
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13172016000133328172013331273.81.2229May
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13132016560138031132013801311.11.0432Aug
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13124016600138333124013831336.00.9734Oct
13144016880140734144014071348.41.0035Nov
13128017040142035128014201360.90.8936Dec
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14132017200143337132014331385.80.9638Feb
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14156017080142339156014231410.61.2040Apr
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15152020040167060152016701671.90.9161Jan
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1669691783.916830.9470Oct 1670701796.317780.9971Nov
1671711808.815990.8872Dec 1672721821.216540.91
DATA AND MOV AVG & FORECAST
SALES
MOV. AVG.
Moving Average 12 Preceding Months
MODEL WITH MOV AVG PAST 12 MONT
SALES
MOV. AVG.
MOV AVG FCT
ADJ FCST
FCST CHART PRE 12 MOV AVG
FCST CHART PRE 12 MOV
AVG112233445566778899101011111212131314141515161617
17181819192020212122222323242425252626272728282929303
03131323233333434353536363737383839394040414142424343
44444545464647474848494950505151525253535454555556565
757585859596060
SALES
MOV. AVG.
MONTH
SALES
Moving Average 12 Preceding Months
840
880
1120
1200
1120
1120
1080
1000
960
1000
920
960
1016.6666666667
920
1023.3333333333
1200
1050
1360
1070
1360
1083.3333333333
1400
1106.6666666667
1360
1126.6666666667
1320
1146.6666666667
1240
1166.6666666667
1200
1186.6666666667
1160
1200
1120
1216.6666666667
1120
1230
1280
1260
1440
1280
1640
1303.3333333333
1720
1333.3333333333
1600
1350
1720
1380
1320
1380
1240
1380
1240
1383.3333333333
1440
1406.6666666667
1280
1420
1240
1430
1320
1433.3333333333
1400
1430
1560
1423.3333333333
1560
1410
1720
1420
1520
1403.3333333333
1400
1410
1440
1426.6666666667
1480
1446.6666666667
1520
1453.3333333333
1240
1450
1400
1463.3333333333
1560
1483.3333333333
1800
1516.6666666667
1840
1540
1920
1570
1880
1583.3333333333
1760
1603.3333333333
1720
1630
1640
1646.6666666667
1400
1640
1560
1643.3333333333
1440
1660
1520
1670
SEAS FACT PRE 12 MON
SEAS FACT PRE 12
MON111122223333444455556666777788889999101010101111
11111212121213131313141414141515151516161616171717171
81818181919191920202020212121212222222223232323242424
24252525252626262627272727282828282929292930303030313
13131323232323333333334343434353535353636363637373737
38383838393939394040404041414141424242424343434344444
44445454545464646464747474748484848494949495050505051
51515152525252535353535454545455555555565656565757575
75858585859595959606060606161616162626262636363636464
64646565656566666666676767676868686869696969707070707
171717172727272
SALES
MOV. AVG.
MOV AVG FCT
ADJ FCST
MONTH
SALES
SALES
840
937.842
880
950.284
1120
962.726
1200
975.168
1120
987.61
1120
1000.052
1080
1012.494
1000
1024.936
960
1037.378
1000
1049.82
920
1062.262
960
1016.6666666667
1074.704
920
1023.3333333333
1087.146
1200
1050
1099.588
1360
1070
1112.03
1360
1083.3333333333
1124.472
1400
1106.6666666667
1136.914
1360
1126.6666666667
1149.356
1320
1146.6666666667
1161.798
1240
1166.6666666667
1174.24
1200
1186.6666666667
1186.682
1160
1200
1199.124
1120
1216.6666666667
1211.566
1120
1230
1224.008
1280
1260
1236.45
1440
1280
1248.892
1640
1303.3333333333
1261.334
1720
1333.3333333333
1273.776
1600
1350
1286.218
1720
1380
1298.66
1320
1380
1311.102
1240
1380
1323.544
1240
1383.3333333333
1335.986
1440
1406.6666666667
1348.428
1280
1420
1360.87
1240
1430
1373.312
1320
1433.3333333333
1385.754
1400
1430
1398.196
1560
1423.3333333333
1410.638
1560
1410
1423.08
1720
1420
1435.522
1520
1403.3333333333
1447.964
1400
1410
1460.406
1440
1426.6666666667
1472.848
1480
1446.6666666667
1485.29
1520
1453.3333333333
1497.732
1240
1450
1510.174
1400
1463.3333333333
1522.616
1560
1483.3333333333
1535.058
1800
1516.6666666667
1547.5
1840
1540
1559.942
1920
1570
1572.384
1880
1583.3333333333
1584.826
1760
1603.3333333333
1597.268
1720
1630
1609.71
1640
1646.6666666667
1622.152
1400
1640
1634.594
1560
1643.3333333333
1647.036
1440
1660
1659.478
1520
1670
1671.92
1684.362
1598.7781551894
1696.804
1810.4340301673
1709.246
2041.5152651716
1721.688
2103.0829536886
1734.13
2078.8168146371
1746.572
2018.7880053067
1759.014
1842.3147790313
1771.456
1756.3106596366
1783.898
1683.181456021
1796.34
1778.3230973659
1808.782
1598.932448282
1821.224
1653.6084309713
ActualMOV AVGActualMOV AVGActualMOV
AVGActualMOV AVGActualMOV AVGSEAS.
FAC20112012201320142015SEA FACSEA FACSEA FACSEA
FAC1Jan8409380.909201087.10.851,2801,236.51.041,3201,385.
80.951,5601,5351.024.750.952Feb8809500.931,2001099.61.091
,4401,248.91.151,4001,398.21.001,8001,5481.165.331.073Mar1
1209631.161,3601112.01.221,6401,261.31.301,5601,410.61.111
,8401,5601.185.971.194Apr12009751.231,3601124.51.211,7201
,273.81.351,5601,423.11.101,9201,5721.226.111.225May11209
881.131,4001136.91.231,6001,286.21.241,7201,435.51.201,880
1,5851.195.991.206Jun11201,000.11.121,3601149.41.181,7201,
298.71.321,5201,448.01.051,7601,5971.105.781.167July10801,
012.51.071,3201161.81.141,3201,311.11.011,4001,460.40.961,7
201,6101.075.241.058Aug10001,024.90.981,2401174.21.061,24
01,323.50.941,4401,472.80.981,6401,6221.014.960.999Sept960
1,037.40.931,2001186.71.011,2401,336.00.931,4801,485.31.001
,4001,6350.864.720.9410Oct10001,049.80.951,1601199.10.971,
4401,348.41.071,5201,497.71.011,5601,6470.954.950.9911Nov
9201,062.30.871,1201211.60.921,2801,360.90.941,2401,510.20.
