Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Steve and Wes know they must prepare/use forecasts to make effective decisions for the business. They are presently faced with 3 situations for analyzing/preparing forecast data: Analysis 1: Wes and Steve must decide how many bananas to purchase for the business-especially since they are perishable and can get damaged/smooshed. The pair have documented banana sales for 12 periods as shown below and other relevant data on Page 2 and has decided to create a forecast for period 13 using 4 different methods: 1. Nave 2. Moving Average 3. Weighted Moving Average 4. Exponential Smoothing Period Sales (units) 1 2 3 4 Monday .80 5 6 Tuesday .95 100 88 147 157 195 187 Where t = 1 on THURSDAY of Week 1 and where seasonal relatives are as follows: Period 7 8 9 Analysis 2: After analyzing the last 4 weeks of sales data, Steve and West have determined that their business has seasonality each week and is growing in an upward trend. They have identified the following trend equation for their daily sales and seasonal relatives for each workday, Monday through Friday as shown below. The pair would like to create a forecast for week 5 using this information: F(t) = $54,950+ $141x Wednesday 1.10 10 11 12 Sales (units) 200 196 231 245 295 324 Thursday 1.25 Friday 1.50 Analysis 3: Steve and Wes have developed 2 forecasting techniques for food truck sales (shown in $00) and want to confirm which is more accurate. They have supplied the following table with actual/forecasted sales for Technique A and Technique B. Day 1 2 3 4 5 6 7 8 9 10 Actual Sales 48 42 46 61 65 62 52 58 67 72 Forecast A - 58 57 67 55 57 65 65 Forecast B 46 41 44 66 70 55 48 53 73 70 1. Nave Forecast Math (must show): Rationale (must state in 1 sentence): 2. Four Period Moving Average (4PMA) Math (must show): 3. Weighted Moving Average using weights of .5, .3 and.2 Math (must show): 4. Exponential Smoothing Forecast using a =.20 and initial forecast for Period 8 is 210. Must show math below: Answer: (2 pts) Answer: (2 pts) Answer: (2 pts) Answer: (3 pts) 5. Create the relevant T-table for solving Analysis 2: (2 pts) 6. What is the forecast for each weekday of Week 5 (you must include math): (5 pts) Day Monday Tuesday Wednesday Thursday Friday Math = = = Answer ANALYSIS 3. 7. With the data provided, calculate MAD and MSE for each forecasting technique (no need to convert to $00): (8 pts) Forecast A Work: Forecast B Work: Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Steve and Wes know they must prepare/use forecasts to make effective decisions for the business. They are presently faced with 3 situations for analyzing/preparing forecast data: Analysis 1: Wes and Steve must decide how many bananas to purchase for the business-especially since they are perishable and can get damaged/smooshed. The pair have documented banana sales for 12 periods as shown below and other relevant data on Page 2 and has decided to create a forecast for period 13 using 4 different methods: 1. Nave 2. Moving Average 3. Weighted Moving Average 4. Exponential Smoothing Period Sales (units) 1 2 3 4 Monday .80 5 6 Tuesday .95 100 88 147 157 195 187 Where t = 1 on THURSDAY of Week 1 and where seasonal relatives are as follows: Period 7 8 9 Analysis 2: After analyzing the last 4 weeks of sales data, Steve and West have determined that their business has seasonality each week and is growing in an upward trend. They have identified the following trend equation for their daily sales and seasonal relatives for each workday, Monday through Friday as shown below. The pair would like to create a forecast for week 5 using this information: F(t) = $54,950+ $141x Wednesday 1.10 10 11 12 Sales (units) 200 196 231 245 295 324 Thursday 1.25 Friday 1.50 Analysis 3: Steve and Wes have developed 2 forecasting techniques for food truck sales (shown in $00) and want to confirm which is more accurate. They have supplied the following table with actual/forecasted sales for Technique A and Technique B. Day 1 2 3 4 5 6 7 8 9 10 Actual Sales 48 42 46 61 65 62 52 58 67 72 Forecast A - 58 57 67 55 57 65 65 Forecast B 46 41 44 66 70 55 48 53 73 70 1. Nave Forecast Math (must show): Rationale (must state in 1 sentence): 2. Four Period Moving Average (4PMA) Math (must show): 3. Weighted Moving Average using weights of .5, .3 and.2 Math (must show): 4. Exponential Smoothing Forecast using a =.20 and initial forecast for Period 8 is 210. Must show math below: Answer: (2 pts) Answer: (2 pts) Answer: (2 pts) Answer: (3 pts) 5. Create the relevant T-table for solving Analysis 2: (2 pts) 6. What is the forecast for each weekday of Week 5 (you must include math): (5 pts) Day Monday Tuesday Wednesday Thursday Friday Math = = = Answer ANALYSIS 3. 7. With the data provided, calculate MAD and MSE for each forecasting technique (no need to convert to $00): (8 pts) Forecast A Work: Forecast B Work:
Expert Answer:
Answer rating: 100% (QA)
You provided images with information regarding forecasting techniques for sales data There is a lot of work involved in the forecasting part so Im going to break it down into steps for each analysis a... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these general management questions
-
It is easy for anybody to delegate tasks in an office, but effective leadership is more than that. Prominent leaders have significant impacts on the team members they manage and their company....
