Operations and Supply Chain Management
Operations and Supply Chain Management
14th Edition
ISBN: 9780078024023
Author: F. Robert Jacobs
Publisher: MCG
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Chapter 18, Problem 3AE
Summary Introduction

Case summary:

Company S runs a global supply chain and is required to supply to more than 17,000 stores. The coffeemaker L is sold to these stores which has steady sales. The coffeemaker’s sale is not seasonal; however, its demand fluctuates. Company S wants to estimate forecasts by using simple moving average or exponential smoothing.

To Compute: The most accurate demand forecast model by using mean absolute deviation (MAD), mean absolute percent error (MAPE), and tracking signal.

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