Question 1

What is a tracking signal? How can managers use the information provided by the tracking signal to improve the quality of forecasts?

Accepted Answer

Tracking signal is used to determine if

Question 2

What does the acronym CPFR represent?

Accepted Answer

A)  Coordinated planning and forecasting relationships 
B)  Collaborative planning, forecasting, and replenishment 
C)  Centralized purchasing and forecasting relationships 
D)  Collaborative purchasing, forecasting, and receivables 
A)  Coordinated planning and forecasting relationships 
B)  Collaborative planning, forecasting, and replenishment 
C)  Centralized purchasing and forecasting relationships 
D)  Collaborative purchasing, forecasting, and receivables

Question 3

Answer the following questions regarding quantitative and qualitative forecasting:
a.Define quantitative forecasting.
b.Explain the naïve forecasting method and give an example.
c.What are the benefits of using the naïve forecasting method?
d.Under which circumstances would one utilize a combination of both quantitative and qualitative forecasting?

Accepted Answer

a.Define quantitative forecasting.
Quant

Question 4

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

Accepted Answer

A) True 
 B)False

Question 5

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

Accepted Answer

A)  Naïve Forecast 
B)  Weighted Moving Average 
C)  Simple Moving Average 
D)  Exponential Smoothing 
A)  Naïve Forecast 
B)  Weighted Moving Average 
C)  Simple Moving Average 
D)  Exponential Smoothing

Question 6

Given the following information, the forecast for period two using exponential smoothing an   = 0.3 is 60.5.

Accepted Answer

A) True 
 B)False

Question 7

Cyclical variations are longer than a year and are influenced by macroeconomic and political factors.

Accepted Answer

A) True 
 B)False

Question 8

What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?

Accepted Answer

A)  Trend Variations 
B)  Cyclical Variations 
C)  Random Variations 
D)  Seasonal Variations 
A)  Trend Variations 
B)  Cyclical Variations 
C)  Random Variations 
D)  Seasonal Variations

Question 9

According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT:

Accepted Answer

A)  Making organizational and procedural changes 
B)  Trust between supply chain partners 
C)  Cost 
D)  Supplier lead times 
A)  Making organizational and procedural changes 
B)  Trust between supply chain partners 
C)  Cost 
D)  Supplier lead times

Question 10

Inaccurate forecasts can result in negative outcomes like:

Accepted Answer

A)  High inventory costs and increased profits 
B)  Imbalances in supply and demand 
C)  Material shortages and decreased costs of obsolescence 
D)  Low inventory costs and stockouts 
A)  High inventory costs and increased profits 
B)  Imbalances in supply and demand 
C)  Material shortages and decreased costs of obsolescence 
D)  Low inventory costs and stockouts

Question 11

Forecast error is the actual quantity minus the forecast.

Accepted Answer

A) True 
 B)False

Question 12

CPFR is more likely to succeed if companies educate their employees on the benefits of the process changes and the disadvantages of maintaining the status quo.

Accepted Answer

A) True 
 B)False

Question 13

Use the data set below to answer the questions that follow.
   
a.Find the four-period simple moving average forecasts for Periods 5 and 6.
b.Find the four-period weighted moving average forecasts for Periods 5 and 6 using weights of 0.05, 0.25, 0.30, and 0.40 from the earliest period to the latest period, respectively.
c.Which set of forecasts is more accurate, the simple moving average forecasts or the weighted moving average forecasts? Why is that set of forecasts more accurate in this particular case (using Data Set E4)?
d.Will that type of forecast always be more accurate? Why or why not?

Accepted Answer

a.Find the four period simple moving ave

Question 14

When there is not a lot of currently relevant data available it is generally best to use:

Accepted Answer

A)  Qualitative forecasting 
B)  Time series forecasting 
C)  Naive forecasting 
D)  Simple moving average forecasting 
A)  Qualitative forecasting 
B)  Time series forecasting 
C)  Naive forecasting 
D)  Simple moving average forecasting

Question 15

When linear trend forecasts are developed, demand would typically be:

Accepted Answer

A)  The independent variable 
B)  The dependent variable 
C)  The lead variable 
D)  The passive variable 
A)  The independent variable 
B)  The dependent variable 
C)  The lead variable 
D)  The passive variable

Question 16

Toymaker Spin Master, did not properly forecast demands for their new product, Hatchimals, in 2016.This caused stockouts for their distributors.