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
-
Solve the equation symbolically. Then solve the related inequality. - - x] S | - H =
-
Give some examples of the basic assets and liabilities of a company like Walmart Stores, Inc.
-
Identify the analytical procedures that may be most effective in performing an audit of depreciation expense. Indicate also how the procedures may provide information on the accuracy of asset...
-
Home prices have been on the rise since 2000, driven by low interest rates that make mortgages affordable.
-
a. Prepare a plot of the CPI data. Based on this plot, which of the time series forecasting techniques covered in this chapter would not be appropriate for forecasting this time series? b. Apply...
-
.. Date # of Cost per # of units Cost per sold Cost of Goods Sold Cost per units unit # of units Inventory unit unit Balance March 1 100 @ $ 51.00 $ 5,100.00 March 5 225 $ 56.00 $ 51.00 225 @ $ 56....
-
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 16,000 tons) in City A. Marginal pollution reduction costs for Plant 1 are given by MCR 1 = 0.02 Q 1 and for Plant...
-
14. A glass fiber/polymer compound is injection molded in a steel tool. To simplify the analysis, assume treat is as it is only polymer and model the sprue, runner and part as a cylinder of diameter...
-
The equity method of accounting for investments in voting common stock is appropriate when: a) The investor can significantly influence the investee. b) The investor controls the investee. c) The...
-
calculate ANOVA single Factor from the data in the screenshot. calculate the exact figures for the P-Value. Also calculate value for the Sum, Average and variance for the Delivery. On-site and...
-
Topper Inc. had following inventories on March 1: Finish goods Rs. 15000, WIP Rs. 19070 and Materials Rs. 14000. The work in process control three jobs: Job No. 62 Materials Rs. 2800, Labor Rs. 2100...
-
Kent Company\'s accountant is preparing its June bank reconciliation and has collected the following data: Per Books Per Bank June 1 Balance $11,600 $10,000 June Deposits 24,600 21,200 June Checks...
-
What is lean thinking (lean thinking), and how does it apply to logistics?What is agile, and how does it compare to lean?Provide examples of agile practices that can help sustain an agile supply...
-
Case Study: Navigating Challenges in Accounting Auditing Errors ABC Corporation, a multinational company, recently underwent an annual audit conducted by an external auditing firm. Despite the...
-
Gopher, Inc. developing its upcoming budgeted Costs of Quality (COQ) with the following information: Expense Item Budget Raw Materials Inspection $ 15,000 EPA Fine 200,000 Design Engineering 15,000...
-
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $4,000. Total real estate taxes for the home are $950, and...
-
Laura is a single taxpayer living in New Jersey with adjusted gross income for the 2012 tax year of $35,550. Laura's employer withheld $3,300 in state income tax from her salary. In April of 2012,...
-
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is...
-
In 2020, Adele Company accrued a legal liability of \(\$ 500,000\) for payments expected to be paid (and will be deducted when paid) as follows: 2021 : \(\$ 250,000 ; 2022\) : \(\$ 150,000\); and...
-
A plant asset purchased by Krest Inc. for \(\$ 100,000\) late in 2018 is to be depreciated as follows. In 2020 , taxable income was \(\$ 450,000\) and the tax rate is \(25 \%\). Future enacted tax...
-
The Billboard Company has a deferred tax liability in the amount of \(\$ 14,000\) at December 31, 2020, relating to a \(\$ 40,000\) installment sale receivable, \(\$ 20,000\) of which is collected in...
Study smarter with the SolutionInn App