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Hoops Industries has a simple forecasting model. The following table shows the forecast for eight weeks and the actual demand.
Week Forecast Demand Actual Demand
1 140 137
2 140 133
3 140 150
4 140 160
5 140 180
6 150 170
7 150 185
8 150 205
Calculate the three-week moving average forecast for Week 9. Compute the MAD and MAPE of forecast errors. Using the running sum of the forecast errors (RSFE), compute the tracking signal.
Based on your answers to the above, comment on Hoops’ method of forecasting.
Submit your answers in a Microsoft Excel sheet.
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