1. A selected Forecast Model showed the lowest MAD at the beginning of the year with $60.5. If the following three quarters reflected the following MAD: Q2: $60.2 Q3: $75.4 Q4: $78.9 would you stay using this model for the next year? Explain your answer.
2. The EOQ of the product you are purchasing is 20,350units. The supplier runs 40,000units per lot. He wants you to buy all of them since you are the only buyer of this product. What will you do and explain?