Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Customer Service is very important to Jane and John's Goodie Baskets. In fact the target for customer service level is 99%. The following are the

Customer Service is very important to Jane and John's Goodie Baskets. In fact the target for customer service level is 99%. The following are the sales results to the forecast by month for last year.

Period Forecast Actual
Sept 6000 12000
Oct 6000 4000
Nov 6000 6000
Dec 6000 15000
Jan 6000 10000
Feb 6000 4000
Mar 6000 6000
Apr 6000 5000
May 6000 3000
Jun 6000 2000
Jul 6000 1000
Aug 6000 4000

b) What is standard deviation? c) What is the tracking signal per month? d) The company uses a trigger of +/- 4 , which period(s) should the forecast be looked at? e) Reviewing the actual versus forecast for last year, do you agree with Jane and John's Goodie Baskets' forecasting technique? Give your recommendations to improve the forecast accuracy. (I am looking for a qualitative recommendation; it does not need to be supported by a revised quantitative forecast.) f) Is the error random or bias? g) For Jane and John's Goodie Baskets to maintain their customer service goal above, how much safety stock should they maintain? What are the issues with carrying this level of safety stock given the product they are building?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Small Business Management Launching & Growing Entrepreneurial Ventures

Authors: Justin Longenecker, William Petty, Leslie Palich, Frank Hoy

17th edition

9781285972565, 1133947751, 1285972562, 978-1133947752

More Books

Students also viewed these General Management questions

Question

What is a manufacturing system?

Answered: 1 week ago

Question

Cite the characteristics of satisfying intimate relationships.

Answered: 1 week ago

Question

Define intimacy and explain how to develop it in a relationship.

Answered: 1 week ago

Question

According to the text, what makes a person successful?

Answered: 1 week ago