FORMATIVE ASSESSMENT $2$

$[100$ MARKS$]$

Read the insert below and answer the questions that follow

Procter & Gamble $($P&G$)$ is a multinational consumer goods corporation and one of the world's largest and most recognized

companies in its industry. Founded in $1837$ by William Procter and James Gamble, the company has grown to become a

global leader in the production and marketing of a wide range of household and personal care products. $P$&$G$ is known for

its extensive and diverse portfolio of consumer goods, including beauty and grooming products, health and wellness items,

household care, and baby care products. Some of its well$-$known brands include Pampers, Tide, Gillette, Pantene, Olay,

and Crest. Procter & Gamble is a global consumer goods giant with a rich history, a diverse product range, and a

commitment to innovation and sustainability. Its household brands are fixtures in many homes worldwide, reflecting its

influence and impact on the consumer goods industry.

Jon R Moeller, the CEO of Procter and Gamble $($P&G$)$ has requested your services in responding to some of the strategic

issues facing the operations management function of the organisation. He has provided you with a number of scenarios that

the organisation has been exposed to and thus requests that you draft a report providing the best response in dealing with

each scenario.

As an analyst you have been requested to utilise the exponential smoothing technique to

predict merchandise returns in one of the branches for P&G$.$ Given an actual number of

returns of $154$ items in the most recent period completed, a forecast of $172$ items for that

period, and a smoothing constant of $0\mathrm{.}3,$ determine the forecast for the next period? And

comment on how the forecast would change if the smoothing constant were adjusted to

$0\mathrm{.}6?$ Your response should clearly explain the differences in terms of responsiveness.