Question 1

Customer service levels can be improved by better:

Accepted Answer

A) mission statements 
B) control charting 
C) short term forecast accuracy 
D) exponential smoothing 
E) customer selection 
A) mission statements 
B) control charting 
C) short term forecast accuracy 
D) exponential smoothing 
E) customer selection

Question 2

What is this year's forecast using the least squares trend line for these data?

Accepted Answer

A) 3,600 
B) 3,500 
C) 3,400 
D) 3,300 
E) 3,200 
A) 3,600 
B) 3,500 
C) 3,400 
D) 3,300 
E) 3,200

Question 3

Forecasts based on time series (historical) data are referred to as associative forecasts.

Accepted Answer

A) True 
 B)False

Question 4

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naïve forecast would yield.

Accepted Answer

A) True 
 B)False

Question 5

What is this week's forecast using exponential smoothing with alpha = .2, if the forecast for two weeks ago was 90?

Accepted Answer

A) 49 
B) 50 
C) 52 
D) 65 
E) 77 
A) 49 
B) 50 
C) 52 
D) 65 
E) 77

Question 6

What is this month's forecast using the naive approach?

Accepted Answer

A) 100 
B) 160 
C) 130 
D) 140 
E) 120 
A) 100 
B) 160 
C) 130 
D) 140 
E) 120

Question 7

Bias is measured by the cumulative sum of forecast errors.

Accepted Answer

A) True 
 B)False

Question 8

The primary method for associative forecasting is:

Accepted Answer

A) sensitivity analysis 
B) regression analysis 
C) simple moving averages 
D) centered moving averages 
E) exponential smoothing 
A) sensitivity analysis 
B) regression analysis 
C) simple moving averages 
D) centered moving averages 
E) exponential smoothing

Question 9

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Accepted Answer

The answer of A manager wants to choose one of...

Question 10

Given forecast errors of 5, 0, - 4, and 3, what is the mean absolute deviation?

Accepted Answer

A) 4 
B) 3 
C) 2.5 
D) 2 
E) 1 
A) 4 
B) 3 
C) 2.5 
D) 2 
E) 1

Question 11

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

Accepted Answer

A) True 
 B)False

Question 12

A forecast method is generally deemed to perform adequately when the errors exhibit an identifiable pattern.

Accepted Answer

A) True 
 B)False

Question 13

What is this year's forecast using the least squares trend line for these data?

Accepted Answer

A) 20,000 
B) 21,000 
C) 22,000 
D) 23,000 
E) 24,000 
A) 20,000 
B) 21,000 
C) 22,000 
D) 23,000 
E) 24,000

Question 14

What is the forecast for this year using the least squares trend line for these data?

Accepted Answer

A) 18,750 
B) 19,500 
C) 21,000 
D) 22,650 
E) 22,800 
A) 18,750 
B) 19,500 
C) 21,000 
D) 22,650 
E) 22,800

Question 15

Exponential smoothing is a form of weighted averaging.

Accepted Answer

A) True 
 B)False

Question 16

A manager uses this equation to predict demand: Yt = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.

Accepted Answer

Question 17

A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.

Accepted Answer

A) True 
 B)False

Question 18

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Accepted Answer

A) True 
 B)False

Question 19

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not necessarily an element of a good forecast?

Accepted Answer

A) estimate of accuracy 
B) timeliness 
C) meaningful units 
D) low cost 
E) written 
A) estimate of accuracy 
B) timeliness 
C) meaningful units 
D) low cost 
E) written

Exam 3: Forecasting

Customer service levels can be improved by better:

What is this year's forecast using the least squares trend line for these data?

Forecasts based on time series (historical) data are referred to as associative forecasts.

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naïve forecast would yield.

What is this week's forecast using exponential smoothing with alpha = .2, if the forecast for two weeks ago was 90?

What is this month's forecast using the naive approach?

Bias is measured by the cumulative sum of forecast errors.

The primary method for associative forecasting is:

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Given forecast errors of 5, 0, - 4, and 3, what is the mean absolute deviation?

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

A forecast method is generally deemed to perform adequately when the errors exhibit an identifiable pattern.

What is this year's forecast using the least squares trend line for these data?

What is the forecast for this year using the least squares trend line for these data?

Exponential smoothing is a form of weighted averaging.

A manager uses this equation to predict demand: Yt = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.

A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Which of the following is not necessarily an element of a good forecast?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters

A manager uses this equation to predict demand: Y_t = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.