Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Time-Series Forecasting

Student Tip

Here is the meat of this chapter. We now show you a wide variety of models that use time-series data.

A time series is based on a sequence of evenly spaced (weekly, monthly, quarterly, and so on) data points. Examples include weekly sales of Nike Air Jordans, quarterly earnings reports of Microsoft stock, daily shipments of Coors beer, and annual consumer price indices. Forecasting time-series data implies that future values are predicted only from past values and that other variables, no matter how potentially valuable, may be ignored.

Decomposition of a Time Series

Analyzing time series means breaking down ...