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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).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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).

 

### 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.
Transcribed Image Text:### 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.
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