Forecasting demand, Corporate Finance

Assignment Help:

The problem considered is that of forecasting demand for single-period products before the period starts. We study this problem for the case of a mail order apparel company that needs to order its products preseason. The lack of historical demand data implies that other sources of data are needed. Advance order data can be obtained by allowing a selected group of customers to pre-order at a discount from a preview catalogue. Judgments can be obtained from purchase managers or other company experts. In this paper, we compare several existing and new forecasting methods for both sources of data. The methods are generic and can be used in any single-period problem in the apparel or fashion industries. Among the pre-order based methods, a novel 'top-?op' approach provides promising results. For a small group of products from the case company, expert judgment methods perform better than the methods based on advance demand information. The comparative results are obviously restricted to the speci?c case study, and additional testing is required to determine whether they are valid in general


Related Discussions:- Forecasting demand

Describe the mechanism of an interest rate swap, Question 1: Participan...

Question 1: Participants in a recent radio discussion on the WTO were full of ideas. The WTO could do this, the WTO should do that, they said. One of them finally interjected:

Evaluate the capital structure, Question: (a) According to Modigliani a...

Question: (a) According to Modigliani and Miller's Theory of Capital Structure (1963), companies should make maximum use of gearing. Briefly, describe factors which might pr

Calculate effective annual interest rate, Two years ago, Homeless People Lt...

Two years ago, Homeless People Ltd needed to accumulate a total of $600,000 by the end of four years to acquire new facility to house the homeless people in the city.  To do so, Ho

Merger, The Chocolate ice cream company and the vanilla ice cream company h...

The Chocolate ice cream company and the vanilla ice cream company have agreed to merge and form Fudge Swirl Consolidated.Both companies are exactly alike that are located in differ

Determine pay back period and net present value, Determine pay back period ...

Determine pay back period and net present value? A company is considering two projects with the subsequent cash flow streams:   Year           Project A

Answer required ., What will be impact on the operating leverage of a firm,...

What will be impact on the operating leverage of a firm, if it proceeds for additional borrowings?

Ssjdda, As the company''''s sales and earnings increased, so did the demand...

As the company''''s sales and earnings increased, so did the demand for capital. The firm''''s needs included inventory as well as additional space to house the inventory, computer

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd