Case study for Assignment 1's Task 1 (total of 10 points) Henry's Baking Company markets croissants through a chain of food stores. It has been experiencing overproduction and underproduction because of forecasting errors. The following data are its demand in dozens of croissants for the past four weeks. Croissants are made for the following day; for example, Sunday's doughnut production is for Monday's sales, Monday's production is for Tuesday's sales, and so forth. The bakery is closed Saturday, so Friday's production must satisfy demand for both Saturday and Sunday. You are required to prepare a business report for the managers of Henry's Baking Company, discussing: a. Review the literature on forecasting and discuss (3 points): - why is forecasting necessary for Henry's Baking? - potential forecasting techniques that could be applied in this case. b. Present the daily forecast for the whole week 5 on the following basis with detail explanation, and discuss the pros and cons of each technique (4 points, 1 for each): - Moving average. - Weighted moving average - Exponential Smoothing - Linear trend c. The CEO of Henry's Baking still does not feel happy with those forecasts, as he wonders if there is any significant seasonal variation in the business. He now asks you to check this and conduct the forecast to see if there is any improvement. (3 points)