Reference no: EM133433955

Assignment:

Forecasting is particularly important in the foodservice industry where perishability is a major concern (Kimes et al., 1998). Accurate forecasting can ensure adequate food production; improve inventory/staffing precision; and increase manager confidence and employee morale, and customer satisfaction. However, many casino restaurants' operators currently predict customer counts solely based on their managers' intuition or guess-estimation from past experiences. Nevertheless, even simple mathematical methods, such as a naïve model, a simple moving average model, or a single exponential smoothing model have been suggested to outperform the intuitive experts' assessments (McCahon & Miller, 1991). Despite the importance of accurate forecasting, most foodservice operators still only rely on their intuition or experience to estimate the future demand in the foodservice industry.