Problem solve Problem 2 A specific forecasting model was used to forecast demands for a product. The fore a t and the corresponding demands that subsequently occurred are shown below. Use the MAD and tracking signal technique to evaluate the forecasting model. Solution Evaluate the forecasting model using MAD, MAPE, and Jacking signal. Forecast model is …
Solved Problems Problem 1 Sunrise Baking Company markets doughnuts through a chain of food stores and has been experiencing over- and underproduction because of forecasting errors. The following data are their daily demands in dozens of doughnuts for the past four weeks. The bakery is closed Saturday so Friday’s production must satisfy demand for both Saturday and Sunday. Make …
Internet Exercise The Wharton School at the University of Pennsylvania has a website devoted to forecasting at www.rnarketing.wharton.upenn.edu/forecastlwelcome.html. Visit this website and select a firm that provides business forecasting software. Visit that firm’s website and perform the following: Describe the company. Select one of its forecasting software products and describe it in detail including costs. Identify specific applications for …
Review and Discussion questions 1. Examine Exhibit 9.3 and suggest which forecasting technique you might use for (a) bathing suits. (b) demand for new house-. (e) electrical power usage. (d) new plant’ expansion plans. 2. In terms of the errors, why would the operations manager wish to use the least method when doing simple linear regression? …
Key Formulas Simple Moving Average Forecast Weighted moving Average Forecast and Exponential Smoothing Exponential Smoothing with Trend Effects Mean Absolute Deviation (MAD) Tracking Signal
