日本語 English 中文

MRP glossary TOP > T > Tracking Signal

Tracking Signal

Tracking Signal

The Error in Forecast is usually normally distributed, which can be said to indicate the forecast is favorable. But it is not always normally distributed. Tracking Signal is used to determine the larger deviation (in both plus and minus) of Error in Forecast, and is calculated by the following formula:
Tracking Signal = Accumulated Forecast Errors / Mean Absolute Deviation
For example, when Errors (F1 and F2) in Forecast occur, each Mean Absolute Deviation (MAD) is 45. But, the Tracking Signal of F1 is 0.22, while that of F2 is 6, which shows the forecast of F1 is better and, as for that of F2, the actual data should be analyzed and its forecast model should be reconsidered.  

mrp_149-1.jpg

Related term: Error in Forecast

Reference:JIT Business Research Mr. Hirano Hiroyuki

Total Process Costing | T | Traveling Inspection