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National Furniture Company (NFC) is the manufacturer of home and office furniture. Currently they are in financial crisis and after an inquiry it was found that the problem occurred due to inaccurate demand forecast. The sales manager, who is responsible for the demand forecast was also contacted for explanation. At the other hand sometimes organizations have to spend huge money in holding the inventory which ultimately brings losses to the company.
As a Production/Operations Manager, how will you guide the Sales Manager to monitor the forecasting errors and to improve the demand forecast?
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