Describe how a domestic food chain with plans for expanding into China would be able to use a forecasting model. The qualitative method of forecasting would be a good model that China would be able to use to describe how a domestic food chain would expand there. The qualitative method can be used by management in the area of their expertise and opinion. The qualitative method will help to determine a long term strategic planning process. It would help to decipher if another food chain of the same in another area would be a success and whether it would be feasible to continue operation of both. Using the qualitative method would allow the firm to recognize their own capabilities and resources, and markets for their products and services and give them an idea of the food chain would be a success. Describe how a domestic fast food chain with plans for expanding into China would be able to use a forecasting model. Using forecasting methods helps a company plan for future production using past results. The moving average method uses data from past by averaging a specific time period to predict demand in the next period. In real-life, businesses could use market trends help determine the expectations of customer demands that will decide whether to increase or decrease production of an item that is currently available for sale. References Taylor, B.M. (2010). Introduction to management science (10th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
What is the difference between a causal model and a time- series model? Give an example of when each would be used. A causal model attempts to develop a mathematical relationship between the item being forecast and factors that cause it to behave the way it does . Causal models are used by researchers in the areas of social and behavioral sciences. It is used in experimental research to determine if one variable causes a change in another variable. A...
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