Ontario Power Generation has been collecting data on demand for electric power in its western subregion for
Question:
To plan for expansion and to arrange to borrow power from neighbouring utilities during peak periods, the utility needs to be able to forecast demand for each month next year. However, the standard forecasting models discussed in this chapter will not fit the data observed for the two years.
a) What are the weaknesses of standard forecasting techniques as applied to this set of data?
b) Because known models are not appropriate here, propose your own approach to forecasting. Although there is no perfect solution to tackling data such as these (in other words, there are no 100% right or wrong answers), justify your model.
c) Forecast demand for each month next year using the model you propose.
Step by Step Answer:
Operations Management Sustainability and Supply Chain Management
ISBN: 978-0133764345
2nd Canadian edition
Authors: Jay Heizer, Barry Render, Paul Griffin