Question

1. Calculate mean absolute deviation (MAD), mean absolute percent error (MAPE), and tracking signal (TS) based on below information. MAD Period Error Absolute Error 1 lor 2 3 4 5 Demand 155 145 160 151 143 Forecast 130 155 145 160 151 MAD= MAPE Period 1 2 3 4 5 Demand 155 145 160 151 143 Forecast 130 155 145 160 151 Ave Demand MAPE=

Answer 1

Answer

Period	Demand	Forecast	Error	Absolute error	Average demand
1	155	130	25	25	=(25/155)*100 = 16.13
2	145	155	-10	10	=6.89
3	160	145	15	15	=9.38
4	151	160	-9	9	=5.96
5	143	151	-8	8	=5.59
Total			13	67	43.95

MAD = $\frac{\sum\left | absolute error \right |}{n}$ =67/5 = 13.4

Average demand = $\frac{\sum \left | absolute error \right |}{actual}$ =0.4395

MAPE = = (0.4395*100)/5

absoluteerror 100 actual n

=8.79