Using the following data, forecast roast beef portions for next Friday: last time roast beef sold 96 of 444 entrees; the five-week average is 436; 96/444 = 21.6%. What is the forecast?

Using the following data, forecast roast beef portions for next Friday: last time roast beef sold 96 of 444 entrees; the five-week average is 436; 96/444 = 21.6%. What is the forecast?

• A. 101
• B. 95
• C. 98
• D. 94

Answer: (B)

This uses a sales-m mix approach: forecast roast beef portions by applying the observed proportion of roast beef in entrees to the projected total number of entrees for next Friday. The proportion is 96 out of 444, which is 96/444 ≈ 0.216 (21.6%). Apply this to the five-week average total entrees (436): 436 × 0.216 ≈ 94.3. Since you need a whole number for portions, round. Often planners round up to avoid stockouts, so you’d forecast 95 portions.

This uses a sales-m mix approach: forecast roast beef portions by applying the observed proportion of roast beef in entrees to the projected total number of entrees for next Friday. The proportion is 96 out of 444, which is 96/444 ≈ 0.216 (21.6%). Apply this to the five-week average total entrees (436): 436 × 0.216 ≈ 94.3. Since you need a whole number for portions, round. Often planners round up to avoid stockouts, so you’d forecast 95 portions.