Advanced Micros, a retailer in computer equipment, accessories and gadgets was established about 5 years ago. Since its inception, the organization has now 3 fairly large sales outlets in the north, east and west of Singapore.
The owners of Advanced Micros have plans to expand the organization’s presence in other parts of Singapore, notably in larger malls with heavier human traffic. They recently recruited you as their Marketing Manager to help improve sales of Advanced Micros. You reckon that a trend analysis of sales and the number of customers patronising Advanced Micos’ retail outlets is one of your priority tasks and have requested your sales executive Chris to retrieve data on the total number of customers patronizing Advanced Micros’ shops over the last four years.
(a) Identify the appropriate forecasting method to analyse the above monthly data on the total number of customers patronizing the retail outlets of Advanced Micros. Provide justifications for the method of anlaysis chosen.
(b) Discuss three (3) limitations that could cause forecasting inaccuracies in your analysis.