A A A AaBbCcDE AaBbCcDdE AO AA EEEEE av Normal No Spacing 10 Points 10 Points 10 Points 10 Points 10 Points What is the difference between qualitative forecasting techniques and quantitative forecasting techniques? When is it more appropriate to use a qualitative forecast? When is it more appropriate to use a quantitative forecast? Monthly sales for the RUOK Company Compute the sales forecast for July using for the last 6 months are as follows: the following approaches: Month Units a) 4 month simple moving average January 18,000 February 22,000 b) 4 month weighted moving average March 16,000 using 0.4 for the previous month, 0.3 April 18,000 for 2 months prior, 0.2 for 3 months May 20,000 prior and 0.1 for 4 months prior. June 24,000 Refer to examples on slides 20 & 21 of the Forecasting & Demand Planning deck. The forecasts generated by 2 forecasting methods and actual sales are as follows: Month Actual Forecast 1 Forecast 2 Calculate the Mean Absolute Deviation 269 275 268 (MAD) for each forecast. 289 266 287 Forecast 1 294 290 278 284 298 Forecast 2 268 270 Refer to slides 34 & 35 of the Forecasting 269 268 270 & Demand Planning deck. 260 261 275 275 Finished Product A S 1 2 3 4 What number should Gross Requirements (i.e. demand) 20 20 be placed in the spot Schedule Receipts 25 presently filled with Planned Delivery the X? Projected on Hand Inventory 30 10 15 40 10 Planned Order Releases Quantity - 25: Lead Time = 2; Safety Stock - 10 Finished Product A 1 2 3 4 Complete the Gross Requirements (i.e. demand) 15 40 40 10 Projected on hand Schedule Receipts 50 inventory row Planned Delivery 25 presently filled with Projected on Hand Inventory 40 X X the X? Planned Order Releases 25 Quantity 25 Lead Time = 2: Safety Stock10 292 10 Points 10 Points 274 von 259 271 15 Points 15 Points MAMMA HEM OM 10 Points 10 Points Monthly sales for the RUOK Company Compute the sales forecast for July using for the last 6 months are as follows: the following approaches: Month Units a) 4 month simple moving average January 18,000 February 22,000 b) 4 month weighted moving average March 16,000 using 0.4 for the previous month, 0.3 April 18,000 for 2 months prior, 0.2 for 3 months May 20,000 prior and 0.1 for 4 months prior. June 24,000 Refer to examples on slides 20 & 21 of the Forecasting & Demand Planning deck. The forecasts generated by 2 forecasting methods and actual sales are as follows: Month Actual Forecast 1 Forecast 2 Calculate the Mean Absolute Deviation 269 275 268 (MAD) for each forecast. 289 266 287 Forecast 1 294 290 292 Forecast 2 278 298 284 268 270 274 Refer to slides 34 & 35 of the Forecasting 269 268 270 & Demand Planning deck. 260 261 259 275 271 275 Ciniehad Dunduint A 10 Points 10 Points 00U AWN