The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines: Month Actual Demand Forecast Demand May 100 102 June 80 100 July 110 97 August 115 104 September 105 104 October 110 102 November 125 108 December 125 111 Part 2 For the given forecast, the tracking signal = enter your response here MADs (round your response to two decimal places).

The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines: Month Actual Demand Forecast Demand May 100 102 June 80 100 July 110 97 August 115 104 September 105 104 October 110 102 November 125 108 December 125 111 Part 2 For the given forecast, the tracking signal = enter your response here MADs (round your response to two decimal places).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Part 2

For the given forecast, the tracking signal =

enter your response here

MADs (round your response to two decimal places).

### Monthly Actual and Forecast Demand Levels for Des Moines

The following table provides the monthly actual and forecast demand levels for the period from May through December. The data pertains to the units of a product manufactured by the D. Bishop Company in Des Moines.

| **Month** | **Actual Demand** | **Forecast Demand** |
|---------------|-------------------|---------------------|
| **May** | 100 | 102 |
| **June** | 80 | 100 |
| **July** | 110 | 97 |
| **August** | 115 | 104 |
| **September** | 105 | 104 |
| **October** | 110 | 102 |
| **November** | 125 | 108 |
| **December** | 125 | 111 |

For the given forecast, the tracking signal is calculated in terms of the Mean Absolute Deviation (MAD). Please ensure that your response is rounded to two decimal places. The tracking signal provides insights into the accuracy of the forecast by comparing the cumulative errors to the MAD.

### Calculation Instructions:
1. **Determine the Error for Each Month**: Compute the difference between the actual demand and the forecast demand for each month.
2. **Calculate MAD**: Calculate the Mean Absolute Deviation by averaging the absolute values of the errors.
3. **Tracking Signal**: The tracking signal formula is \(\text{Tracking Signal} = \frac{\text{Cumulative Forecast Error}}{\text{MAD}}\).

Refer to the table above for the actual and forecast demand values to carry out these calculations.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
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