Sales of tablet computers at Ted Glickman\'s electronics store in Washington, D.

Question

Sales of tablet computers at Ted Glickman's electronics store in Washington, D.C., over the past 10 weeks are shown in the table below: Week Demand 21 23 29 37 26 30 35 24 24 28 1 2 3 4 5 6 7 8 9 10 a) The forecast for weeks 2 through 10 using exponential smoothing with a·0.60 and a week 1 intial forecast of 21.0 are rund yourresponses to two dear al aces Week Demand 21 23 29 37 26 30 35 24 24 28 Forecast 21.0 21 22.2 26.28 32.71 28.68 29.47 32.79 27.52 25.41 8 9 10 b) For the forecast developed using exponential smoothing 0.00 and initial forecast 21.0), the MAD·4.80 sales round your response to two decimal places). c) For the forecast developed using exponential smoothing ·060 and initial forecast 21 0 the tracking signal- (ound yourresponse to two decimal places

Explanation / Answer

C) To calculate the tracking signal we have to first calculate the forecast errors for all the periods

Forecast error = actual demand - forecasted demand

So using the above formula the forecast errors for all the periods are

Tracking signal = Sum of forecast errors / MAD

= [0+2+6.8+10.72+(-6.71)+1.32+5.53+(-8.79)+(-3.52)+2.59]/4.80

= [28.96+(-19.02)] /4.80

= (28.96-19.02)/4.80

= 9.94/4.80

= 2.07

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