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Your company designs and manufactures apparel for the North American market. Clothing and apparel is a style good, with a relatively limited life.
Items not sold at the end of the season are usually sold through off-season outlet and discount retailers. Items not sold through discounting and off-season merchants are often given to charity or sold abroad.
a. What forecasts do you need in this business to be successful?
b. Are these short-range or long-range forecasts?
c. What data do you need to be able to generate these forecasts?
d. What are the implications of forecast errors?
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