Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of

image text in transcribedimage text in transcribed

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: FORECAST ACTUAL WEEK DEMAND DEMAND 1 130 127 2 132 123 3 140 145 4 140 155 5 130 175 6 140 165 7 155 180 8 165 200 a. Compute the MAD of forecast errors. (Round your answers to 2 decimal places.) Week MAD 1 2 3 4 5 6 7 8 b. Using the RSFE, compute the tracking signal. (Round your answers to 2 decimal places. Negative values should be indicated by a minus sign.) Tracking Signal Week 1 2 3 4 5 6 7 8 c. Based on your answers to parts a and b, comment on Harlen's method of forecasting. The forecast should be considered poor. The forecast should be considered good.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Management

Authors: Andrew J. DuBrin

9th Edition

538478233, 2900538478235, 978-0538478236

More Books

Students also viewed these General Management questions

Question

Are summer stipends available?

Answered: 1 week ago