821,4401,6590.874.420.8812Dec9601,074.70.891,1201224.00.9
21,2401,373.30.901,4001,522.60.921,5201,6720.914.540.9112,0
7513,86715,65917,45019,242
Best Homes, Inc.: Forecasting
Best Homes is one the largest builders of new residential homes
in U.S. with 20,040 new homes built in 2015. The case presents
monthly sales data from 2011 to 2015. This data is
representative of home builders since we estimated the sales of
Best Homes based on a 4% market share of the total sales of
new homes in the U.S. from the U.S. Census web site. Thus the
trend and seasonality are in line with U.S. home sales in total.
The case explains the problem facing Best Homes in terms of
annual planning and the S&OP process. Forecasting is put in
the context of how the forecast will be used. Also, sales
projections are being gathered from the field, and the case asks
students to reconcile those with the forecasts based on historical
data.
Questions for the case
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?
I hope this helps
If not we can have an adobe session with your team tomorrow
Sunday April 12, 2020 or any other time that is convenient
Regards,
Santosh Sambare
Best Homes, Inc.: Forecasting
Background
Best Homes is a new home construction company based in
Kansas City, Missouri. They build only residential and new
homes throughout the United States. They have expanded the
Midwest and the West coast and to the south, starting in 1945
the East coast. They build all types of new residential housing,
from low-end to high-end housing in the market. Best Homes
was a private company until 1958 when the initial public
offering began. The company started small but expanded to one
of the largest home builders in the United States. The case
presents monthly sales data from 2011 to 2015. This data is
representative of home builders since we estimated the sales of
Best Homes based on a 4% market share of the total sales of
new homes in the U.S. from the U.S. Census web site. Thus,
the trend and seasonality are in line with U.S. home sales in
total. The case explains the problem facing Best Homes in terms
of annual planning and the S&OP process. Forecasting is put in
the context of how the forecast will be used. Also, sales
projections are being gathered from the field, and the case asks
students to reconcile those with the forecasts based on historical
data. Best Homes competes on the basis of their outstanding
brand reputation. Their reputation is gained by building quality
houses at competitive prices. The cost per square foot of the
house is comparable to that of its competitors, but its design
and interior finish are excellent. This provides an advantage
that competitors can't find. Show after completion of the
building, including the installation of inner walls, floors,
windows, siding, cabinets and timber works, to provide a
beautiful home. Use part-time or contract for other parts that are
not marked upon completion. However, workers who perform
foundations, rough walls, roofs, wiring and piping. In each of
these areas, however, they employ more than 60 percent of ful l-
time workers. All new employees, part-time or contract
employees are assigned full-time employees and receive quality
control training for their work during the first six months.
Objective
Financing uses this to forecast the company's overall revenue
and to prepare estimates of revenue and balance sheet forecasts
along with quarterly income estimates. Marketing uses monthly
forecasts to plan sales forecasts, employment plans, sales
incentives and sales targets. Operations and supply chains use
forecasts for sales and operational planning (S & OP) planning
processes. S & OP is performed for annual forecasts and
updated monthly to coordinate sales forecasts and resulting
employment plans for new, contracted and part-time employees.
Along with the expected dismissal. Each month, the S & OP
process starts with an updated rolling forecast every 12 months.
The employment plan and the start of housing construction are
then set up next month and planned for the next three months.
The plan also includes a purchase plan for materials used in
construction. Housing. Monthly updates may require adjusting
both the capacity and inventory of new homes. All features,
including finance, marketing, sales, operations, and HR,
participate in the S & OP process. The first part of the planning
process is to predict the demand for new homes every month.
Shows the number of detached houses built by Best Homes
every month. This data is a forward forecast for all of 2016.
Predicting average monthly demand alone in the future is not
enough. Actual demand may be significantly higher or lower
than average. As a result, you should also predict standard or
average absolute deviations. The monthly production level of
the new house is set to average demand. In addition, if demand
exceeds the average, secure a safe inventory of new homes.
With three months of lead time to build a new house, all
inventory and production levels should expect three months of
lead time. This shows an important prediction for both
predictions.
1. What forecasting methods should the company consider?
Please justify.
· The company should use time series method
· It suitable for not much data and based on seasonal patterns
· According to the calculation the 12 months moving average.
· The advantages of this method are easy to understand, and the
moving average can smooth the estimate that makes the
company see the trend.
· The moving average can be calculated by using the previous
sale and calculate the average.
