Question: The Coffee Shop around the Corner ( CS ) is famous for its fresh - made muffins. Hank, the owner of CS , knows that
The Coffee Shop around the Corner CS is famous for its freshmade muffins. Hank, the owner of CS knows that the demand for muffins depends very much on the time of the day: The demand is high in the morning, decreases in the afternoon hours, and is at its lowest in the evening. Hank is having trouble deciding how many muffins to make for each period of the day. He asked you to help him forecast the demand. If you do a good job in forecasting the demand for tomorrow, Hank will pay you to do this job on a recurring basis. The following is the demand data Hank collected in the past three days:
Day
Period Morning Afternoon Evening Morning Afternoon Evening Morning Afternoon Evening
Demand
Using a period moving average, forecast the morning, afternoon and evening demand for the muffins on Day Hint: You will first need to deseasonalize the historical demand data using centered moving averages. To calculate the CMA for periods and take the CMA averages of periods and respectively
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
