Use This Equation to Forecast the Demand for This Product

question 11

Multiple Choice

Use this equation to forecast the demand for this product and calculate the MAD.

• A)MAD = 1.333
• B)MAD = 1.6
• C)MAD = 2.0
• D)MAD = 2.333
• E)MAD = 2.5

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and considered a part of its cost.

Bandages

Strips of cloth or other material used to wrap or cover wounds, providing protection and support.

Receiving Report

A document that records the details of materials or goods received by a company, ensuring the quantities and descriptions match the order.

Materials Ordered

The process of requesting and purchasing raw materials or supplies required for production or operations.