1
Jan 11
840
2
Feb 11
880
3
Mar 11
1120
4
Apr 11
1200
5
May 11
1120
6
Jun 11
1120
7
July 11
1080
8
Aug 11
1000
9
Sept 11
960
10
Oct 11
1000
11
Nov 11
920
12
Dec 11
960
12200
1017
13
Jan 12
920
12280
1023
14
Feb 12
1200
12600
1050
15
Mar 12
1360
12840
1070
16
Apr 12
1360
13000
1083
17
May 12
1400
13280
1107
18
Jun 12
1360
13520
1127
19
July 12
1320
13760
1147
20
Aug 12
1240
14000
1167
21
Sept 12
1200
14240
1187
22
Oct 12
1160
14400
1200
23
Nov 12
1120
14600
1217
24
Dec 12
1120
14760
1230
25
Jan 13
1280
15120
1260
26
Feb 13
1440
15360
1280
27
Mar 13
1640
15640
1303
28
Apr 13
1720
16000
1333
29
May 13
1600
16200
1350
30
Jun 13
1720
16560
1380
31
July 13
1320
16560
1380
32
Aug 13
1240
16560
1380
33
Sept 13
1240
16600
1383
34
Oct 13
1440
16880
1407
35
Nov 13
1280
17040
1420
36
Dec 13
1240
17160
1430
37
Jan 14
1320
17200
1433
38
Feb 14
1400
17160
1430
39
Mar 14
1560
17080
1423
40
Apr 14
1560
16920
1410
41
May 14
1720
17040
1420
42
Jun 14
1520
16840
1403
43
July 14
1400
16920
1410
44
Aug 14
1440
17120
1427
45
Sept 14
1480
17360
1447
46
Oct 14
1520
17440
1453
47
Nov 14
1240
17400
1450
48
Dec 14
1400
17560
1463
49
Jan 15
1560
17800
1483
50
Feb 15
1800
18200
1517
51
Mar 15
1840
18480
1540
52
Apr 15
1920
18840
1570
53
May 15
1880
19000
1583
54
Jun 15
1760
19240
1603
55
July 15
1720
19560
1630
56
Aug 15
1640
19760
1647
57
Sept 15
1400
19680
1640
58
Oct 15
1560
19720
1643
59
Nov 15
1440
19920
1660
60
Dec 15
1520
20040
1670
61
Jan 16
62
Feb 16
63
Mar 16
64
Apr 16
65
May 16
66
Jun 16
67
July 16
68
Aug 16
69
Sept 16
70
Oct 16
71
Nov 16
72
Dec 16
2. Use the classical decomposition method to forecast average
demand for 2016 by month. What is your forecast of monthly
average demand for 2016?
· As a result, the blue trend is a sale forecast and the orange
trend is calculated sale with the 12 months moving average
· The linear function from the sale itself is y = 11.758x+1003.4
where r-square is 0.5888
· The linear function from 12 months moving average is
12.442x+925.28 where r-square is 0.9504
· R-square can describe How accurate of the function which has
value between 0-100%
· When we compare the 12 months average r-square with the
sale r-square the 12 months average r-square is more accurate
· The company should use 12 months moving average function
y=12.442x+925.28 where x is a month order start from January
2011 to forecast monthly average demand for 2016
X
Month
MOV AVG FCT
61
Jan 16
1684.4
62
Feb 16
1696.8
63
Mar 16
1709.2
64
Apr 16
1721.7
65
May 16
1734.1
66
Jun 16
1746.6
67
July 16
1759.0
68
Aug 16
1771.5
69
Sept 16
1783.9
70
Oct 16
1796.3
71
Nov 16
1808.8
72
Dec 16
1821.2
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?
Year
2011
2012
2013
2014
2015
2016
Moving average total
12075
13867
15659
17450
19242
21034
Growth rate
15%
13%
11%
10%
9%
· The sale growth rate has dropped since 2012. If the company
focus only number of sales which is growth overtime will start
to lose market competitive.
· This comparison of growth rate will lead to discussion of
developing the company’s marketing, operation, finance, and
human resource.
· However, the sale projection from all region will help
assuming the overall demand forecast it help to manage the
reasonable inventory which can prevent over operation cost and
inventory cost.
Moving Average 12 Preceding Months
SALES
1 2 3 4 5 6 7 8 9 10 11 12 13
14 15 16 17 18 19 20 21 22 23 24 25
26 27 28 29 30 31 32 33 34 35 36 37
38 39 40 41 42 43 44 45 46 47 48 49
50 51 52 53 54 55 56 57 58 59 60
840 880 1120 1200 1120 1120 1080 1000 960 1000 920
960 920 1200 1360 1360 1400 1360 1320 1240 1200 1160
1120 1120 1280 1440 1640 1720 1600 1720 1320 1240 1240
1440 1280 1240 1320 1400 1560 1560 1720 1520 1400 1440
1480 1520 1240 1400 1560 1800 1840 1920 1880 1760 1720
1640 1400 1560 1440 1520 MOV. AVG.
1 2 3 4 5 6 7 8 9 10 11 12 13
14 15 16 17 18 19 20 21 22 23 24 25
26 27 28 29 30 31 32 33 34 35 36 37
38 39 40 41 42 43 44 45 46 47 48 49
50 51 52 53 54 55 56 57 58 59 60
1016.6666666666666 1023.3333333333334 1050
1070 1083.3333333333333 1106.6666666666667
1126.6666666666667 1146.6666666666667
1166.6666666666667 1186.6666666666667 1200
1216.6666666666667 1230 1260 1280
1303.3333333333333 1333.3333333333333 1350
1380 1380 1380 1383.3333333333333
1406.6666666666667 1420 1430 1433.3333333333333
1430 1423.3333333333333 1410 1420
1403.3333333333333 1410 1426.6666666666667
1446.6666666666667 1453.3333333333333 1450
1463.3333333333333 1483.3333333333333
1516.6666666666667 1540 1570 1583.3333333333333
1603.3333333333333 1630 1646.6666666666667
1640 1643.3333333333333 1660 1670
MONTH
SALES
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httppss.sagepub.comPsychological Science httppss

  • 1. http://pss.sagepub.com/ Psychological Science http://pss.sagepub.com/content/24/1/112 The online version of this article can be found at: DOI: 10.1177/0956797612457392 2013 24: 112 originally published online 12 November 2012Psychological Science David R. Kille, Amanda L. Forest and Joanne V. Wood Tall, Dark, and Stable : Embodiment Motivates Mate Selection Preferences Published by: http://www.sagepublications.com On behalf of: Association for Psychological Science can be found at:Psychological ScienceAdditional services and information for
  • 2. http://pss.sagepub.com/cgi/alertsEmail Alerts: http://pss.sagepub.com/subscriptionsSubscriptions: http://www.sagepub.com/journalsReprints.navReprints: http://www.sagepub.com/journalsPermissions.navPermissions: What is This? - Nov 12, 2012OnlineFirst Version of Record - Jan 11, 2013Version of Record >> at OhioLink on February 14, 2013pss.sagepub.comDownloaded from http://pss.sagepub.com/ http://pss.sagepub.com/content/24/1/112 http://www.sagepublications.com http://www.psychologicalscience.org/ http://pss.sagepub.com/cgi/alerts http://pss.sagepub.com/subscriptions http://www.sagepub.com/journalsReprints.nav http://www.sagepub.com/journalsPermissions.nav http://pss.sagepub.com/content/24/1/112.full.pdf http://pss.sagepub.com/content/early/2012/11/09/095679761245 7392.full.pdf
  • 3. http://online.sagepub.com/site/sphelp/vorhelp.xhtml http://pss.sagepub.com/ Psychological Science 24(1) 112 –114 © The Author(s) 2013 Reprints and permission: sagepub.com/journalsPermissions.nav DOI: 10.1177/0956797612457392 http://pss.sagepub.com Can the qualities people desire in a mate shift according to the stability or instability of their physical state? In this investi - gation, we examined whether physical instability motivates people to seek partners who provide a sense of psychological stability—for instance, by demonstrating reliability. Theories of embodied cognition propose that knowledge is stored in mem- ory as multimodal representations, and these representations can include information about bodily states (for a review, see Barsalou, 2008). For example, the concept “bed” might include information about one’s sleeping posture, so the bodily state of lying down may activate cognitions related to “bed,” and vice versa. Research on embodied cognition has shown that bodily states affect people’s perceptions of others; in one study, hold- ing a warm—rather than a cold—drink led participants to per- ceive another person as interpersonally warmer (Williams & Bargh, 2008). Given such findings, we expected that experienc- ing physical instability—a common, but unstudied, somatic experience—would activate the construct of instability more generally and would affect participants’ perceptions, leading them to interpret other people’s romantic relationships as rela - tively unstable. We further hypothesized that the experience of physical instability would affect not only people’s perceptions (cognitions) but also their preferences, which reflect underlying motivational concerns (Higgins, 2012, chap. 2).
