Case M&L - Case: M & L Manufacturing 1. The...

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1. The potential benefit of using a formalized approach to forecasting is that it will be easier to utilize the computer and easier to quantify the information. A less formalized approach is more likely to utilize personal intuition. For small forecasting problems, intuition may involve personal bias which may be reflected in the forecast. As the forecasting problem gets larger, it will be impossible to solely rely on a less formalized approach because a person’s intuition will be unable to process the large quantity of information. 2. Product 1 Plotting the data for Product 1 reveals a linear pattern with the expectation of demand in week 7. Demand in week 7 is unusually high and does not fit the linear trend pattern of the remaining data. Thus, the demand for the 7 th week is considered an outlier. There are different ways of dealing with outliers. A simple and intuitive way is to replace the demand for the week in question with the average demand from the
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This note was uploaded on 04/28/2010 for the course MBA 20134 taught by Professor Lee.f.u during the Spring '10 term at Accreditation Commission for Acupuncture and Oriental Medicine.

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Case M&L - Case: M & L Manufacturing 1. The...

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