Case Study - Forecasting for Stocks

Will Smith has a vegetable stall in one of Fiji's renowned Marketing mall. His business has been plagued with under-stocking and over-stocking problems for some time now. When he under-stocks, he loses sales as customers move to competing stalls. When he over-stocks, he is left with unsold vegetables. These are perishable and cannot be kept long for later sales. Smith is concerned with how he can minimize these losses stemming from under and over-stocking.

Note: 2 Quantitative Forecasting methods involved for the above case study are:

• Casual or Explanatory
• Time Series which is further divided into Smoothing & Decomposition method

REQUIRED:

1. Using the 2 quantitative forecasting methods (Casual and Time series), how he can improve his stocking?
2. Justify the 2 methods by linking it to the business being discussed in the case study strictly