Question: 7. PARTA (14 marks) Bauline Bakery is a small local bakery; one of the most popular products is the tea biscuit. Bauline Bakery buys frozen

7. PARTA (14 marks) Bauline Bakery is a small
7. PARTA (14 marks) Bauline Bakery is a small
7. PARTA (14 marks) Bauline Bakery is a small local bakery; one of the most popular products is the tea biscuit. Bauline Bakery buys frozen biscuit from a local supplier and then bakes them. For the sake of quality, the bakery doesn't want to store its frozen biscuits for more than one week. For orders of more than 485 cases, the delivery is free (saving $15 per order). A case contains 13 frozen biscuits. Bauline Bakery has collected its total weekly sales for tea biscuits (in cases) for the last 5 weeks (see below). The owner believes that the sales of tea biscuits is increasing: Week 1 2 Actual Sales 461 450 463 3 4 5 458 476 a) (9 marks) Using the Linear Trend method, forecast sales from week 6 onward and determine when Bauline Bakery could take advantage of the quantity discount. b) (4 marks) Now use the Exponential Smoothing method with a = 0.5 and an initial sales forecast for week 5 of 466; actual sales for Week 5 is as noted on the previous page. For purposes of the calculations, you can use last year's actuals for the same period, noted below: Previous Year Week Actual Sales 6 482 7 489 8 495 9 500 c) (1 mark) Give one example of what forecast accuracy calculations are used for

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!