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

question 38

Multiple Choice

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 believes that a combination forecast might improve her ability to predict future demand, and thus improve keeping fresh ingredients on hand. She decides to use the 3-week simple moving average and exponentially smoothed average forecast, giving them equal weight. The smoothing constant is .10 and the previously forecasted demand for week 6 was 39.28 pizzas. What is her forecast for week #7?

• A) 35.5 pizzas
• B) 37.4 pizzas
• C) 38.2 pizzas
• D) 40.2 pizzas

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Definitions:

Routine Inquiry

A standard or regularly occurring request for information or clarification.

Cost Estimates

An evaluation or approximation of the likely expenses involved in the execution of a project or production of a good.

Goodwill

The positive reputation and relationship a business maintains with its customers, employees, and community, often considered an intangible asset.

Favorable Response

A positive or approving reaction to a query, proposal, or situation.