1.A salesforce estimate may be used to forecast future demand when data are unavailable. This technique suffers when:

A.a salesman is unable to distinguish between customer wants and needs.

B.the sales force estimates are for intermediate time horizons.

C.the sales force estimates are aggregated to make an overall estimate for demand.

D.the sales territories are broken down into region or by product

Exhibit 2

Demand = 5,200 units/year

Standard deviation of weekly demand = 11 units

Ordering costs = $45/order

Holding costs = $2/unit/year

Cycle-service level= 90% (z for 90% = 1.28)

Lead-time = 3 weeks

Number of weeks per year = 52 weeks

a.Use the information in Exhibit 2. If a firm uses the continuous review system to control the inventory, what would be the order? (2 Points)