11th Edition

ISBN: 8220103630726

Author: RENDER

Publisher: PEARSON

Concept explainers

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In …

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Textbook Question

Chapter 4, Problem 23P

Question

•• 4.23 Sales of quilt covers at Bud Banis’s department store in Carbondale over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May, and June):

MONTH	UNIT SALES	MANAGEMENT’S FORECAST
July	100
August
September	96
October	110
November	124
December	119
January	92
February	83
March	101	120
April	96	114
May	89	110
June	108	108

a. Compute MAD and MAPE for management’s technique.
b. Do management’s results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?
c. Which forecast do you recommend, based on lower forecast error?

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Chapter 4, Problem 22P

Chapter 4, Problem 24P

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Chapter 4 Solutions

EBK OPERATIONS MANAGEMENT

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