Table 8.8
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly. Recent demand has been:

-Use the information from Table 8.8. The pizza shop manager is looking for a forecasting approach that will forecast her demand within 0.5 pizzas. If the actual demand for week #7 was 39 pizzas, which of the combination forecasts came closest to predicting this demand?
A) simple moving average and weighted moving average forecast
B) simple moving average and exponentially smoothed forecast
C) weighted moving average and exponentially smoothed forecast
D) week #7 demand of 39 is within 0.5 pizzas for all three of these combination forecasts, and thus all of them are appropriate

Question

Table 8.8
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly. Recent demand has been:
 
-Use the information from Table 8.8. The pizza shop manager is looking for a forecasting approach that will forecast her demand within 0.5 pizzas. If the actual demand for week #7 was 39 pizzas, which of the combination forecasts came closest to predicting this demand?
A) simple moving average and weighted moving average forecast 
B) simple moving average and exponentially smoothed forecast 
C) weighted moving average and exponentially smoothed forecast 
D) week #7 demand of 39 is within 0.5 pizzas for all three of these combination forecasts, and thus all of them are appropriate

Quizplus · Accepted Answer

We need a forecasting approach that will forecast demand within 0.5 pizzas. Looking at the mean absolute deviation (MAD) and mean squared error (MSE) for the different forecasting approaches, we see that the weighted moving average and exponentially smoothed forecast have the lower MAD and MSE values, which indicates that they are more accurate. Therefore, the best choice is C, the weighted moving average and exponentially smoothed forecast.

Table 8.8 The Manager of a Pizza Shop Must Forecast Weekly Demand