Question 1

When a trend is present, exponential smoothing always will be below or above the actual demand.

Accepted Answer

A) True 
 B)False

Question 2

One of the basic time series patterns is trend.

Accepted Answer

A) True 
 B)False

Question 3

A trend in a time series is a systematic increase or decrease in the average of the series over time.

Accepted Answer

A) True 
 B)False

Question 4

Define and discuss market research as it applies to forecasting.

Accepted Answer

Market research is a systematic approach

Question 5

A(n) _________  is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

Accepted Answer

The answer of A(n) _________  is a measure that...

Question 6

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Accepted Answer

Adjust quantitative forecasts when they

Question 7

Executive opinion is a forecasting method in which the opinion, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Accepted Answer

A) True 
 B)False

Question 8

Describe the judgment method technique of forecasting.

Accepted Answer

A qualitative method that tran

Question 9

The exponential smoothing method is a sophisticated weighted moving average method.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is an example of causal forecasting technique?

Accepted Answer

A)  weighted moving average 
B)  exponential smoothing 
C)  linear regression 
D)  Delphi method 
A)  weighted moving average 
B)  exponential smoothing 
C)  linear regression 
D)  Delphi method

Question 11

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series. List and briefly describe the five basic patterns of most demand time series.

Accepted Answer

1. horizontal: fluctuation of data aroun

Question 12

A weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier methods is called

Accepted Answer

A)  seasonally adjusted smoothing. 
B)  exponential smoothing. 
C)  cumulative tracking error. 
D)  multiplicative seasonal method. 
A)  seasonally adjusted smoothing. 
B)  exponential smoothing. 
C)  cumulative tracking error. 
D)  multiplicative seasonal method.

Question 13

_________ forecasting is a method that selects the best forecast from a group of forecasts generated by simple techniques.

Accepted Answer

The answer of  _________ forecasting is a method that...

Question 14

Table 11.7.
$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$
-Use the information in Table 11.7. The forecast for month 3 is

Accepted Answer

A)  less than or equal to 140 units. 
B)  greater than 140 but less than or equal to 160 units. 
C)  greater than 160 but less than or equal to 180 units. 
D)  greater than 180 units. 
A)  less than or equal to 140 units. 
B)  greater than 140 but less than or equal to 160 units. 
C)  greater than 160 but less than or equal to 180 units. 
D)  greater than 180 units.

Question 15

The advantage of the simple moving average forecast is that it allows you to emphasize recent demand over earlier demand.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following statements about forecasting is TRUE?

Accepted Answer

A)  Judgment methods are designed particularly for situations when historical data are lacking. 
B)  Casual methods are used when historical data are available and the relationship between the factor to be forecast and other external and internal factors cannot be identified. 
C)  Focused forecasting is a technique that focuses on one particular component of demand and develops a forecast from it. 
D)  The five basic patterns of demand are the horizontal, trend, seasonal, cyclical, and the subjective judgment of forecasters. 
A)  Judgment methods are designed particularly for situations when historical data are lacking. 
B)  Casual methods are used when historical data are available and the relationship between the factor to be forecast and other external and internal factors cannot be identified. 
C)  Focused forecasting is a technique that focuses on one particular component of demand and develops a forecast from it. 
D)  The five basic patterns of demand are the horizontal, trend, seasonal, cyclical, and the subjective judgment of forecasters.

Question 17

Table 11.6.

-Use the information in Table 11.6. Use the exponential smoothing method with ? = 0.5 to forecast the sales for year 5.

