Question: Problem 6: The table below shows the Actual demand and forecast for 12 periods of data. Calculate the Cumulative Forecast Error and Tracking Signal values

Problem 6: The table below shows the Actual

Problem 6: The table below shows the Actual demand and forecast for 12 periods of data. Calculate the Cumulative Forecast Error and Tracking Signal values for this data. A) Does the forecast show bias? If so what type of bias? Explain your position (i.e. why do you think there is or is not bias). B) Calculate the Tracking signal values for the 12 forecasts. Do you recommend that they continue to use this forecasting method? Explain your position. Actual Demand Month Forecast 149 172 175 215 170 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 9 September 10 October 11 November 12 December 170 170 163 150 140 130 125 144 150 147 125 132 141 140 122 118 145 150 112

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