Operations Research, Systems Engineering and Industrial Engineering Commons^™

Julian's Forecasting, Krista R. Bowdle

Industrial and Manufacturing Engineering

This report focuses on developing a solution to a current problem faced at Julian’s Cafe and Bistro. The problem is that inaccurate order quantities are leading to inventory shortage and surplus which is causing unnecessary profit loss. After accessing and analyzing historical sales data, several forecasts were created using various approaches. After assessing each method and applying a mean absolute percentage error to see how accurate the forecasts were, the seasonal forecast with removing outliers initially was the selected method. After, this method was used to forecast the top three selling items at Julian’s and make demand predictions for busy …