DEMAND FORECASTING AND PRODUCTION PLANNING IN THE FASHION INDUSTRY IN LAGOS STATE, NIGERIA.
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Abstract
Description
The purpose of this study is to evaluate the influence of demand forecasting on production
planning in the fashion industry in Lagos State, Nigeria. The study aims to address the
challenges of inventory control, resource allocation, and pricing strategies by analyzing the
effectiveness of simple moving average (SMA), weighted moving average (WMA), and
exponential smoothing in predicting demand and optimizing production processes. Utilizing
a mixed-methods approach, the study combines primary data collected through 105 filled
questionnaires using random and purposive sampling techniques, analyzed using SEM-PLS,
alongside secondary data from a clothing store, organized and analyzed with Microsoft Excel
for historical sales and inventory data. The findings reveal that demand forecasting
significantly impacts production planning (β=0.565, t=9.132, p < 0.05). Exponential
smoothing is found to be particularly effective in forecasting prices, while SMA proves
beneficial for inventory management despite its limitations. The study highlights that while
SMA provides basic forecast accuracy, WMA and exponential smoothing offer superior
precision and adaptability in resource allocation and pricing strategies. These insights
underscore the critical importance of selecting appropriate forecasting methods to optimize
various aspects of production planning in the fashion industry, ultimately enhancing
operational efficiency and strategic decision-making.
Keywords
H Social Sciences (General), HB Economic Theory