Forecasting of a business based upon seasonality indices


Case 1: Forecasting Lost Sales (p 232, 12th Ed.) This case examines the forecasting of a business based upon seasonality indices. The company experienced a catastrophic event and the issue is to provide a comparison between what history has shown for a given period and use that to forecast the lost business base due to the catastrophic event. The case provides a good introduction into how a business problem can be solved using Linear Programming and computer software. You will then be able to use the software output to interpret the results. Even more importantly, this case should provide insight into how various small changes to the original model can affect the optimal solution. Its value is that it shows very quickly that the use of models provides a “base model” that can then be used to further refine the solution in order to better meet the business needs. The case should stress the economic interpretation of duality in linear programming.

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Business Management: Forecasting of a business based upon seasonality indices
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