Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 4, Problem 11P
Summary Introduction
Interpretation:Finding out the term in division when made with
Concept Introduction:Forecasting refers to future event anticipation process and forecast can be done by numerous methods depending upon past performance of the entity which is in similar operation. There by forecast is result of calculation made with available information of the operation.
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Harlen Industries Limited has a simple forecasting model whose forecast demand has been plotted against actual demand for an 8 months duration. The firm uses an average weekly demand which is shown below:
WEEK
FORECAST DEMAND
ACTUAL DEMAND
1
140
135
2
150
160
3
165
155
4
170
175
5
155
180
6
160
150
7
170
145
8
135
140
Compute the Mean Absolute Deviation (MAD) of the Harlen industries limited?
Calculate the Mean Square Error (MSE) for Harlen industries Limited?
Calculate the Cumulative Forecast Error (CFE) of Harlen industries limited?
After using your forecasting model for six months, you decide to test it using a tracking signal. Here are the forecast and actual demands for the six-month period:
PERIOD
FORECAST
ACTUAL
May
450
500
June
500
550
July
550
400
August
600
500
September
650
675
October
700
600
Find the tracking signal of each month
The following table shows predicted product demand using your particular forecasting method along with the actual demand that occurred:
FORECAST
ACTUAL
1,515
1,585
1,415
1,515
1,715
1,615
1,755
1,680
1,805
1,730
Compute the tracking signal of each period using the mean absolute deviation and running sum of forecast errors.
Chapter 4 Solutions
Practical Operations Management
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6P
Ch. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 1.1QCh. 4 - Prob. 1.2QCh. 4 - Prob. 1.3QCh. 4 - Prob. 1.4QCh. 4 - Prob. 2.1QCh. 4 - Prob. 2.2QCh. 4 - Prob. 2.3QCh. 4 - Prob. 2.4QCh. 4 - Prob. 3.1QCh. 4 - Prob. 3.2QCh. 4 - Prob. 3.3Q
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