Question
Your company produces and distributes home tool sets to Lowe's, Home Depot, Ace Hardware, and over 500 privately owned hardware stores across the United States.
Your company produces and distributes home tool sets to Lowe's, Home Depot, Ace Hardware, and over 500 privately owned hardware stores across the United States. The unit sales levels and forecasts for the last two previous years (by month) are detailed in the table below. You have been asked to calculate the Forecast error and Forecast Percentage error for the entire line of Tool belts for each year, and for each two-year period. Start your analysis by completing the table below, then use the spaces below (in light green) to calculate the error and percent error for each question asked. These equations and an example are covered in your textbook on pages 107 - 111. Finally, in the last space, provide a written summary of your findings regarding the sales trends and the forecasting efficacy by year, by product, and overall. | |||||||||||||||||||||||
a. | Complete the following Table | ||||||||||||||||||||||
Year | Period | Actual Unit Sales (X10) | Forecasted Unit Sales (X10) | Forecast Error At-Ft (X10) | Percentage Error | ||||||||||||||||||
1 | 1 | 650 | 554 | 0.0% | 10 points total | ||||||||||||||||||
2 | 985 | 768 | 0.0% | 5 points - correctly completed Table | |||||||||||||||||||
3 | 596 | 996 | 0.0% | 5 points - part e Analysis | |||||||||||||||||||
4 | 593 | 802 | 0.0% | ||||||||||||||||||||
5 | 326 | 648 | 0.0% | ||||||||||||||||||||
6 | 523 | 952 | 0.0% | ||||||||||||||||||||
7 | 847 | 897 | 0.0% | ||||||||||||||||||||
8 | 891 | 868 | 0.0% | ||||||||||||||||||||
9 | 480 | 898 | 0.0% | ||||||||||||||||||||
10 | 470 | 547 | 0.0% | ||||||||||||||||||||
11 | 733 | 502 | 0.0% | ||||||||||||||||||||
12 | 573 | 627 | 0.0% | ||||||||||||||||||||
Year 1 | Sum | ||||||||||||||||||||||
Year 1 | Avg/mo | ||||||||||||||||||||||
2 | 1 | 729 | 649 | 0.0% | |||||||||||||||||||
2 | 908 | 566 | 0.0% | ||||||||||||||||||||
3 | 699 | 821 | 0.0% | ||||||||||||||||||||
4 | 854 | 877 | 0.0% | ||||||||||||||||||||
5 | 829 | 924 | 0.0% | ||||||||||||||||||||
6 | 580 | 543 | 0.0% | ||||||||||||||||||||
7 | 543 | 889 | 0.0% | ||||||||||||||||||||
8 | 636 | 652 | 0.0% | ||||||||||||||||||||
9 | 716 | 732 | 0.0% | ||||||||||||||||||||
10 | 997 | 511 | 0.0% | ||||||||||||||||||||
11 | 480 | 752 | 0.0% | ||||||||||||||||||||
12 | 478 | 839 | 0.0% | ||||||||||||||||||||
Year 2 | Sum | ||||||||||||||||||||||
Year 2 | Avg/mo | ||||||||||||||||||||||
Year 1 & 2 | Sum | ||||||||||||||||||||||
Mean Error for 2 year Period | |||||||||||||||||||||||
b. | What Conclusions can you draw regarding the forecasting accuracy? | ||||||||||||||||||||||
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