Reference no: EM133077644

Question - You are given the following budgeted and actual data for the Grey Company for each of the months January through June of the current year.

In December of the prior year, sales were forecasted as follows: January, 106 units; February, 101 units; March, 108 units; April, 113 units; May, 120 units; June, 128 units. In January of the current year, sales for the months February through June were reforecasted as follows: February, 96 units; March, 108 units; April, 108 units; May, 110 units; June, 123 units. In February of the current year, sales for the months March through June were reforecasted as follows: March, 103 units; April, 108 units; May, 105 units; June, 123 units. In March of the current year, sales for the months April through June were reforecasted as follows: April, 108 units; May, 100 units; June, 113 units. In April of the current year, sales for the months May and June were reforecasted as follows: May, 90 units; June, 108 units. In May of the current year, sales for June were reforecasted as 108 units.

Actual sales for the six-month period, January through June, were as follows: January, 108 units; February, 96 units; March, 111 units; April, 104 units; May, 117 units; June, 132 units.

Required -

1. Prepare a schedule of forecasted sales, on a rolling basis, for the months January through June, inclusive.

2. For each of the months March through June, determine the 3-month forecast error rate, defined as 1 minus the absolute percentage error. For example, the forecast error rate for March's sales is found by dividing the absolute value of the forecast error for this month by the actual sales volume for the month. The forecast error for any month (e.g., March) is defined as the difference between the actual sales volume for the month and the sales volume for that month forecasted 3 months earlier (e.g., December). Also, indicate for each month whether the actual sales volume was above or below the forecasted volume generated three months earlier.