Forecasting techniques are very valuable in business planning, but without effectively examining the forecasting error, a business could make very flawed decisions. It is critical that we always...

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Forecasting techniques are very valuable in business planning, but without effectively examining the forecasting error, a business could make very flawed decisions. It is critical that we always evaluate the level of error and use this information to inform decisions about production, stocking, etc. For each of the error measures below, describe their strengths and weaknesses (Please include references). Finally, select the method you believe would be most useful.



  • forecast error

  • CFE

  • mean bias

  • MAD

  • MAPE

Answered Same DayNov 19, 2022

Answer To: Forecasting techniques are very valuable in business planning, but without effectively examining the...

Robert answered on Nov 19 2022
41 Votes
Forecast errors
1. Strengths are risk mitigation and efficient planning in advance to reduce costs

2. Weakness are that shows highervariance if data is insufficient or lacks quality
CFE
1. Strengths are higher scalability and reliability
2. Weakness are restrictions to higher variety and...
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