ABC Company in southwest UK manufactures leather lacing andkits. It consists of 5 Leather Factory stores of, which three arelocated in the UK and others are located in Europe. Recently theoverall demand for its products has declined. Therefore,intermediate-term attempts to control costs have centered onforecasting demand and reducing inventory costs. To help ABCCompany better manage its resources and more effectively respond todemand, management team is considering ways to improve its planningprocess by finding demand/inventory management methods that canreasonably predict demand six to eight weeks into the future, andestablishing procedures for managing inventory costs.
- Of the time series models (including the moving average andweighted moving average, and exponential smoothing) which one doyou consider ABC Company may use? Why?
