Material requirements planning (MRP) requires the bill of materials (BOM) file to plan requirements.
Marketing is the functional area that decides the product to be supplied and the customers to be served.
Extrinsic forecasting uses external data and factors to predict future demand, such as economic indicators, market trends, and competitor analysis. Therefore, there is no specific calculation that is a major component of extrinsic forecasting, as it depends on the specific data and factors being analyzed.
Order processing includes processing a customer request and making material available for production or shipping.
To calculate the mean absolute deviation, we need to first find the absolute deviation of each demand value from the forecast, then find the average of those deviations.
The absolute deviations from the forecast are:
|195-200| = 5
|210-200| = 10
|205-200| = 5
|190-200| = 10
|220-200| = 20
|225-200| = 25
The sum of these absolute deviations is 5 + 10 + 5 + 10 + 20 + 25 = 75.
The mean absolute deviation is calculated by dividing this sum by the number of data points, which is 6.
Mean absolute deviation = 75/6 = 12.5.
Therefore, the answer is 12.5.
Independent demand refers to the demand for finished products or end items that are directly demanded by customers. These demands are not influenced by the demand for other items, and thus, they need to be forecasted.
An order winner is a competitive characteristic that a company must exhibit to win sales and gain a competitive advantage in the market. It could be a feature or attribute of a product or service that makes it more desirable to customers than the offerings of competitors.
