Question: After using your forecasting model for six months, you decide to test it using MAD and a tracking signal. Here are the forecast and actual

After using your forecasting model for sixAfter using your forecasting model for sixAfter using your forecasting model for six

After using your forecasting model for six months, you decide to test it using MAD and a tracking signal. Here are the forecast and actual demands for the six-month period: PERIOD May June July August September October FORECAST 455 505 555 595 630 720 ACTUAL 470 555 370 455 670 615 a. Find the tracking signal. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) Period Tracking Signal May June July August September October Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period. MONTH January February March April May June July August September ACTUAL 112 132 148 170 164 176 136 138 142 a. Forecast April through September using a three-month moving average. (Round your answers to 2 decimal places.) Month Three-Month Moving Average April May June July August September b. Use simple exponential smoothing with an alpha of 0.30 to estimate April through September, using the average of January through March as the initial forecast for April. (Round your answers to 2 decimal places.) Month Exponential Smoothing April May June July August September C-1. Calculate MAD for each method. (Round your answers to 2 decimal places.) MAD Three-month moving average Exponential smoothing c-2. Use MAD to decide which method produced the better forecast over the six-month period. Exponential smoothing. Three-month moving average

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!