Forecasting methods, Corporate Finance

Assignment Help:

In this paper, we propose new forecasting methods based on advance demand information, and perform a case study to compare them to existing ones based on advance demand information and also to methods based on expert judgments. Numerical results are obtained using data from a large mail order/Internet retailer based in the Netherlands. This company currently bases its forecasts on advance demand information. Based on a data set of around seven hundred SKUs and for two successive summer seasons, we compare the accuracy of the various methods based on advance demand information. For a smaller subset of around one hundred SKUs, we also obtained forecasts from a number of company experts. For this subset, we compare methods based on these expert judgments to methods based on advance demand information.

The remainder of the paper is organized as follows:We will ?rst give an overview of the relevant literature in Section and outline our contributions. In Section, we describe the different forecasting methods. Section introduces the case company and available data in more detail. Finally, we present our conclusions, discuss limitations, and provide directions for further research.


Related Discussions:- Forecasting methods

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

Securitization- technique of bundling and off-loading risks, Question: ...

Question: (a) i. Expected loss= Exposure amount* probability of default* loss given default ii. Positive covenants= covenants that showing the direction to a company. P

Evaluate the total working capital, Question: a) NLTF= Mur150m; WCN= ...

Question: a) NLTF= Mur150m; WCN= 146m; Liquidity= 14m b) Balance Sheet has been solidified by loan from the Holding Company. Had the loan not been prov

Accuracy of initial forecast, The bulk of products is produced in South Eas...

The bulk of products is produced in South East Asia, and hence the lead time to Western retailers is long. The typical lead time from fabric manufacturers is 3 months (Gutgeld and

Calculate the rate of return, Question: A. Explain in details two secur...

Question: A. Explain in details two securities quoted at par and two securities quoted on a discount. B. Calculate the return on a deposit of £ 1,000,000 bearing an annual

Financial management, determine the pay \back period for the project.

determine the pay \back period for the project.

Preview division - forecasting methods, Preview division divides M proporti...

Preview division divides M proportional to preview demand, i.e., each SKU n 2N gets fraction This method is included because it is used by the case company, in combination

Wacc, The cost of capital for a firm can differ from the cost of capital fo...

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

Calculate the present value of a company''s bonds, 1. How do you calculate ...

1. How do you calculate the present value of a Company's bonds? 2. "An analysis of the magnitude and stability of cash flows comparative to fixed charges is very important in de

Mmtheory, the departure from Modigliani-Miller proposition using the agency...

the departure from Modigliani-Miller proposition using the agency cost and information asymmetry theory of capital structure

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