  • 4. Bowlby (1988) proposed that the attachment system evolved to provide infants with a sense of safety and security, especially in stressful times. As Ainsworth demonstrated (1979), infants left in an uncertain environment seek out their caregivers, who provide a sense of security and stability. Because adult relationships have also been shown to serve as a source of security (Collins & Feeney, 2000), we hypothesized that adults who experience physical instability will, like infants who encounter an uncertain environment, seek security from relationship partners and will therefore be attracted to poten- tial romantic partners who promise psychological stability (Chappell & Davis, 1998). Note that we made opposing predictions for perceptions and preferences: We expected that physical instability would lead people to perceive less stability in other people’s relation- ships, but to prefer more stability-promoting traits in their own potential relationship partners. Broadly speaking, we extended embodied-cognition research by (a) studying the effects of physical instability; (b) examining preferences for potential mates, in response to researchers’ call for important and “action- relevant” outcomes (Meier, Schnall, Schwarz, & Bargh, 2012, p. 711); and (c) distinguishing between cognitive and motiva- tional effects. Method Forty-seven romantically unattached undergraduates (25 men, 22 women; mean age = 21.08 years) were randomly assigned to either a physically unstable condition or a physically stable condition. In the physically unstable condition, participants sat at a slightly wobbly table and chair: The wobble was achieved by shortening two of the chair’s nonadjacent legs by approxi - mately ¼ in. and securing a small pebble to the bottom of one
  • 5. table leg. In the physically stable condition, participants sat at an identical, but stable, table and chair. We administered demographic and filler questionnaires to ensure that partici - pants had experienced the furniture’s instability (or stability) before they completed the dependent measures. To determine whether physical instability—like other somatic cues (e.g., warmth)—can affect people’s perceptions, we asked participants to judge other people’s relationship sta- bility. Participants rated the likelihood that the marriages of four well-known couples (e.g., Barack and Michelle Obama: married 19 years, two children) would break up in the next 5 years (1 = extremely unlikely to dissolve, 7 = extremely likely to dissolve). We reverse-scored and averaged responses to cre- ate an index of perceived stability (α = .60). Participants indicated their preferences for various traits in a potential romantic partner (1 = not at all desirable, 7 = extremely desirable). We included traits that would provide a sense of psychological stability (trustworthy, reliable) or instability (spontaneous, adventurous), as well as traits with less relevance to instability (loving, good with money, funny, supportive). Pilot testing (n = 27), and a linear contrast, Corresponding Author: David R. Kille, Department of Psychology, University of Waterloo, 200 University Ave. West, Waterloo, Ontario, Canada N2L 3G1 E-mail: [email protected] Tall, Dark, and Stable: Embodiment Motivates Mate Selection Preferences David R. Kille, Amanda L. Forest, and Joanne V. Wood University of Waterloo Received 3/27/12; Revision accepted 6/17/12
  • 6. Short Report at OhioLink on February 14, 2013pss.sagepub.comDownloaded from http://pss.sagepub.com/ Embodiment Motivates Mate Preferences 113 confirmed that the stability traits were perceived as providing more psychological stability, safety, and security (1 = rela- tively unstable, 9 = relatively stable) than the stability-neutral traits, which were, in turn, rated as providing more stability than the instability traits (stability traits: M = 8.23, SD = 1.30; stability-neutral traits: M = 7.51, SD = 1.31; instability traits: M = 4.50, SD = 1.67), F(1, 26) = 101.81, p < .001. We reverse - scored the instability-trait items and created two composites: preference for stability traits (vs. instability traits; α = .50) and preference for stability-neutral traits (α = .65). Finally, we assessed participants’ moods (e.g., annoyed, happy; 1 = not at all, 9 = a great deal). Results A one-way analysis of variance (ANOVA) revealed that, as predicted, participants in the physically unstable condition perceived less stability in other people’s relationships (M = 4.80, SD = 1.12) than did participants in the physically stable condition (M = 5.55, SD = 0.84), F(1, 43) = 6.28, p = .016, ηp 2 = .13 (Fig. 1). These results suggest that physical instabil- ity activates the concept of instability more broadly. More important, physical instability affected preferences:
  • 7. A one-way ANOVA revealed that participants in the physi- cally unstable condition reported a greater desire for stability traits in a partner (M = 5.00, SD = 0.78) than did participants in the physically stable condition (M = 4.38, SD = 0.72), F(1, 45) = 8.18, p = .006, ηp 2 = .15 (see Fig. 1). No differences between conditions emerged in preference for stability-neutral traits, F < 1, or in mood, except that participants in the physi - cally unstable condition felt happier than participants in the physically stable condition, F(1, 40) = 4.44, p = .041, ηp 2 = .10. Two analyses regressing preferences and perceptions onto happiness and condition indicated that happiness was unre- lated to either outcome (ts < 1). Discussion Our study confirms that subtle bodily experiences affect not only people’s perceptions of others, but also their preferences in others: Participants who experienced physical instability per - ceived less stability in other people’s relationships and desired more stability in their own potential partners than did partici - pants who did not experience such instability. Moreover, pilot testing suggested that participants in the physically unstable condition did not simply prefer more positive traits; using a Likert-type scale (1 = relatively negative/undesirable/not very fun, 9 = relatively positive/desirable/very fun), 24 participants rated the traits in the stability composite as being marginally less positive (M = 7.19, SD = 0.94) than the traits in the stability- neutral composite (M = 7.44, SD = 0.81), t(23) = 1.89, p = .071. Consequently, we concluded that physical instability altered participants’ motivation to seek psychological stability rather than their motivation to seek positively valenced traits.
  • 8. Mate selection is often viewed as a process that reflects long-term goals rather than in-the-moment psychological needs. The present study suggests that mate preferences may shift with transient bodily states created by the physical envi - ronment. By examining the important outcome of preferences in mate selection (Meier et al., 2012), this study extends previ - ous findings suggesting that the physical world can affect pref- erences for movie genres (Hong & Sun, 2012) and cleansing products (Zhong & Liljenquist, 2006). We suspect that previ - ously studied physical states may also motivate mate selec- tion: For example, given that physical dirtiness is linked to moral impurity (see Lee & Schwarz, 2011), examining dating profiles in a physically dirty environment might motivate peo- ple to seek out moral puritans. Additionally, because perceived power is associated with feeling tall (Duguid & Goncalo, 2012), feeling short—as when seated in a lowered chair— could increase the attractiveness of high-status mates. Our results also suggest that embodied cues can affect motivation, because participants’ preferences (for stability) likely reflected their goals (to achieve stability). Insofar as goals and motivational states are represented as cognitive structures (Kruglanski et al., 2002), those structures should be represented—much like any other cognition—through senso- rimotor information (Barsalou, 2008). Indeed, we suspect that one reason cognition may become embodied is to ensure that one’s needs—which may arise from physical states—are met through goal pursuit. Embodied motivation, then, is a fruitful avenue for future research. Acknowledgments The authors thank Vanessa K. Bohns, Richard P. Eibach, and John G. Holmes for their invaluable comments on an earlier draft, and Alix
  • 9. Collins and Lindsay Stehouwer for their assistance in conducting this research. 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 Perceptions of Stability Preference for Stability R at in g Physically Stable Condition Physically Unstable Condition Fig. 1. Mean perception of other people’s relationship stability and
  • 10. mean preference for stability (vs. instability) traits in a potential mate as a function of physical stability condition. Error bars represent standard errors of the mean. at OhioLink on February 14, 2013pss.sagepub.comDownloaded from http://pss.sagepub.com/ 114 Kille et al. Declaration of Conflicting Interests The authors declared that they had no conflicts of interest with respect to their authorship or the publication of this article. Funding This research was supported by a Social Sciences and Humanities Research Council of Canada grant awarded to Joanne V. Wood. References Ainsworth, M. D. S. (1979). Infant-mother attachment. American Psychologist, 10, 932–937. Barsalou, L. W. (2008). Grounded cognition. Annual Review of Psy- chology, 59, 617–645. Bowlby, J. (1988). A secure base: Parent-child attachment and healthy human development. New York, NY: Basic Books.
  • 11. Chappell, K. D., & Davis, K. E. (1998). Attachment, partner choice, and perception of romantic partners: An experimental test of the attachment-security hypothesis. Personal Relationships, 3, 117– 136. Collins, N. L., & Feeney, B. C. (2000). A safe haven: Support- seeking and caregiving processes in intimate relationships. Jour- nal of Personality and Social Psychology, 78, 1053–1073. Duguid, M. M., & Goncalo, J. A. (2012). Living large: The powerful overestimate their own height. Psychological Science, 23, 36– 40. Higgins, E. T. (2012). Beyond pleasure and pain: How motivation works. New York, NY: Oxford University Press. Hong, J., & Sun, Y. (2012). Warm it up with love: The effect of physi- cal coldness on liking of romance movies. Journal of Consumer Research, 39, 293–306. Kruglanski, A. W., Shah, J. Y., Fishbach, A., Friedman, R., Chun, W. Y., & Sleeth-Keppler, D. (2002). A theory of goal systems. In M. P. Zanna (Ed.), Advances in experimental social psychology (Vol. 34, pp. 331–378). San Diego, CA: Academic Press. Lee, S. W. S., & Schwarz, N. (2011). Wiping the slate clean: Psycho- logical consequences of physical cleansing. Current Directions in
  • 12. Psychological Science, 20, 307–311. Meier, B. P., Schnall, S., Schwarz, N., & Bargh, J. A. (2012). Embodi- ment in social psychology. Topics in Cognitive Science, 4, 705– 716. doi: 10.1111/j.1756-8765.2012.01212.x Williams, L. E., & Bargh, J. A. (2008). Experiencing physical warmth influences interpersonal warmth. Science, 322, 606–607. Zhong, C.-B., & Liljenquist, K. (2006). Washing away your sins: Threatened morality and physical cleansing. Science, 313, 1451– 1452. at OhioLink on February 14, 2013pss.sagepub.comDownloaded from http://pss.sagepub.com/ moving averageFile name: best homesUse this worksheet to analyze the best homes case study.The data is entered into 60 rows. One row for each month.The forecasting model can be entered into the columns.1Jan 118402Feb 118803Mar 1111204Apr 1112005May 1111206Jun 111120122001016.77July 111080122801023.38Aug 111000126001050.09Sept 11960128401070.010Oct 111000130001083.311Nov 11920132801106.712Dec 11960135201126.713Jan 12920137601146.714Feb 121200140001166.715Mar 121360142401186.716Apr 121360144001200.017May 121400146001216.718Jun 121360147601230.019July 121320151201260.020Aug 121240153601280.021Sept 121200156401303.322Oct 121160160001333.323Nov 121120162001350.024Dec
