Calculate the tracking signal, Operation Management

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Sales of music stands at Johnny Ho music store in Columbus, Ohio, over the past 10 weeks are shown in the table below.

a) Forecast demand for each week, including week 10, using exponential smoothing with α = .5 (initial forecast = 20).

Week Demand Week Demand
1 20 6 29
2 21 7 36
3 28 8 22
4 37 9 25
5 25 10 28

b) Compute the MAD.

c) Compute the tracking signal


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