[SOLUTION] Type of Forecasting Method
Select a product that you can purchase at a grocery store or at a discount retailer and respond to the following: · Identify the factors that would impact the demand for the product that you have selected. · If you wish to develop a forecast of the demand for this product in a future month (or for other appropriate time period), identify what type of forecasting method would be appropriate. · Identify the variables for which you would need values to be able to calculate an actual forecast for a future month (using the forecasting method you selected). · Create an equation that you believe would accurately predict the demand for this product in a future month and solve the equation to derive a forecast for this product in the future month that you had selected. Justify your answers using examples and reasoning. Comment on the postings of at least two peers and state whether you agree or disagree with their views. This weeks discussion asks you to choose a product from a retail establishment and work through a demand forecast. Choose a product that you are very familiar with and quickly sketch out a rough picture of the product and its customers in the marketplace. Dont worry about a forecasting model yet I first want you to get a feel for the demand for this product in the context of other competing products. What are the primary drivers for the demand of this product? Describe the relative elasticity of demand. Are there some macro factors that could affect demand, e.g., disposable income, national advertising, distribution channels, federal and state subsidy programs, etc. Once you have a feel for the market for this product, now think about an appropriate forecasting model, based on your reading from the text.
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