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.WEEKFORECAST DEMANDACTUAL DEMAND11401372140133314015041401605140180615017071501858150205Compute 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 choiceThe forecast should be considered poor.The forecast should be considered good.

WeekActual Demand Forecast Demand 11371402133140315014041601405180140617015071851508205150

Answered: Harlen Industries has a simple…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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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.