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Problem 3-19 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

Problem 3-19 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 2 3 4 5 6 7 8 FORECAST ACTUAL DEMAND DEMAND 150 140 143 145 155 145 165 155 185 165 175 145 190 144 210 a. Compute the MAD of forecast errors. (Round your answers to 2 decimal places.) MAD Week 1
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 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.

Apr 13 2021 View more View Less

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