Answered: (i) MAD (ii) MAPD (iii)…

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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Question

(a) Table 3 gives the data for actual demand (D) and forecasted demand (F) of a product for the past 10 months. Using the data find:

(i) MAD

(ii) MAPD

(iii) RSFE

(iv) Tracking Signal Values

(v) Plot the values on a control chart using Tracking Signal and comment on the acceptability of the forecasts.

(b) Table 4 gives data for attendance at Orlando’s newest Disney like attraction, Lego world. Using seasonality index forecasting method compute the forecasted demand for all seasons of Year 4.

Table 3
Actual
Forecasted
Demand Demand
Month (D)
(F)
1
98
100
102
110
3
167
124
4
128
156
5
159
146
6
167
174
7
172
166
8
188
182
193
200
10
174
180
2.

Table 4
Quarter
Guests
Winter Year 1
73
Spring Year 1
104
Summer Year 1
168
Fall Year 1
74
Winter Year 2
65
Spring Year 2
82
Summer Year 2
124
Fall Year 2
52
Winter Year 3
89
Spring Year 3
146
Summer Year 3
205
Fall Year 3
98

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