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Book part
Publication date: 1 September 2021

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Advances in Business and Management Forecasting
Type: Book
ISBN: 978-1-83982-091-5

Book part
Publication date: 1 September 2021

John L. Stanton and Stephen L. Baglione

Product success is contingent on forecasting when a product is needed and how it should be offered. Forecasting accuracy is contingent on the correct forecasting technique. Using…

Abstract

Product success is contingent on forecasting when a product is needed and how it should be offered. Forecasting accuracy is contingent on the correct forecasting technique. Using supermarket data across two product categories, this chapter shows that using a bevy of forecasting methods improves forecasting accuracy. Accuracy is measured by the mean absolute percentage error. The optimal methods for one consumer goods product may be different than for another. The best model varied from sophisticated, most such as autoregressive integrated moving average (ARIMA) and Holt–Winters to a random walk model. Forecasters must be proficient in multiple statistical techniques since the best technique varies within a categories, variety, and product size.

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