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Forecasting in foodservice: model development, testing, and evaluation
J L Miller1, P A Thompson, M M Orabella
1Department of Hotel, Restaurant, Institution Management and Dietetics, Kansas State University, Manhattan 66506.
Abstract:
This study was designed to develop, test, and evaluate mathematical models appropriate for forecasting menu-item production demand in foodservice. Data were collected from residence and dining hall foodservices at Ohio State University. Objectives of the study were to collect, code, and analyze the data; develop and test models using actual operation data; and compare forecasting results with current methods in use. Customer count was forecast using deseasonalized simple exponential smoothing. Menu-item demand was forecast by multiplying the count forecast by a predicted preference statistic. Forecasting models were evaluated using mean squared error, mean absolute deviation, and mean absolute percentage error techniques. All models were more accurate than current methods. A broad spectrum of forecasting techniques could be used by foodservice managers with access to a personal computer and spread-sheet and database-management software. The findings indicate that mathematical forecasting techniques may be effective in foodservice operations to control costs, increase productivity, and maximize profits.