Business Finance - Management supply chain hw 1 Assignment

1

What is the difference between qualitative forecasting techniques and quantitative forecasting techniques?

10 Points

2

When is it more appropriate to use a qualitative forecast?

10 Points

3

When is it more appropriate to use a quantitative forecast?

10 Points

4

Monthly sales for the RUOK Company for the last 6 months are as follows:

Compute the sales forecast for July using the following approaches:

Month Units

January 18,000

February 22,000

March 16,000

April 18,000

May 20,000

June 24,000

a) 4 month simple moving average

b) 4 month weighted moving average using 0.4 for the previous month, 0.3 for 2 months prior, 0.2 for 3 months prior and 0.1 for 4 months prior.

15 Points

15 Points

5

The forecasts generated by 2 forecasting methods and actual sales are as follows:

Month Actual Forecast 1 Forecast 2

1 269 275 268

2 289 266 287

3 294 290 292

4 278 284 298

5 268 270 274

6 269 268 270

7 260 261 259

8 275 271 275

Calculate the Mean Absolute Deviation (MAD) for each forecast.

· Forecast 1

· Forecast 2

15 Points

15 Points

6

What does Collaborative Planning, Forecasting, and Replenishment (CPFR) mean – please explain

10 Points