MKT $364-$ Operations Management

Case #$2-$ Forecasting

Background

Read the Southwestem University $($B$)$ case on Page $152$ of the textbook

Solution Requirements

Utilize Microsoft Excel to complete the following steps:

Create a linear trend forecast for the next ten games. Hint You will have to create a linear

trend equation for each game of the season across all six years. In other words, use all six

years of info for Game $1$ to create a Game $1$ trend equation. Then repeat for Game $2$

through Game $5.$ Once you have the equation for each of the five games, a forecast can be

made for each game across the next two jears to give you ten game forecasts.

For example:

Compute seasonal indices for each game. Use this to adjust the linear trend forecast

generated in the previous step for the next ten games. Hint: Use games as "seasons" in the

six years of data, so treat each game like a month in a year in your calculations.

Calculate the MAD, MSE, and MAPE. Assume the actual demand for the next ten games is:

Use the forecast and information in the case on ticket prices to project revernue for the next

two seasons.