Consider the following data. We want to monitor the forecasts.
Period..............Demand............Forecasts ......
1...................265....................-- ......
2...................261....................265 ......
3...................286....................261 ......
4...................297....................286 ......
5...................318....................297......
Calculate the UCL and LCL for the appropriate control chart? Calculate the cumulative error, MAD, and tracking signals.
Error of period 2:
Error of period 3:
Error of period 4:
Error of period 5:
Overal MSE:
UCL to monitor the magnitude of the errors:
LCL to monitor the magnitude of the errors:
Are the errors in control? Yes No
Cumulative error up to period 2:
Cumulative error up to period 3:
Cumulative error up to period 4:
Cumulative error up to period 5:
MAD up to period 2:
MAD up to period 3:
MAD up to period 4:
MAD up to period 5:
Tracking signal of period 2:
Tracking signal of period 3:
Tracking signal of period 4:
Tracking signal of period 5:
Based on your tracking signals, are the forecasts biased? Yes No