Compare the three forecasts using MAD

Assignment Help Operation Management

Reference no: EM131442302

Burger Lover Restaurant forecasts weekly sales of cheeseburgers. Week Cheeseburger Sales 1 357 2 343 3 363 4 320 5 359 Based on historical observations over the past five weeks, make a forecast for the next period using the following methods: simple average, three-period moving average, and exponential smoothing with α = 0.3, given a forecast of 322 cheeseburgers for the fifth week. Round your answers to 2 decimal places, the tolerance is +/-0.01. Simple average: F6 = 3-Period moving average: F6 = Exponential smoothing: F6 = If actual sales for week 6 turn out to be 367, compare the three forecasts using MAD. Which method performed best? (Calculate your answers using the error only in period 6.) MAD (simple average) = MAD (3-period moving average) = MAD (exponential smoothing) = provides the lowest MAD.

Reference no: EM131442302

Questions Cloud

Innovative technology in production to increase efficiency : The toy industry is very fickle and innovation is critical. Sales for January 2017 showed only a 3% rise over January 2016 leaving the company managers concerned about meeting projected sales targets for 2017. use innovative technology in production ..

Which of these is actually the naive method : A company has used three different methods to forecast sales for the past five months. Use MAD and MSE to evaluate the performance of the three methods. Which of these is actually the naive method?

Identify the competitive advantage of each of these firms : Identify service firms that compete on each of the four processes (process, repetitive, product, mass customization). And identify the competitive advantage of each of these firms.

Write an introduction for strategic planning : Strategic Planning. Make a case for HR at the senior leadership table. Discuss the value and the competencies that a senior Human Resources professional will bring to the table. Please write an introduction for Strategic Planning.

Compare the three forecasts using MAD : Burger Lover Restaurant forecasts weekly sales of cheeseburgers. Week Cheeseburger Sales 1 357 2 343 3 363 4 320 5 359 Based on historical observations over the past five weeks, make a forecast for the next period using the following methods: simple ..

Elaboration likelihood model : Petty and Cacioppo’s Elaboration Likelihood Model (ELM) provides a useful explanation of how persuasion operates. Locate an advertisement that is an example of the ELM Model. Make sure you include a copy of the advertisement with this assignment. Exp..

Explain the possible consequences of your chosen example : The term levels of treatment refers to a continuum arranged by intensity of treatment. The levels of treatment range from the least to the most intense and aggressive approaches. The American Society of Addiction Medicine's Patient Placement Crite..

Transporting pots and plants for wholesale garden nurseries : Tom presently runs a business (as a sole proprietor) transporting pots and plants for wholesale garden nurseries. One of his clients who has a diversified business has just offered him a 12 month contract transporting cranes, forklift trucks and ..

Explain why you believe the actions to be stealing : Suppose an employee constantly uses his or her work computer (and work time) to surf the Internet. Explain why you feel this is or is not an example of stealing from the organization. Give some other "nontraditional" examples of stealing from an o..

User Account

All Pages