Cindy’s favorite product in the store is the carrot cookie. Healthy Goods started selling carrot cookies just a few months ago, and they have not kept track of the sell out data. Cindy has been chatting with a few of the cashiers to get a sense of the overall demand for carrot cookies. The cashiers told her the store usually sells around 100 carrot cookies per week, although during the best selling week they can recall 204 carrot cookies were sold, and during a bad week only 49 cookies were sold. If they plan to have 85 cookies in inventory every week, what would be the probability of not fulfilling all the weekly demand?

Cindy’s favorite product in the store is the carrot cookie. Healthy Goods started selling carrot cookies just a few months ago, and they have not kept track of the sell out data. Cindy has been chatting with a few of the cashiers to get a sense of the overall demand for carrot cookies. The cashiers told her the store usually sells around 100 carrot cookies per week, although during the best selling week they can recall 204 carrot cookies were sold, and during a bad week only 49 cookies were sold. If they plan to have 85 cookies in inventory every week, what would be the probability of not fulfilling all the weekly demand?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six months of observations for validation purposes, use the method of moving averages with a carefully chosen span to forecast U.S. retail sales in the next year. Comment on the performance of your model. What makes this time series more challenging to forecast?
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