Practical Management Science
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ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = 0.9, SR2 = 0.95, SR3 = 1.05, and SR4 = 1.1. The trend equation is: Ft = 6 + 4t. Over the past nine quarters, demand has been as follows:
| Period, t: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| Demand: | 11 | 15 | 17 | 22 | 28 | 32 | 36 | 39 | 43 |
Compute the MAD and tracking signal for each period. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.)
| Period, t | Demand | MAD | Tracking signal |
| 1 | 11 | ||
| 2 | 15 | ||
| 3 | 17 | ||
| 4 | 22 | ||
| 5 | 28 | ||
| 6 | 32 | ||
| 7 | 36 | ||
| 8 | 39 | ||
| 9 | 43 | ||
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