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Nathan's Widgets manufactures and distributes Fidget Cubes for $15 per cube to multiple retailers including Wamazmart. Their current forecast methodology has been Arithmetic Mean, but
Nathan's Widgets manufactures and distributes Fidget Cubes for $15 per cube to multiple retailers including Wamazmart. Their current forecast methodology has been Arithmetic Mean, but they have achieved poor accuracy, poor production plans, and high levels of stockouts and/or overstocks. They have contracted with your Consulting Firm to help them with the following questions: A) Should they move to a moving average with n=4 OR a weighted moving average with n=3, a1=0.5, a2=0.3, a3=0.2 OR stay with arithmetic mean? B) Based on your recommendation, what should they forecast for the year 2024? C) Based on the forecast for 2024, should they use a chase or level production planning strategy for the assumptions shown in the tab labeled CUT
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