United Colors of Benetton is facing a serious problem.The global fashion garment manufacturer and retailer is well known for its speed of new product introduction.The firm is planning to introduce its 2017 summer collection and wants to estimate demand.Demand levels from past years are shown below.

Question

United Colors of Benetton is facing a serious problem.The global fashion garment manufacturer and retailer is well known for its speed of new product introduction.The firm is planning to introduce its 2017 summer collection and wants to estimate demand.Demand levels from past years are shown below.
United Colors of Benetton is facing a serious problem.The global fashion garment manufacturer and retailer is well known for its speed of new product introduction.The firm is planning to introduce its 2017 summer collection and wants to estimate demand.Demand levels from past years are shown below.

Quizplus · Accepted Answer

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The answer must include the five important factors is selecting a model: (1) user and system sophistication; (2) time and resources available; (3) user or decision characteristics; (4) data availability; (5) data pattern. Because the firm has the demand pattern available for the past nine years, it can use a time series model such as simple exponential smoothing, with a larger value of alpha to identify the more recent increases in the demand pattern. However, students' answers can vary according to cost, accuracy, and other factors.

United Colors of Benetton Is Facing a Serious Problem