Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Check my work Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the
Check my work Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the weekly forecast for the same month this year. This technique was used to forecast eight weeks for this year, which are shown below along with the actual demand that occurred. The following eight weeks show the forecast (based on last year) and the demand that actually occurred: WEEK WN FORECAST ACTUAL DEMAND DEMAND 130 127 130 123 146 149 144 146 179 156 169 150 184 145 205 159 00 O S Prev 7 of 8 !!! Next > a. Compute the MAD of forecast errors. (Round your answers to 2 decimal places.) Week MAD Check my work b. Using the RSFE, compute the tracking signal. (Round your answers to 2 decimal places. Negative values should be indicated by a minus sign.) Week Tracking Signal 2 4 5 6 7 8 ces c. Based on your answers to parts a and b, comment on Harlen's method of forecasting. O The forecast should be considered poor. O The forecast should be considered good.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started