  • 13. 121120165601380.025Jan 131280165601380.026Feb 131440165601380.027Mar 131640166001383.328Apr 131720168801406.729May 131600170401420.030Jun 131720171601430.031July 131320172001433.332Aug 131240171601430.033Sept 131240170801423.334Oct 131440169201410.035Nov 131280170401420.036Dec 131240168401403.337Jan 141320169201410.038Feb 141400171201426.739Mar 141560173601446.740Apr 141560174401453.341May 141720174001450.042Jun 141520175601463.343July 141400178001483.344Aug 141440182001516.745Sept 141480184801540.046Oct 141520188401570.047Nov 141240190001583.348Dec 141400192401603.349Jan 15156019560Moving50Feb 151800197601646.751Mar 151840196801640.052Apr 151920197201643.353May 151880199201660.054Jun 151760200401670.055July 15172056Aug 15164057Sept 15140058Oct 15156059Nov 15144060Dec 15152061Jan 1662Feb 1663Mar 1664Apr 1665May 1666Jun 1667July 1668Aug 1669Sept 1670Oct 1671Nov 1672Dec 16 DATA 2201120122013201420151Jan8409201,2801,3201,5602Feb8801, 2001,4401,4001,8003Mar1,1201,3601,6401,5601,8404Apr1,200 1,3601,7201,5601,9205May1,1201,4001,6001,7201,8806Jun1,12 01,3601,7201,5201,7607July1,0801,3201,3201,4001,7208Aug1, 0001,2401,2401,4401,6409Sept9601,2001,2401,4801,40010Oct1 ,0001,1601,4401,5201,56011Nov9201,1201,2801,2401,44012De c9601,1201,2401,4001,52012,20014,76017,16017,56020,040 DATA1Jan 11840Jan 12920Jan 131280Jan 141320Jan 1515602Feb 11880Feb 121200Feb 131440Feb 141400Feb 1518003Mar 111120Mar 121360Mar 131640Mar 141560Mar 1518404Apr 111200Apr 121360Apr 131720Apr 141560Apr 1519205May 111120May 121400May 131600May 141720May 1518806Jun 111120Jun 121360Jun 131720Jun 141520Jun 1517607July 111080July 121320July 131320July 141400July 1517208Aug 111000Aug 121240Aug 131240Aug 141440Aug 1516409Sept 11960Sept 121200Sept 131240Sept 141480Sept
  • 14. 15140010Oct 111000Oct 121160Oct 131440Oct 141520Oct 15156011Nov 11920Nov 121120Nov 131280Nov 141240Nov 15144012Dec 11960Dec 121120Dec 131240Dec 141400Dec 15152013Jan 1292014Feb 12120015Mar 12136016Apr 12136017May 12140018Jun 12136019July 12132020Aug 12124021Sept 12120022Oct 12116023Nov 12112024Dec 12112025Jan 13128026Feb 13144027Mar 13164028Apr 13172029May 13160030Jun 13172031July 13132032Aug 13124033Sept 13124034Oct 13144035Nov 13128036Dec 13124037Jan 14132038Feb 14140039Mar 14156040Apr 14156041May 14172042Jun 14152043July 14140044Aug 14144045Sept 14148046Oct 14152047Nov 14124048Dec 14140049Jan 15156050Feb 15180051Mar 15184052Apr 15192053May 15188054Jun 15176055July 15172056Aug 15164057Sept 15140058Oct 15156059Nov 15144060Dec 151520 DATA AND MOV AVG & FORECASTFile name: best homesUse this worksheet to analyze the best homes case study.The worksheet provides only the data from the case study.The data is entered into 60 rows. One row for each month.The forecasting model can be entered into the columns.MONTHSALESMOV. AVG.MOV AVG FCTADJ FCSTSeas fact.1Jan 118401840937.80.962Feb 118802880950.31.103Mar 11112031120962.71.204Apr 11120041200975.21.225May 11112051120987.61.216Jun 111120611201000.11.167July 111080710801012.51.048Aug 111000810001024.90.999Sept 1196099601037.40.9710Oct 1110001010001049.81.0011Nov 11920119201062.30.8912Dec 119601220010171296010171074.70.9113Jan 129201228010231392010231087.10.9614Feb 12120012600105014120010501099.61.1015Mar 12136012840107015136010701112.01.2016Apr 12136013000108316136010831124.51.2217May 12140013280110717140011071136.91.2118Jun 12136013520112718136011271149.41.1619July 12132013760114719132011471161.81.0420Aug
  • 15. 12124014000116720124011671174.20.9921Sept 12120014240118721120011871186.70.9722Oct 12116014400120022116012001199.11.0023Nov 12112014600121723112012171211.60.8924Dec 12112014760123024112012301224.00.9125Jan 13128015120126025128012601236.50.9626Feb 13144015360128026144012801248.91.1027Mar 13164015640130327164013031261.31.2028Apr 13172016000133328172013331273.81.2229May 13160016200135029160013501286.21.2130Jun 13172016560138030172013801298.71.1631July 13132016560138031132013801311.11.0432Aug 13124016560138032124013801323.50.9933Sept 13124016600138333124013831336.00.9734Oct 13144016880140734144014071348.41.0035Nov 13128017040142035128014201360.90.8936Dec 13124017160143036124014301373.30.9137Jan 14132017200143337132014331385.80.9638Feb 14140017160143038140014301398.21.1039Mar 14156017080142339156014231410.61.2040Apr 14156016920141040156014101423.11.2241May 14172017040142041172014201435.51.2142Jun 14152016840140342152014031448.01.1643July 14140016920141043140014101460.41.0444Aug 14144017120142744144014271472.80.9945Sept 14148017360144745148014471485.30.9746Oct 14152017440145346152014531497.71.0047Nov 14124017400145047124014501510.20.8948Dec 14140017560146348140014631522.60.9149Jan 15156017800148349156014831535.10.9650Feb 15180018200151750180015171547.51.1051Mar 15184018480154051184015401559.91.2052Apr 15192018840157052192015701572.41.2253May 15188019000158353188015831584.81.2154Jun 15176019240160354176016031597.31.1655July 15172019560163055172016301609.71.0456Aug
