The Forecast Is 100 Units a Week

question 7

Essay

The forecast is 100 units a week. The actual demand for the past six weeks has been 105, 110, 103, 105, 107, and 115. If MAD is 7.5, calculate the sum of the forecast error and the tracking signal.

Comprehend the key drivers of supply chain performance, including inventory, transportation, and information.

Analyze the financial impacts of supply chain decisions on metrics such as the cash-to-case cycle, return on equity (ROE), and accounts receivable turnover.

Recognize the significance of strategic decisions in procurement, sourcing, and supply chain structure.

Identify the different types of inventory and their purposes within the supply chain.

---

Definitions:

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.

Other Income

Refers to revenue generated from activities that are not part of a company's core business operations.