The manager of a travel agency has been using a seasonally
adjusted forecast to predict demand for packaged tours. The actual
and predicted values are as follows:
Period | Demand | Predicted | |||||||
1 | 135 | 113 | |||||||
2 | 195 | 200 | |||||||
3 | 155 | 150 | |||||||
4 | 90 | 102 | |||||||
5 | 85 | 80 | |||||||
6 | 130 | 135 | |||||||
7 | 125 | 128 | |||||||
8 | 130 | 124 | |||||||
9 | 95 | 109 | |||||||
10 | 150 | 150 | |||||||
11 | 105 | 94 | |||||||
12 | 90 | 80 | |||||||
13 | 125 | 140 | |||||||
14 | 135 | 128 | |||||||
a. Compute MAD for the fifth period, then
update it period by period using exponential smoothing with ? =
.05. (Round your intermediate calculations and final
answers to 3 decimal places.)
t Period |
A Demand |
MADt | |||||
1 | 135 | ||||||
2 | 195 | ||||||
3 | 155 | ||||||
4 | 90 | ||||||
5 | 85 | ||||||
6 | 130 | ||||||
7 | 125 | ||||||
8 | 130 | ||||||
9 | 95 | ||||||
10 | 150 | ||||||
11 | 105 | ||||||
12 | 90 | ||||||
13 | 125 | ||||||
14 | 135 | ||||||
b. Compute a tracking signal for periods 5
through 14 using the initial and updated MADs. (Negative
values should be indicated by a minus sign. Round your intermediate
calculations and final answers to 3 decimal
places.)
t Period |
A Demand |
Tracking Signal |
|||||
1 | 135 | ||||||
2 | 195 | ||||||
3 | 155 | ||||||
4 | 90 | ||||||
5 | 85 | ||||||
6 | 130 | ||||||
7 | 125 | ||||||
8 | 130 | ||||||
9 | 95 | ||||||
10 | 150 | ||||||
11 | 105 | ||||||
12 | 90 | ||||||
13 | 125 | ||||||
14 | 135 | ||||||
(a) MADs and (b) Tracking Signals are calculated as below
Formula:
D7 =D6+(B6-D6)*0.05 copy to D7:D15
E6 =ABS(B6-C6) copy to E7:E15
F6 =B6-C6 copy to F7:F15
G6 =F6+G5 copy to G6:G15
H6 =G6/AVERAGE($E$6:E6) copy to H6:H15
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