PLEASE ONLY ANSWER THE SECOND PART. I'VE INCLUDED THE TOP PART FOR REFERENCE.

Question 1 (in total 50%) . ABC Company in southwest UK manufactures leather lacing and kits. It [25%] consists of 5 Leather Factory stores of which three are in the UK and others are in Europe. Recently the overall demand for its products has declined. Therefore, intermediate term attempts to control costs have centred on reducing staff requirements, which account for 40 percent of personnel costs. ABC Company exhibits many of the characteristics that make capacity planning a difficult process: Rapid demand changes. High penalty costs. Limited resources. High carrying costs. To help ABC Company better manage its resources and more effectively respond to demand, management team is considering ways to improve its planning process by finding a forecasting method that can reasonably predict demand six to eight weeks into the future and establishing procedures for rapidly adjusting capacities for sudd surges in demand. Of the time series models (including the moving average and weighted moving average, exponential smoothing, and linear trend line) which one do you consider ABC Company may use? Why? . . 6 Explore how ABC Company can adjust capacity. Discuss the advantages and [25%] disadvantages of following strategies for meeting demands: Use part-time workers Subcontracting Building up and use up inventory Discuss the advantages and disadvantages of Level Strategy and Chase Strategy