Accepted Answer

A) True 
 B)False

Question 17

In 2016, Spin Master, did not properly forecast demand for their new product, Hatchimals, causing ___________ for their distributors.

Accepted Answer

A)  Excess stock 
B)  The bullwhip effect 
C)  Stockouts 
D)  Price reductions 
A)  Excess stock 
B)  The bullwhip effect 
C)  Stockouts 
D)  Price reductions

Question 18

Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.

Accepted Answer

A) True 
 B)False

Question 19

Random variations represent either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes and income shifts.

Accepted Answer

A) True 
 B)False

Question 20

A forecasting method has produced the following data over the past 5 months shown in the data set.What is the mean absolute deviation (accurate to 1 decimals)?

Accepted Answer

A)  10.0 
B)  -1.2 
C)  2.0 
D)  2.4 
A)  10.0 
B)  -1.2 
C)  2.0 
D)  2.4

What is a tracking signal? How can managers use the information provided by the tracking signal to improve the quality of forecasts?

What does the acronym CPFR represent?

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

Given the following information, the forecast for period two using exponential smoothing an = 0.3 is 60.5.

Cyclical variations are longer than a year and are influenced by macroeconomic and political factors.

What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?

According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT:

Inaccurate forecasts can result in negative outcomes like:

Forecast error is the actual quantity minus the forecast.

CPFR is more likely to succeed if companies educate their employees on the benefits of the process changes and the disadvantages of maintaining the status quo.

When there is not a lot of currently relevant data available it is generally best to use:

When linear trend forecasts are developed, demand would typically be:

Toymaker Spin Master, did not properly forecast demands for their new product, Hatchimals, in 2016.This caused stockouts for their distributors.

In 2016, Spin Master, did not properly forecast demand for their new product, Hatchimals, causing ___________ for their distributors.

Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.

Random variations represent either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes and income shifts.

A forecasting method has produced the following data over the past 5 months shown in the data set.What is the mean absolute deviation (accurate to 1 decimals)?

Introduction to Supply Chain Management

Purchasing Management

Creating and Managing Supplier Relationships

Ethical and Sustainable Sourcing

Resource Planning Systems

Inventory Management

Process Management: Lean and Six Sigma in the Supply Chain

Domestic U.S.and Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters

Exam 5: Demand Forecasting

What is a tracking signal? How can managers use the information provided by the tracking signal to improve the quality of forecasts?

What does the acronym CPFR represent?

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

Given the following information, the forecast for period two using exponential smoothing an = 0.3 is 60.5.

Cyclical variations are longer than a year and are influenced by macroeconomic and political factors.

What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?

According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT:

Inaccurate forecasts can result in negative outcomes like:

Forecast error is the actual quantity minus the forecast.

CPFR is more likely to succeed if companies educate their employees on the benefits of the process changes and the disadvantages of maintaining the status quo.

When there is not a lot of currently relevant data available it is generally best to use:

When linear trend forecasts are developed, demand would typically be:

Toymaker Spin Master, did not properly forecast demands for their new product, Hatchimals, in 2016.This caused stockouts for their distributors.

In 2016, Spin Master, did not properly forecast demand for their new product, Hatchimals, causing ___________ for their distributors.

Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.

Random variations represent either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes and income shifts.

A forecasting method has produced the following data over the past 5 months shown in the data set.What is the mean absolute deviation (accurate to 1 decimals)?

Introduction to Supply Chain Management

Purchasing Management

Creating and Managing Supplier Relationships

Ethical and Sustainable Sourcing

Resource Planning Systems

Inventory Management

Process Management: Lean and Six Sigma in the Supply Chain

Domestic U.S.and Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters