The ACME Corporation is a manufacturer and seller of electronic testing and switching equipment and sells direct to businesses and on the internet. Their supply chain is depicted below, at a high level. Inbound Sub-Assembl Supplier Final Assembly Testing Pack & Ship DC Acme has three major product lines that are run as separate businesses, with several supply chain functions is shared services. The product lines are the P60, the N20, and the M40. • P60, network storage product (major markets - computer equipment) • N20 electronic range finder (major markets - automotive, marine) • N20 component - C100 • M40, switching product (major markets - network industry) o M40 component - C400 Acme Manufacturing's head of Demand-Supply Management is not pleased with his product forecast results, which are consistently wrong on the higher side. This has resulted in excess inventory on a consistent basis. He has asked his managers to recommend a course of action that will improve his forecast accuracy. Which is the following would be the best recommendation? O Increasing the time horizon of his forecasts from 4 months to 12 months out Forecasting at the aggregated product line level rather than the detailed SKU level Take the current forecasts and reduce them by 10% every quarter O Getting his extended team together once a quarter and collating the best forecast guesses of each one
