Question

Problem 17 The Harris Hotel forecasts its breakfast customers based on (1) its prior night room guests count, (2) an estimated number of diners from the local community, and (3) an estimated number of guests who are staying at a nearby limited-service hotel and will have breakfast at the Harris Hotel. The formula used is as follows: X = 30+.8(B) + 2(C) where X = forecasted breakfast customers B = number of prior night room guests at the Harris Hotel C = number of prior night room guests at the nearby limited-service hotel The estimated numbers of hotel guests are as follows: 200 100 Sunday Monday 300 140

Answer 1

Ans:

1.

Calculation of number of breakfast estimating for monday through saturday:

Forecasting of breakfast customer:

X= 30+.8(B)+.2(C)

Details for staurday:

B= 100

C= 90

X= 30+.8(100)+.2(90) = 128

Expected number of breakfast for Monday through saturday is 128.

2. Three period moving approach is 3 period moving average forcast on the basis of actual demand values in past 3 periods. Which gives a better basis of forcast than the casual approach used by the Harris Hotel. The basis used for last 3-period actual demand will help Harris hotel to get more accurate forcasting result. Hence the casual apporoach used by Harris hotel for forcasting for monday based on saturday guests is not appropriate.