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Q. Altavox is considering a new option for distributing the model VC202 where, instead of using five vendors, only a single vendor would be used. Evaluate this option by analyzing explain how accurate the forecast would be, based on the demand aggregated across all regions. Use the model that you think is best, from your analysis of parts 1 and 2. Use a new criterion that is computed by taking the MAD and dividing by the average demand. This criterion is called the mean absolute percent error (MAPE) and gauges the error of a forecast as a percent of the average demand. Illustrate what are the advantages and disadvantages of aggregating demand from a forecasting view? Are there other things that should be considered when going from multiple distributors to a single distributor?
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