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The operations manager using a combination of methods has forecast sales of Lomi Cup Orders at the local LomiHaus carinderia. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a naive forecast. What is the MAD of the manager’s forecast? If the manager used a Naïve Forecast instead, what is the MAD? Which MAD is better?

The operations manager using a combination of methods has forecast sales of Lomi Cup Orders at the local LomiHaus carinderia. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a naive forecast. What is the MAD of the manager’s forecast? If the manager used a Naïve Forecast instead, what is the MAD? Which MAD is better?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The operations manager using a combination of methods has forecast sales of Lomi Cup Orders at the local LomiHaus carinderia. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a naive forecast.

  • What is the MAD of the manager’s forecast?
  • If the manager used a Naïve Forecast instead, what is the MAD?
  • Which MAD is better?
Unit Sales Manager's Forecast Month January February March 52 61 73 April Мay June 79 66 51 July August September October November 47 50 44 55 30 52 55 42 74 60 December 125 75
Transcribed Image Text:Unit Sales Manager's Forecast Month January February March 52 61 73 April Мay June 79 66 51 July August September October November 47 50 44 55 30 52 55 42 74 60 December 125 75
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