  • 16. 15164019760164756164016471622.20.9957Sept 15140019680164057140016401634.60.9758Oct 15156019720164358156016431647.01.0059Nov 15144019920166059144016601659.50.8960Dec 15152020040167060152016701671.90.9161Jan 1661611684.415990.9562Feb 1662621696.818101.0763Mar 1663631709.220421.1964Apr 1664641721.721031.2265May 1665651734.120791.2066Jun 1666661746.620191.1667July 1667671759.018421.0568Aug 1668681771.517560.9969Sept 1669691783.916830.9470Oct 1670701796.317780.9971Nov 1671711808.815990.8872Dec 1672721821.216540.91 DATA AND MOV AVG & FORECAST SALES MOV. AVG. Moving Average 12 Preceding Months MODEL WITH MOV AVG PAST 12 MONT SALES MOV. AVG. MOV AVG FCT ADJ FCST FCST CHART PRE 12 MOV AVG FCST CHART PRE 12 MOV AVG112233445566778899101011111212131314141515161617 17181819192020212122222323242425252626272728282929303 03131323233333434353536363737383839394040414142424343 44444545464647474848494950505151525253535454555556565 757585859596060 SALES MOV. AVG. MONTH SALES Moving Average 12 Preceding Months 840 880 1120 1200
  • 26. 1209631.161,3601112.01.221,6401,261.31.301,5601,410.61.111 ,8401,5601.185.971.194Apr12009751.231,3601124.51.211,7201 ,273.81.351,5601,423.11.101,9201,5721.226.111.225May11209 881.131,4001136.91.231,6001,286.21.241,7201,435.51.201,880 1,5851.195.991.206Jun11201,000.11.121,3601149.41.181,7201, 298.71.321,5201,448.01.051,7601,5971.105.781.167July10801, 012.51.071,3201161.81.141,3201,311.11.011,4001,460.40.961,7 201,6101.075.241.058Aug10001,024.90.981,2401174.21.061,24 01,323.50.941,4401,472.80.981,6401,6221.014.960.999Sept960 1,037.40.931,2001186.71.011,2401,336.00.931,4801,485.31.001 ,4001,6350.864.720.9410Oct10001,049.80.951,1601199.10.971, 4401,348.41.071,5201,497.71.011,5601,6470.954.950.9911Nov 9201,062.30.871,1201211.60.921,2801,360.90.941,2401,510.20. 821,4401,6590.874.420.8812Dec9601,074.70.891,1201224.00.9 21,2401,373.30.901,4001,522.60.921,5201,6720.914.540.9112,0 7513,86715,65917,45019,242 Best Homes, Inc.: Forecasting Best Homes is one the largest builders of new residential homes in U.S. with 20,040 new homes built in 2015. The case presents monthly sales data from 2011 to 2015. This data is representative of home builders since we estimated the sales of Best Homes based on a 4% market share of the total sales of new homes in the U.S. from the U.S. Census web site. Thus the trend and seasonality are in line with U.S. home sales in total. The case explains the problem facing Best Homes in terms of annual planning and the S&OP process. Forecasting is put in the context of how the forecast will be used. Also, sales projections are being gathered from the field, and the case asks students to reconcile those with the forecasts based on historical
  • 27. data. Questions for the case 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? I hope this helps If not we can have an adobe session with your team tomorrow Sunday April 12, 2020 or any other time that is convenient Regards, Santosh Sambare Best Homes, Inc.: Forecasting
  • 28. Background Best Homes is a new home construction company based in Kansas City, Missouri. They build only residential and new homes throughout the United States. They have expanded the Midwest and the West coast and to the south, starting in 1945 the East coast. They build all types of new residential housing, from low-end to high-end housing in the market. Best Homes was a private company until 1958 when the initial public offering began. The company started small but expanded to one of the largest home builders in the United States. The case presents monthly sales data from 2011 to 2015. This data is representative of home builders since we estimated the sales of Best Homes based on a 4% market share of the total sales of new homes in the U.S. from the U.S. Census web site. Thus, the trend and seasonality are in line with U.S. home sales in total. The case explains the problem facing Best Homes in terms of annual planning and the S&OP process. Forecasting is put in the context of how the forecast will be used. Also, sales projections are being gathered from the field, and the case asks students to reconcile those with the forecasts based on historical data. Best Homes competes on the basis of their outstanding brand reputation. Their reputation is gained by building quality houses at competitive prices. The cost per square foot of the house is comparable to that of its competitors, but its design and interior finish are excellent. This provides an advantage that competitors can't find. Show after completion of the building, including the installation of inner walls, floors, windows, siding, cabinets and timber works, to provide a beautiful home. Use part-time or contract for other parts that are not marked upon completion. However, workers who perform foundations, rough walls, roofs, wiring and piping. In each of these areas, however, they employ more than 60 percent of ful l- time workers. All new employees, part-time or contract employees are assigned full-time employees and receive quality control training for their work during the first six months.
