Exam 15: Demand Management and Forecasting

Which of the following forecasting methodologies is considered a time series forecasting technique?

For every forecasting problem there is one best forecasting technique.

Linear regression is not useful for aggregate planning.

Trend lines are usually the last things considered when developing a forecast.

A company wants to generate a forecast for unit demand for year 2012 using exponential smoothing.The actual demand in year 2011 was 120.The forecast demand in year 2011 was 110.Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2012 forecast value?

In general, which forecasting time frame best identifies seasonal effects?

Regression is a functional relationship between two or more correlated variables, where one variable is used to predict another.

If a firm produced a standard item with relatively stable demand, the smoothing constant alpha used in an exponential smoothing forecasting model would tend to be in which of the following ranges?

The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast.

Baysean analysis is the simplest way to choose weights for the weighted moving average forecasting model.

A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values , and we want to weight year 2011 at 10% and year 2012 at 90%, which of the following is the weighted moving average forecast for year 2013?

RSFE in forecasting stands for "running sum of forecast errors."

Exponential smoothing is always the most accurate of all forecasting models.

Cyclical influences on demand are often expressed graphically as a linear function that is either upward or downward sloping.

Which of the following forecasting methodologies is considered a time series forecasting technique?

Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.

RSFE in forecasting stands for "reliable safety function error."

Which two of the following are among the major reasons that exponential smoothing has become well accepted as a forecasting technique?

In business forecasting, what is usually considered a long-term time period?

Random errors can be defined as those that cannot be explained by the forecast model being used.