Consider Sales & Operations planning. If the costs for hiring and firing employees are very small relative to the inventory holding costs, then which Sales & Operations plan is likely to have the lower total cost?

a) Chase plan.

b) Level plan.

For the next 3 questions, consider the actual demand and the forecast shown below for the past 5 weeks.

Week	Demand	Forecast
1	100	96
2	102	100
3	98	101
4	108	97
5	100	105

 

2. What is the MAD for the forecast?

3. What is the mean squared error for the forecast?

4. What is the MAPE for the forecast?

5. Data with an upward trend will generally produce a moving average forecast that is generally ?