Operations Management: Processes and Supply Chains, 12th Edition

Solved Problem 2

The Polish General’s Pizza Parlor is a small restaurant catering to patrons with a taste for European pizza. One of its specialties is Polish Prize pizza. The manager must forecast weekly demand for these special pizzas so that he can order pizza shells weekly. Recently, demand has been as follows:

Week	Pizzas	Week	Pizzas
June 2	50	June 23	56
June 9	65	June 30	55
June 16	52	July 7	60

1. Forecast the demand for pizza for June 23 to July 14 by using the simple moving average method with $n=3.$ Then, repeat the forecast by using the weighted moving average method with $n=3$ and weights of 0.50, 0.30, and 0.20, with 0.50 applying to the most recent demand.

2. Calculate the MAD for each method.

Solution

1. The simple moving ...