2. Rosa\'s Italian restaurant wants to develop forecasts of daily demand for the

Question

2. Rosa's Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the week. Mario, the manager, has collected information on the number of customers served each day for the past two weeks. If Mario expects total demand for next week to be around 350, what is the forecast for each day of next week? Number of Customers Week 1 Day Tuesday Wednesday Thursday Friday Saturday Sunday Week 2 48 32 30 97 52 36 35 89 98 65 69

Explanation / Answer

Here First we will calculate the seasonal index for each day.

First we take sum for two weeks and take sum for it and then divide it by the sum of the total demand.

Seasonal factor (for a particuler day) = (Demand for week 1 for any particular day+ Demand for week 2 for any particular day)/ (Total demand for day 1 + total demand for day 2)

Now for demand for week 3 for any particular day.

Demand (Week 3) = seasonal index * Total week 3 demand/6

so the whole thing is represent in the table.

Day Week 1 Week 2 Sum Seasonal Index Demand for week 3 Tuesday 52 48 100 0.8 46.67 Wednesday 36 32 68 0.544 31.73 Thursday 35 30 65 0.520 30.33 Friday 89 97 186 1.488 86.80 Saturday 98 99 197 1.576 91.93 Sunday 65 69 134 1.072 62.53 Sum 375 375 750 6 350

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