ABC Company in southwest UK manufactures leather lacing and kits. It consists of 5 Leather Factory...

90.2K

Verified Solution

Question

Operations Management

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?

Answer & Explanation Solved by verified expert

4.4 Ratings (591 Votes)

According to the data givenABC company will adopt EXPONENTIAL SMOOTHING METHOD Exponential smoothing is a time series forecasting method for univariate data Exponential smoothing forecasting methods are similar in that a prediction is See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member