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At the beginning of each year, a large firm’s indirect procurement organization holds a brainstorming session. These sessions produce many great ideas and foster support among the procurement team. However, after a few years, support for the brainstorming sessions begins to diminish, and the projects discussed are pushed aside in order to deal with more pressing issues. In this situation, which of the following would be the BEST course of action to take?
A sourcing manager needs to outsource production in order to meet demand for a specific product. The internal production schedule and forecasted sales have been provided for the next nine months. Internal production follows a level schedule of 4,000 units per month and up to 7,000 units may be stored in inventory. There is no beginning inventory for January. During what month(s) will outsourced production be required to meet forecasted sales?
MonthJanFebMarAprMayJunJulAugSep
Unit Sales3,0003,0004,0001,0009,0005,0004,0003,0005,000
A firm collects the following forecasted and actual demand for a certain part:
PeriodForecastActual
KI30311
22531
32826
42520
What is the absolute value of the forecast error?
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