Homework SourseProvide the quantitative formulas for the following and a si
Provide the quantitative formulas for the following and a simple, solved exaple demonstrating how -to
Cumulative Sum of Forecast Error (CFE)
Mean Absolute Percentage Errors (MAPE)
Median Absolute Deviation (MAD)
Mean Squared Error (MSE)
Mean Forecast Error (MFE)
Tracking Signal (TS)
Solution
Et = Dt - Ft
Where, Et = Forecast error for period t
Dt = Actual Demand for period t
Ft = Forecast for period t
Mean Forecast Error (MFE) = (Et ) / n
Mean Squared Error (MSE) = (Et2 ) / n
Where, D = Actual Demand
n = Number of Period
For Example,
Sum of |Et |
| Week | Demand (D) | Forecast (F) | Et = Dt - Ft | Et2 | | Et | | ((|Et| / D )*100) | ||||
| 1 | 200 | 190 | 10 | 100 | 10 | 5 | ||||
| 2 | 220 | 198 | 22 | 484 | 22 | 10 | ||||
| 3 | 190 | 210 | -20 | 400 | 20 | 10.52632 | ||||
| 4 | 245 | 195 | 50 | 2500 | 50 | 20.40816 | ||||
| CFE (Sum of Et) = | 62 | Sum of Et2 | 3484 | Sum of |Et | | 102 | (MAPE) = Sum of ((|Et| / D )*100) | 45.93448 | |||
| MFE (CFE /n) | =15.5 | MSE = (Sum of Et2 / n) | 871 | MAD ( Sum of |Et | / n) | 25.5 | |||||
| Tracking Signal ( sum of Et / MAD) | 2.431373 |
