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You discovered that the forecasting error falls beyond the acceptable ranges in the past three years. Make a reliable forecast for the demand on your product/service using at least 10 periods of your historical data to forecast the demand for the coming 5 periods. Then compute the MAD for these 5 periods . Period Actual (A) Forecast (F) (A-F) Error       1 107 110 -3       2 125 121 4       3 115 112 3       4 118 120 -2       5 108 109 1       6   118 120 -2       7 108 109 1       8 115 112 -3       9 140 137 -3       10 106 102 -4

You discovered that the forecasting error falls beyond the acceptable ranges in the past three years. Make a reliable forecast for the demand on your product/service using at least 10 periods of your historical data to forecast the demand for the coming 5 periods. Then compute the MAD for these 5 periods . Period Actual (A) Forecast (F) (A-F) Error       1 107 110 -3       2 125 121 4       3 115 112 3       4 118 120 -2       5 108 109 1       6   118 120 -2       7 108 109 1       8 115 112 -3       9 140 137 -3       10 106 102 -4

Practical Management Science
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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  • You discovered that the forecasting error falls beyond the acceptable ranges in the past three years. Make a reliable forecast for the demand on your product/service using at least 10 periods of your historical data to forecast the demand for the coming 5 periods. Then compute the MAD for these 5 periods
  • .

    Period

    Actual

    (A)

    Forecast

    (F)

    (A-F) Error

    		      

    1

    107

    110

    -3

    		      

    2

    125

    121

    4

    		      

    3

    115

    112

    3

    		      

    4

    118

    120

    -2

    		      

    5

    108

    109

    1

    		      

    6

     

    		 118 120 -2      
    7 108 109 1      
    8 115 112 -3      
    9 140 137 -3      
    10 106 102 -4      
                 
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