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Question 1. United Colors of Benetton is facing a serious problem. The global fashion garment manufacturer and retailer is well known for its speed of new product introduction. The firm is planning to introduce its 2013 summer collection and wants to estimate demand. Demand from past years are shown below.
Year
Demand
(in millions)
Forecast
2004
150
140
2005
170
180
2006
190
2007
270
290
2008
220
2009
250
2010
260
2011
320
280
2012
300
310
Suggest a suitable forecasting method that Benetton could utilize while predicting demand for the upcoming year. Describe the important factors that should be considered while selecting the forecast method.
Question 2. Describe each of the five demand components in a time-series (of past demand data).
assume a firm has an average inventory of 50000 sales of 250000 gross profit of 100000 and net income of 25000. the
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