A Small Family-Owned Restaurant Uses a Seven-Day Moving Average Model

question 39

Essay

A small family-owned restaurant uses a seven-day moving average model to determine manpower requirements. These forecasts need to be seasonalized because each day of the week has its own demand pattern. The seasonal indices for each day of the week are: Monday 0.445; Tuesday 0.791; Wednesday 0.927; Thursday 1.033; Friday 1.422; Saturday 1.478; and Sunday 0.903. Average daily demand based on the most recent moving average is 194 patrons. What is the seasonalized forecast for each day of next week?

---

Definitions:

All Capital Letters

The use of uppercase letters for an entire word or phrase, often to grab attention or denote emphasis.

E-Mail

Allows information to be sent electronically through a system that delivers the message immediately to any number of recipients.

Markup

The dollar amount added to the product cost to determine its selling price.

Product Cost

The total expense incurred to produce and deliver a product to the market, including raw materials, labor, and overhead costs.