Tropical Seafoods is a small new restaurant that has opened in town. Sales have been steadily increasing as “word of mouth” has spread through the capital. In its first 12 weeks, sales at Tropical Seafoods (in $ 1000s) have been: WEEK SALES 1 18 2 22 3 26 4 24 5 28 6 32 7 32 8 40 9 38 10 42 11 40 12 46 1. Using a weighted moving average with three periods, determine the sales for period 13. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively 2. Find the MAD, MSE and MAPE 3. Use exponential smoothing with a smoothing constant of 0.50 to forecast the sales (Assume that last period’s forecast for period 1 is equal to actual to begin the procedure (Ft1=Yt1). Which method do you think is best? Is this an improvement over the weighted average- use MAD only
Tropical Seafoods is a small new restaurant that has opened in town. Sales have been steadily increasing as “word of mouth” has spread through the capital. In its first 12 weeks, sales at Tropical Seafoods (in $ 1000s) have been: WEEK SALES 1 18 2 22 3 26 4 24 5 28 6 32 7 32 8 40 9 38 10 42 11 40 12 46 1. Using a weighted moving average with three periods, determine the sales for period 13. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively 2. Find the MAD, MSE and MAPE 3. Use exponential smoothing with a smoothing constant of 0.50 to forecast the sales (Assume that last period’s forecast for period 1 is equal to actual to begin the procedure (Ft1=Yt1). Which method do you think is best? Is this an improvement over the weighted average- use MAD only
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Tropical Seafoods is a small new restaurant that has opened in town. Sales have been steadily increasing as “word of mouth” has spread through the capital. In its first 12 weeks, sales at Tropical Seafoods (in $ 1000s) have
been:
| WEEK | SALES |
| 1 | 18 |
| 2 | 22 |
| 3 | 26 |
| 4 | 24 |
| 5 | 28 |
| 6 | 32 |
| 7 | 32 |
| 8 | 40 |
| 9 | 38 |
| 10 | 42 |
| 11 | 40 |
| 12 | 46 |
1. Using a weighted moving average with three periods, determine the sales for period 13. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively
2. Find the MAD, MSE and MAPE
3. Use exponential smoothing with a smoothing constant of 0.50 to
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