Accepted Answer

A)  less than or equal to 3 
B)  greater than 3 but less than or equal to 4 
C)  greater than 4 but less than or equal to 5 
D)  greater than 5 
A)  less than or equal to 3 
B)  greater than 3 but less than or equal to 4 
C)  greater than 4 but less than or equal to 5 
D)  greater than 5

Question 18

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Accepted Answer

A) True 
 B)False

Question 19

When the underlying mean of a time series changes frequently but there is no trend, cyclical, or seasonal influence,

Accepted Answer

A)  an exponential smoothing forecast with alpha = 0.01 should outperform a exponential smoothing forecast with alpha = 0.30. 
B)  a simple moving average forecast with n = 3 should outperform a simple moving average forecast with n = 20. 
C)  a simple moving average forecast with n = 20 should perform about the same as a simple moving average forecast with n = 3. 
D)  a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3. 
A)  an exponential smoothing forecast with alpha = 0.01 should outperform a exponential smoothing forecast with alpha = 0.30. 
B)  a simple moving average forecast with n = 3 should outperform a simple moving average forecast with n = 20. 
C)  a simple moving average forecast with n = 20 should perform about the same as a simple moving average forecast with n = 3. 
D)  a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3.

Question 20

Table 11.5.

-Use the information in Table 11.5. Using the exponential smoothing method, with alpha equal to 0.2, what is the forecasted demand for November? Use an initial value for the forecast (July) equal to 277 units.

Accepted Answer

A)  less than or equal to 260 units 
B)  greater than 260 but less than or equal to 275 units 
C)  greater than 275 but less than or equal to 285 units 
D)  more than 285 units 
A)  less than or equal to 260 units 
B)  greater than 260 but less than or equal to 275 units 
C)  greater than 275 but less than or equal to 285 units 
D)  more than 285 units

When a trend is present, exponential smoothing always will be below or above the actual demand.

One of the basic time series patterns is trend.

A trend in a time series is a systematic increase or decrease in the average of the series over time.

Define and discuss market research as it applies to forecasting.

A(n) _________ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Executive opinion is a forecasting method in which the opinion, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Describe the judgment method technique of forecasting.

The exponential smoothing method is a sophisticated weighted moving average method.

Which one of the following is an example of causal forecasting technique?

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series. List and briefly describe the five basic patterns of most demand time series.

A weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier methods is called

_________ forecasting is a method that selects the best forecast from a group of forecasts generated by simple techniques.

Table 11.7. Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. The forecast for month 3 is

The advantage of the simple moving average forecast is that it allows you to emphasize recent demand over earlier demand.

Which one of the following statements about forecasting is TRUE?

Table 11.6. -Use the information in Table 11.6. Use the exponential smoothing method with ? = 0.5 to forecast the sales for year 5.

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

When the underlying mean of a time series changes frequently but there is no trend, cyclical, or seasonal influence,

Table 11.5. -Use the information in Table 11.5. Using the exponential smoothing method, with alpha equal to 0.2, what is the forecasted demand for November? Use an initial value for the forecast (July) equal to 277 units.

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Exam 11: Managing Demand and Forecasting

When a trend is present, exponential smoothing always will be below or above the actual demand.

One of the basic time series patterns is trend.

A trend in a time series is a systematic increase or decrease in the average of the series over time.

Define and discuss market research as it applies to forecasting.

A(n) _________ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Executive opinion is a forecasting method in which the opinion, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Describe the judgment method technique of forecasting.

The exponential smoothing method is a sophisticated weighted moving average method.

Which one of the following is an example of causal forecasting technique?

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series. List and briefly describe the five basic patterns of most demand time series.

A weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier methods is called

_________ forecasting is a method that selects the best forecast from a group of forecasts generated by simple techniques.

Table 11.7. Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. The forecast for month 3 is

The advantage of the simple moving average forecast is that it allows you to emphasize recent demand over earlier demand.

Which one of the following statements about forecasting is TRUE?

Table 11.6. -Use the information in Table 11.6. Use the exponential smoothing method with ? = 0.5 to forecast the sales for year 5.

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

When the underlying mean of a time series changes frequently but there is no trend, cyclical, or seasonal influence,

Table 11.5. -Use the information in Table 11.5. Using the exponential smoothing method, with alpha equal to 0.2, what is the forecasted demand for November? Use an initial value for the forecast (July) equal to 277 units.

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Operations Planning and Scheduling

Resource Planning

Filters