1. Develop forecasts using regressions of sales on each of the series of rain forecasts respectively. Calculate...
Question:
1. Develop forecasts using regressions of sales on each of the series of rain forecasts respectively. Calculate the MFE (bias), MAD, and MAPE for the two forecasting models. Which rain forecast seems to be better at predicting Rachel’s daily sales, the 5 day forecast or the 2 day forecast?
2. How can Rachel make use of the rain forecasts to improve her forecasts of total sales each day? What other changes to her business would she need to make in order to capitalize on this information?
3. How are order lead time and forecasting accuracy related to each other in this case?
4. Plot and visually inspect the sales data. What other suggestions would you give Rachel for improving her sales forecasts? What type of time series model would be appropriate? Why?
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Step by Step Answer:
1 The tables and plots below indicate that the 2day forecast provides better predictions of Rachels daily sales This is to be expected Nearer term forecasts are usually more accurate ie 2day forecast ...View the full answer
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