  • 29. Objective Financing uses this to forecast the company's overall revenue and to prepare estimates of revenue and balance sheet forecasts along with quarterly income estimates. Marketing uses monthly forecasts to plan sales forecasts, employment plans, sales incentives and sales targets. Operations and supply chains use forecasts for sales and operational planning (S & OP) planning processes. S & OP is performed for annual forecasts and updated monthly to coordinate sales forecasts and resulting employment plans for new, contracted and part-time employees. Along with the expected dismissal. Each month, the S & OP process starts with an updated rolling forecast every 12 months. The employment plan and the start of housing construction are then set up next month and planned for the next three months. The plan also includes a purchase plan for materials used in construction. Housing. Monthly updates may require adjusting both the capacity and inventory of new homes. All features, including finance, marketing, sales, operations, and HR, participate in the S & OP process. The first part of the planning process is to predict the demand for new homes every month. Shows the number of detached houses built by Best Homes every month. This data is a forward forecast for all of 2016. Predicting average monthly demand alone in the future is not enough. Actual demand may be significantly higher or lower than average. As a result, you should also predict standard or average absolute deviations. The monthly production level of the new house is set to average demand. In addition, if demand exceeds the average, secure a safe inventory of new homes. With three months of lead time to build a new house, all inventory and production levels should expect three months of lead time. This shows an important prediction for both
  • 30. predictions. 1. What forecasting methods should the company consider? Please justify. · The company should use time series method · It suitable for not much data and based on seasonal patterns · According to the calculation the 12 months moving average. · The advantages of this method are easy to understand, and the moving average can smooth the estimate that makes the company see the trend. · The moving average can be calculated by using the previous sale and calculate the average. 1 Jan 11 840 2 Feb 11 880 3 Mar 11 1120 4 Apr 11 1200 5 May 11 1120
  • 31. 6 Jun 11 1120 7 July 11 1080 8 Aug 11 1000 9 Sept 11 960 10 Oct 11 1000 11 Nov 11 920 12 Dec 11 960 12200
  • 32. 1017 13 Jan 12 920 12280 1023 14 Feb 12 1200 12600 1050 15 Mar 12 1360 12840 1070 16 Apr 12 1360 13000 1083 17 May 12 1400 13280 1107 18 Jun 12 1360 13520 1127 19 July 12 1320 13760 1147
  • 33. 20 Aug 12 1240 14000 1167 21 Sept 12 1200 14240 1187 22 Oct 12 1160 14400 1200 23 Nov 12 1120 14600 1217 24 Dec 12 1120 14760 1230 25 Jan 13 1280 15120 1260 26 Feb 13 1440 15360 1280 27
  • 34. Mar 13 1640 15640 1303 28 Apr 13 1720 16000 1333 29 May 13 1600 16200 1350 30 Jun 13 1720 16560 1380 31 July 13 1320 16560 1380 32 Aug 13 1240 16560 1380 33 Sept 13 1240 16600 1383 34 Oct 13
  • 35. 1440 16880 1407 35 Nov 13 1280 17040 1420 36 Dec 13 1240 17160 1430 37 Jan 14 1320 17200 1433 38 Feb 14 1400 17160 1430 39 Mar 14 1560 17080 1423 40 Apr 14 1560 16920 1410 41 May 14 1720
  • 36. 17040 1420 42 Jun 14 1520 16840 1403 43 July 14 1400 16920 1410 44 Aug 14 1440 17120 1427 45 Sept 14 1480 17360 1447 46 Oct 14 1520 17440 1453 47 Nov 14 1240 17400 1450 48 Dec 14 1400 17560
  • 37. 1463 49 Jan 15 1560 17800 1483 50 Feb 15 1800 18200 1517 51 Mar 15 1840 18480 1540 52 Apr 15 1920 18840 1570 53 May 15 1880 19000 1583 54 Jun 15 1760 19240 1603 55 July 15 1720 19560 1630
  • 38. 56 Aug 15 1640 19760 1647 57 Sept 15 1400 19680 1640 58 Oct 15 1560 19720 1643 59 Nov 15 1440 19920 1660 60 Dec 15 1520 20040 1670 61 Jan 16 62 Feb 16 63
  • 39. Mar 16 64 Apr 16 65 May 16 66 Jun 16 67 July 16 68 Aug 16 69 Sept 16 70 Oct 16
  • 40. 71 Nov 16 72 Dec 16 2. Use the classical decomposition method to forecast average demand for 2016 by month. What is your forecast of monthly average demand for 2016? · As a result, the blue trend is a sale forecast and the orange trend is calculated sale with the 12 months moving average · The linear function from the sale itself is y = 11.758x+1003.4 where r-square is 0.5888 · The linear function from 12 months moving average is 12.442x+925.28 where r-square is 0.9504 · R-square can describe How accurate of the function which has value between 0-100%
  • 41. · When we compare the 12 months average r-square with the sale r-square the 12 months average r-square is more accurate · The company should use 12 months moving average function y=12.442x+925.28 where x is a month order start from January 2011 to forecast monthly average demand for 2016 X Month MOV AVG FCT 61 Jan 16 1684.4 62 Feb 16 1696.8 63 Mar 16 1709.2 64 Apr 16 1721.7 65 May 16 1734.1
  • 42. 66 Jun 16 1746.6 67 July 16 1759.0 68 Aug 16 1771.5 69 Sept 16 1783.9 70 Oct 16 1796.3 71 Nov 16 1808.8 72 Dec 16 1821.2 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? Year 2011 2012 2013 2014 2015 2016 Moving average total 12075
  • 43. 13867 15659 17450 19242 21034 Growth rate 15% 13% 11% 10% 9% · The sale growth rate has dropped since 2012. If the company focus only number of sales which is growth overtime will start to lose market competitive. · This comparison of growth rate will lead to discussion of developing the company’s marketing, operation, finance, and human resource. · However, the sale projection from all region will help assuming the overall demand forecast it help to manage the reasonable inventory which can prevent over operation cost and inventory cost. Moving Average 12 Preceding Months SALES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  • 44. 840 880 1120 1200 1120 1120 1080 1000 960 1000 920 960 920 1200 1360 1360 1400 1360 1320 1240 1200 1160 1120 1120 1280 1440 1640 1720 1600 1720 1320 1240 1240 1440 1280 1240 1320 1400 1560 1560 1720 1520 1400 1440 1480 1520 1240 1400 1560 1800 1840 1920 1880 1760 1720 1640 1400 1560 1440 1520 MOV. AVG. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 1016.6666666666666 1023.3333333333334 1050 1070 1083.3333333333333 1106.6666666666667 1126.6666666666667 1146.6666666666667 1166.6666666666667 1186.6666666666667 1200 1216.6666666666667 1230 1260 1280 1303.3333333333333 1333.3333333333333 1350 1380 1380 1380 1383.3333333333333 1406.6666666666667 1420 1430 1433.3333333333333 1430 1423.3333333333333 1410 1420 1403.3333333333333 1410 1426.6666666666667 1446.6666666666667 1453.3333333333333 1450 1463.3333333333333 1483.3333333333333 1516.6666666666667 1540 1570 1583.3333333333333 1603.3333333333333 1630 1646.6666666666667 1640 1643.3333333333333 1660 1670 MONTH SALES