Contemporary Studies in Economic, Finance and Banking (CSEFB)
Vol. 3 No. 2 (2024)

DEMAND FORECASTING: A CASE STUDY OF THE INDONESIAN TOBACCO INDUSTRY

Bagaskara, Hilman (Unknown)
Fajri ananda, Candra (Unknown)



Article Info

Publish Date
20 Jun 2024

Abstract

The tobacco industry, as one of the major industries in Indonesia, has experienced consistent growth. Despite being burdened by stringent regulations; tobacco products still maintain high demand among consumers. Forecasting serves as a crucial tool for every industry, aiding in decision-making and planning. ARIMA is one of the reliable forecasting methods, yet it remains open for further development. This study aims to compare ARIMA and SARIMAX, which incorporates seasonal aspects and external variables, namely weighted tariffs and affordability, to determine which of these forecasting models is more accurate. Through the execution of the equations, this research has demonstrated that SARIMAX outperforms ARIMA with a lower Mean Absolute Percentage Error (MAPE) score of 7.63 compared to ARIMA's more accurate MAPE score of 10.8. These findings indicate that SARIMAX is more accurate, as evidenced by its lower MAPE score of 7.63.

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Journal Info

Abbrev

csefb

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Publish all forms of quantitative and qualitative research articles as well as other scientific studies related to the fields of Economics, Finance, and ...