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# Introduction to Supply Chain Management Homework Assignment #1 (100 Points) 1

Introduction to Supply Chain Management

Homework Assignment #1
(100 Points)

 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

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