Chapter 4, 5 assignment Example | Topics and Well Written Essays - 500 words

Chapter 4, 5 - Assignment ExampleThe techniques used for this model are simple series moving averages and weighted moving averages where data from past periods are summed and divided by the number of time periods. The only difference among simple and weighted moving averages fall on more weights being placed on more recent data for the latter technique.Finally, the cause and effect model assumes that factors are related to demand and that relationships between cause and effect are used to estimate future demands. Techniques for this model are simple and threefold regressions where distinguishing factor depends on the number of variables. For simple, there is only one variable while for multiple, the demand is symbiotic on more than one variable.The enamour forecasting technique or model considers varying factors, to fun current situation, time and funds available, and accuracy of the technique. As initially proffered, the judgmental approach is most appropriate for the introdu ction of new product were no historical data is available. For example, a global organization quest to expand in a new market, with no previous experience, could use judgmental forecasting. Should the organization select to conduct a survey to realise the possible demand for a new product, the company moldiness consider time, money and efforts for doing so.Another forecasting issue is determining the accuracy of the forecast. For the analog technique, the company requires development a similar product or service to project the future demand of their own product. For example, a company planning to market bottled water uses the performance of a competitive product of the same qualities to establish demand. Some factors could be similar but the company must consider location of the target market, as well as other environmental factors that could influence demand.The following product characteristics influence packaging and materials handling physical characteristics,