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    Chp. 8 Outline

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    events -important bc it drives all other business decisions (forecasting drives the plan‚ plan is made due to forecast) -poor forecasting can lead to loss of sales of increase costs. Leave company unprepared forecasting is an ongoing process that is always changing as new information and data become available. 2) Planning- selecting actions in anticipation for the forecast. 1) scheduling existing resources- use resources in the most efficient way possible 2) determining future resource

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    Leitax Case Analysis

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    introduced in the photographic industry. Starting in 1998‚ price has been falling rapidly. In addition‚ the development of CMOS allowed digital camera to not only capture professional market‚ but also enter consumer market. It was estimated that in 2006 forecast would peak with 63% penetration rate for digital cameras in the US. After 2006‚ the growth rate was expected to fall negative. Product lives for digital cameras had been shortened. While an average life was between 17 and 22 months‚ high-end‚ feature

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    Managerial Report

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    a case can be made‚ Carlson is entitled to compensation for excess sales it would have earned in addition to ordinary sales. Managerial Report Prepare a report for the managers of the Carlson Department Store that summarizes your findings‚ forecasts‚ and recommendations. Include the following: 1. An estimate of sales had there been no hurricane. 2. An estimate of countywide department store sales had there been no hurricane. 3. An estimate of lost sales for the Carlson Department Store for

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    BMI View: Data released by the Turkish drugmakers association for 2013 sales corresponds with our own forecasts. We have also modified our pharmaceutical sales forecast for 2014 and beyond to reflect the volatile exchange rate situation. We now see Turkey’s lustre as an emerging pharmaceutical market regressing over the medium term. We believe that the business environment will continue to impede the industry and see very little scope for the central government to enact business-friendly reform in

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    plan‚ the bank was not comfortable with the company’s revenue forecast and needed further convincing. Dumutri got help from his son to prepare a forecast for visitors to Las Vegas in 2013. Revenue for the limousine service is driven by the amount of visitors to the area. Therefore‚ in order to forecast the company’s revenue‚ Denis will have to prepare a forecast for visitors to Las Vegas using different forecasting methods. The best forecast method will be chosen and will help determine the growth of

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    Types of Forecasting Methods

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    FORECASTING METHODS Qualitative Methods Executive Opinion Market Research Delphi Method Approach in which a group of managers meet and collectively develop a forecast. Approach that uses surveys and interviews to determine customer preferences and assess demand. Approach in which a forecast is the product of a consensus among a group of experts. QUANTITATIVE FORECASTING METHODS Quantitative forecasting methods can be divided into two categories: time series models

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    Forecasting Demand

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    for the company for developing new products or product line in the marketplace. Forecasting time horizons. A forecast is classified by the future time horizon into three categories. - Short-range forecast has a time of less than three months and up to one year. - Medium-range forecast spans form three months to three years. - Long-range forecast has a time for three years or more in time span. The influence of product life cycle. Most successful products

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    Supply Chain

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    Chapter 4: Multiple Choice Questions 1. Forecasts a. become more accurate with longer time horizons b. are rarely perfect c. are more accurate for individual items than for groups of items d. all of the above e. none of the above One purpose of short-range forecasts is to determine a. production planning b. inventory budgets c. research and development plans d. facility location e. job assignments Forecasts are usually classified by time horizon into three categories a. short-range‚ medium-range

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    412 and p = .689. A stationary model seems appropriate since the linear term‚ Period‚ is not significant. 7.1 c. Forecast for January -- 19‚ for upcoming year – 12*19 = 228 7.1 d. Forecast for January -- 20.4 e. 4 month moving average. MAD is 1.72 7.2 See files Ch7.2a.xls and Ch7.2b.xls a. Forecast for January -- 18.86 7.2 b. See file Ch7.2b.xls Forecast for January -- 20.28 c.  = .6 gives the lower MSE 7.3 See file Ch7.3.xls a. b. Coefficients Standard

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    Forecasting Forecast can help managers by reducing some of the uncertainty‚ thereby enabling them to develop more meaningful plans than they might otherwise. A forecast is a statement about the future. Features common to all forecasts 1. The same underlying causal system that existed in the past will continue to exist in the future. 2. Forecasts are rarely perfect; actual results usually differ from predicted values. 3. Forecasts for groups of items tend to be more accurate than forecasts for individual

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