INTE Exam Dumps : Supply Management Integration

The absolute value of the forecast error is calculated as the average of the absolute differences between forecasted and actual demand. Calculating each period: |30-31| + |25-31| + |28-26| + |25-20| = 1 + 6 + 2 + 5 = 14. Therefore, the absolute value of the forecast error is 14. Reference: Demand forecasting and error measurement techniques.

Capital expenditure policies primarily relate to fixed assets, as they involve investments in long-term assets that are capitalized and depreciated over time. Reference: Horngren, C. T., Datar, S. M., & Rajan, M. V. (2015). Cost Accounting: A Managerial Emphasis.

Parts that were used for maintenance of equipment sold in the previous year but cannot be used on current equipment are best described as obsolete. Obsolete inventory refers to items that are no longer usable or saleable due to advancements in technology or changes in market demand. These parts should be identified and removed from active inventory to free up space and reduce carrying costs. References:

•Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.

•Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.