A request has gone out to all salespeople in a company to make forecasts for their sales territories for next year. These forecasts will be aggregated by product lines, districts, and regions and-finally-at the national level. Describe the problems in using this forecast for planning aggregate levels of operations for the next year and for specific inventory and scheduling decisions.
Answer to relevant QuestionsIn the Stokely Company, marketing makes a sales forecast each year by developing a sales force composite. Meanwhile, operations makes a forecast of sales based on past data, trends, and seasonal components. The operations ...Qualitative forecasting methods should be used only as a last resort. Agree or disagree? Comment. A candy store has sold the following number of pounds of candy for the past three days. Assuming α = .4, A0 = 16, and MAD0 = 1, complete the following table. The Yummy Ice Cream Company projects the demand for ice cream by using exponential smoothing. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold. a. Using α = .1, prepare a ...Management of the ABC Floral Shop feels that its sales are seasonal in nature with a monthly seasonal pattern and no trend. The demand data and seasonal ratios for the past three years are given as follows. a. Calculate a ...
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