In the retail store, which is under study, the store manager fol-
lows a seasonal naïve forecasting model to place orders. The sea- sonal naïve forecasting model
forecasts the daily demand based on the previous week sales on the same day-of-the-week. Whenever
there are promotions and/or holidays in the previous week, the additional sales due to promotions
and holidays are discarded from the corresponding forecasts. Likewise when there are promotions
and/or holidays in the forecasting week, the additional sales due to promotions and holidays are
added to the corresponding forecasts. With reference to Section 3.4, the seasonal naïve forecasting
model is going to act as a benchmark model to represent a baseline