Respuesta :
Answer:
4.24
Explanation:
The computation of tracking signal is shown below:-
Month Actual Demand(dt) Forecast Demand (ft) error (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs = 102 ÷ 8
= 12.75
Tracking signal = 54 ÷ 12.75
= 4.24
The tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
What is a tracking signal?
A tracking signal is the ratio of the cumulative sum of the deviations between the estimated forecasts and the actual values of demand to the mean absolute deviations (MADs).
The tracking signal determines the larger deviation (in both plus and minus) of Error in Forecast.
The tracking signal can be calculated with this formula:
Tracking Signal = Accumulated Forecast Errors/Mean Absolute Deviation.
What is Mean Absolute Deviation?
The mean absolute deviation is the average of values or more specifically, the difference between the actual values and their average value. The mean absolute deviation (MAD) is used for calculating demand variability.
Data and Calculations:
Month Actual Forecast Error Difference
Demand(dt) Demand (ft) (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs (Mean Absolute Deviations) = 12.75 (102 ÷ 8)
Tracking signal = 4.24 (54 ÷ 12.75)
Thus, the tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
Learn more about the tracking signal at https://brainly.com/question/24099922
