Managerial Implications

1.) What does the MAD data say about this company?

2.) How can my findings help managers or people improve the operation process and performance?

Model 2: Mean Absolute Deviation (MAD) Year Dt - Ft 2014 2015 2016 2017 2018 2019 2020 Actual Sales (Dt) 476,294 485,651 482,130 485,873 500,343 514,405 523,964 Forecast (Ft) 445,188 459,675 473.861 479,287 483,435 491,816 500,929 31,106 25,976 8,269 6,586 16,908 22.589 23,035 [Dt - Ft Absolute Value 31,106 25,976 8,269 6,586 16,908 22,589 23.035 Formula: where t - the period number MAD-SD-F n D. = demand in period t Fi = the forecast for period t n = the total number of periods in years) MAD calculation breakdown: Step 1: n=7 Step 2: MAD = (31.106 + 25,976 + 8,269 + 6,586 + 16,908 + 22,589 +23.035/7 = 19,210 7 = 2,744.28 or 2.744