Question
Harlan Industries has a simple forecasting model. Take the actual demand for the same month last year and divide that by the number of fractional
Harlan 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 month this year. This technique was used to forecast for 4 weeks for this year and2 is shown below along with the actual demand.
Week | Forecast | Actual |
1 | 140 | 137 |
2 | 140 | 133 |
3 | 140 | 150 |
4 | 140 | 160 |
Assess and explain the Harlan's forecasting model using all relevant FE metrics. Next, state the conclusions you can draw from the assessment? (Hint: Use all appropriate FE metrics to make the assessment). (5 points)
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