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 in the following tables along with the actual demand that occurred. WEEK FORECAST DEMAND ACTUAL DEMAND 1 140 137 2 140 133 3 140 150 4 140 160 5 140 180 6 150 170 7 150 185 8 150 205 Compute the MAD of forecast errors. Note: Round your answers to 2 decimal places. Using the RSFE, compute the tracking signal. Note: Negative values should be indicated by a minus sign. Round your answer to 2 decimal places. Based on your answers to parts a and b, comment on Harlen’s method of forecasting. multiple choice The forecast should be considered poor. The forecast should be considered good.
Harlen Industries has a simple
| WEEK | FORECAST DEMAND | ACTUAL DEMAND |
|---|---|---|
| 1 | 140 | 137 |
| 2 | 140 | 133 |
| 3 | 140 | 150 |
| 4 | 140 | 160 |
| 5 | 140 | 180 |
| 6 | 150 | 170 |
| 7 | 150 | 185 |
| 8 | 150 | 205 |
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Compute the MAD of forecast errors.
Note: Round your answers to 2 decimal places.
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Using the RSFE, compute the tracking signal.
Note: Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.
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Based on your answers to parts a and b, comment on Harlen’s method of forecasting.
multiple choice
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The forecast should be considered poor.
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The forecast should be considered good.
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