11th Edition

ISBN: 9780132921145

Author: Jay Heizer

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 …

Videos

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?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 4, Problem 22P

Chapter 4, Problem 24P

Students have asked these similar questions

QUESTION 2:The manager of YTL Computers wants to develop next year’s quarterly forecasts of salesrevenue for its brand laptops. The sales are seasonal and the company believes that thefollowing most recent eight quarters of sales should be representative of next year’ssales: Year Quarter Sales (millions of dollars) 1 1 9.2 1 2 5.4 1 3 4.3 1 4 14.1 2 1 10.3 2 2 6.4 2 3 5.4 2 4 16.0 Determine the forecast of next year’s quarterly sales revenue for this line of laptops.Show all your workings.

Question 1 ) The monthiy sales Of yamizí Battery company are asfollows:- Month Jales 2000 2100 1500 1400 1300 Calcuiate fore cost sales for June using each of the fo llowing method: - i) Naive Method 1M 3 Month Simple moving averoger Ti) Exponentral smoothing using an a =0:3 cand may forecast of 1600 units.

Q1) Forecasting is both art and science. Describe the situations where we use Qualitative forecasting techniques and quantitative forecasting techniques

Chapter 4 Solutions

Operations Management

Ch. 4 - What is a qualitative foretasting model, and when...Ch. 4 - Identify and briefly describe the two general...Ch. 4 - Identify the three forecasting time horizons....Ch. 4 - Briefly describe the steps that are used to...Ch. 4 - A skeptical manager asks what medium-range...Ch. 4 - Explain why such forecasting devices as moving...Ch. 4 - What is the basic difference between a weighted...Ch. 4 - What three methods are used to determine the...Ch. 4 - Research and briefly describe the Delphi...Ch. 4 - What is the primary difference between a...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.