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There are two major sources of variability discussed in demand forecasting, forecasting error variance and demand variance. Which is larger, and why? a) Demand variability,

There are two major sources of variability discussed in demand forecasting, forecasting error variance and demand variance. Which is larger, and why? a) Demand variability, no control over the input process. b) Forecasting error variability; the exponential smoothing constant is a random variable. c) Demand variability; may require differencing to stabilize. d) Forecasting error variability; based on limited portion of the demand history

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