Question: Plot the tracking signals for each forecast and evaluate the movement of the signal. Assume that the analyst would flag forecasts with signals that are
Plot the tracking signals for each forecast and evaluate the movement of the signal. Assume that the analyst would flag forecasts with signals that are greater than or less than Which products should be reviewed immediately for potential forecasting issues? Discuss the tracking signals for each and what the implications are.
Here are the actual tabulated demands for an item for a ninemonth period January through September Your supervisor wants to test two forecasting methods to see which method w better over this period.
tableMONTHJanuaryACTUALFebruaryMarchAprilMayJuneJulyAugustSeptember
a Forecast April through September using a threemonth moving average.
b Use simple exponential smoothing with an alpha of to estimate April through September, using the average of January through March as the initial forecast for April.
c Use MAD to decide which method produced the better forecast over the sixmonth period.
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