Company H was started in 1971 with one pub in Country L and expanded to 163 restaurants in more than 68 countries. This raised the necessity for an improved forecasting system. The firm uses the long-term forecast to set capacity plans and short-term forecasts to get contracts on leathers and food items. The firm adopts a point-of-sale (POS) system, which records the entry of each sale. Each sales entry represents one customer and the headquarters database receives every sales data. The forecast is made on the basis of data, the guest counts, dinner sales, retail sales, and concert sales at each café. The firm also adopts information from the past year for the particular day and the information from the tourist board for the forthcoming program. A bonus is given to managers who exceed their targets. The 3-year weighted average technique is adopted to estimate sales. They use multiple regressions to measure the impact of the demand for one item over others. The placements of food items are also taken as a measure to forecast demand. To describe: Three various forecasting applications adopted at Company H and suggest three areas where Company H can use the forecasting model.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 2.1VC

Summary Introduction

Introduction:

Company H was started in 1971 with one pub in Country L and expanded to 163 restaurants in more than 68 countries. This raised the necessity for an improved forecasting system. The firm uses the long-term forecast to set capacity plans and short-term forecasts to get contracts on leathers and food items. The firm adopts a point-of-sale (POS) system, which records the entry of each sale.

Each sales entry represents one customer and the headquarters database receives every sales data. The forecast is made on the basis of data, the guest counts, dinner sales, retail sales, and concert sales at each café. The firm also adopts information from the past year for the particular day and the information from the tourist board for the forthcoming program.

A bonus is given to managers who exceed their targets. The 3-year weighted average technique is adopted to estimate sales. They use multiple regressions to measure the impact of the demand for one item over others. The placements of food items are also taken as a measure to forecast demand.

To describe: Three various forecasting applications adopted at Company H and suggest three areas where Company H can use the forecasting model.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The following table shows the actual demand observed over the last 11 years: Year 1 Demand 8 2 9 3 5 This exercise contains only parts b, c, and d. b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place). Year Forecast 4 5 4 10 6 5 13 7 6 7 8 7 11 9 8 14 10 9 8 11 10 13 12 11 8

pleae solve all parts within 30 minutes.

National Standard, Inc. sells radio frequency identification (RFID) tags. Monthly demand for a seven-month period is reported below: Sales (1000 units) Forecast Observation Month Yt Ft 1 February 19 2 March 18 3 April 15 4 May 20 5 June 18 6 July 22 7 August 20 8 September ? Use Excel to plot the data and forecast September sales using the following methods: The naïve forecast A three-month moving average Exponential smoothing with a smoothing coefficient of α = 0.2, assuming a February forecast of 19 A 3-month weighted moving average, with weights 0.60, 0.3, and 0.1. With 0.6 applied to the most recent past.