Question
8. As you are explaining some of these to Chitra, your boss happens to overhear you and walks in to make a comment. He says
8. As you are explaining some of these to Chitra, your boss happens to overhear you and walks in to make a comment. He says that in reality while we forecast monthly and split those into weekly forecasts based on commercial input, the weekly forecasts have lower accuracies than the monthly forecasts. In reality, there can be a slight difference in the timing of the actual orders coming from customers. At the broad level, the inaccuracy extends to one week behind and one week forwards. So he wants you to tweak the assumption an order vs forecast as follows. a. Sales orders must first consume the forecasts for that week for which the order is requested for. b. If the actual orders exceed the forecasts, then one must assume it could be for the previous week and consume that forecast if available. c. If the actual orders exceed forecasts and there is no unconsumed forecast ineither the same week or the previous week, then it should be assumed to be for the next week. d. All the sales orders come in chronological order, so the orders requested for W1 come in before the orders requested for W2.
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