Discuss the below problem:
Q1: Some manufacturing companies select material oriented locations; they locate near their major sources of raw material, because their major raw materials are concentrated in one area.
Q2: The following is a series of weekly demand data covering 8 weeks that La-Z-Boy has collected on its new deluxe recliner and has forecasted the corresponding weeks, made by forecast model 1 which the company is testing.
|
Week
|
Demand
|
Forecast
|
|
1
|
6
|
5
|
|
2
|
5
|
7
|
|
3
|
10
|
10
|
|
4
|
13
|
10
|
|
5
|
11
|
12
|
|
6
|
11
|
12
|
|
7
|
10
|
14
|
|
8
|
8
|
14
|
John has computed a Mean Absolute Percentage of Error using this forecasting model and Forecasting Model F. Forecasting Model F has a MAPE of 17.35%. What forecasting model should La-Z-Boy use to get a more accurate forecast?
This model as it has less percentage of errors than Forecasting Model F.
Forecasting Model F_r as it has a lower percentage of errors than this model.