Question

In: Operations Management

Monthly demand for a hot pizza restaurant is given as follows for 1 year (12 months)....

Monthly demand for a hot pizza restaurant is given as follows for 1 year (12 months). Estimate the demand including the next two months (13 and 14) by using Holt's and Exponential Smoothing methods. Compare the methods with MSE, MAD, and MAPE metrics, and discuss the superior method.

Use alpha=0.05 and beta=0.1 for Holt's model and use alpha=0.3 for exponential smoothing model. Hint: Level and trend in Holt's method could be obtained with regression. L0 in exponential smoothing is the average demand for the 12-month period.

Period

Pizza Sales

1

1020

2

1133

3

1291

4

1456

5

1576

6

1658

7

1743

8

1879

9

1884

10

2091

11

2192

12

2209

13

14

Solutions

Expert Solution

keosha answered 2 days ago
Next > < Previous

Related Solutions

A restaurant in London is in its first 12 months of business. The year was somewhat...
A restaurant in London is in its first 12 months of business. The year was somewhat successful, with the owner averaging $1,000 net profit per month after all deductions and expenses. However, he is unhappy with the amount of time it has been taking staff to provide customer service (measured from the time the customer enters to the moment they leave with their food). The restaurant design team was convinced that the restaurant’s design would allow for an average delivery...
1. Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at...
1. Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $6.43 per slice, $142.00 as monthly rental and $51.00 monthly as insurance. A restaurant sells pizza at a rate of $11.43/slice. How many slices should the restaurant sell in a month to break even? 2. You run a nail salon. Fixed monthly cost is $5,595.00 for rent and utilities, $5,643.00 is spent in salaries and $1,487.00 in insurance. Also every customer requires approximately $2.00...
Hannah always consumes pizza with a bottle of pepsi. Her monthly demand function for pizza is...
Hannah always consumes pizza with a bottle of pepsi. Her monthly demand function for pizza is given as X=M/P1+P2, where M is her monthly income, P1 and P2 are prices of pizza and pepsi respectively. Her original income is $80, price of pizza is $7 and price of pepsi is $1. If the price of pizza falls to $5: How much do we take away from Hannah for her to be able to afford her old bundle? What is the...
Make up an example of a monthly demand schedule for pizza. . Give an example of...
Make up an example of a monthly demand schedule for pizza. . Give an example of something that would shift this demand curve, and briefly explain your reasoning. Would a change in the price of pizza shift this demand curve?
Make up an example of a monthly demand schedule for pizza. . Give an example of...
Make up an example of a monthly demand schedule for pizza. . Give an example of something that would shift this demand curve, and briefly explain your reasoning. Would a change in the price of pizza shift this demand curve?
1. True or False : Annualizing monthly salary means diving the salary amount by 12 months...
1. True or False : Annualizing monthly salary means diving the salary amount by 12 months 2. True or False : If workers paid on a monthly basis earn overtime pay for work beyond a 40 hour week, hourly overtime rate is computed by converting the monthly salary rate to an hourly rate, and then multiply that rate by 1.5.? 3. Per FLSA, a tipped employee is one who receives ______ or more per month in tips. An employer can...
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2...
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2 year 0.4% 0.5% 0.6% 0.67% Assuming that Z-spread is equal to 45 basis points, calculate the bond’s arbitrage free price. Show calculations. Coupon Rate = 4.2% frequency; semi annual
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2...
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2 years 0.4% 0.5% 0.6% 0.7% Derive six-monthly forward rates, including six- months forward rate 6 month from now - 0.5f0.5, six-month forward rate 12 months from now - 1f0.5, and six-months forward rate 18 months from now - 1.5f0.5 for the bond. Show calculations. (4.5 marks)
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2...
Current (annualised) US Treasury spot rates are as follows: 6 months 1 year 18 months 2 years 0.4% 0.5% 0.6% 0.7% Bond Cashflows: Maturity: 2 years semi annual Par value: 100 Coupon: 1.625/2 = 0.8125 6 months from now = 0.8125 1 year from now = 0.8125 1.5 year from now= 0.8125 2 years from now = 100+0.8125 From the US treasury spot rates above and assuming Z-spread of 35 basis points, calculate appropriate discount rates (implied spot rates) for...
Consider monthly demand for the ABC Corporation as shown below. Forecast the monthly demand for Year...
Consider monthly demand for the ABC Corporation as shown below. Forecast the monthly demand for Year 6 using the 3-period moving average and 4-period moving average. Evaluate the bias, TS, MAD, MAPE and MSE. Evaluate the quality of the forecast Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2000 3000 2000 5000 5000 FEB 3000 4000 5000 4000 2000 MAR 3000 3000 5000 4000 3000 APR 3000 5000 3000 2000 2000 MAY 4000 5000 4000 5000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT