Question 1

A company has calculated its running sum of forecast errors to be 1,000 and its tracking signal is 50.What is the company's mean absolute deviation?

Accepted Answer

The answer of A company has calculated its running sum...

Question 2

If a firm produced a product that is experiencing growth in demand,the smoothing constant alpha used in an exponential smoothing forecasting model would tend to be which of the following?

Accepted Answer

A) Close to zero 
B) A very low percentage,less than 10% 
C) The more rapid the growth,the higher the percentage 
D) The more rapid the growth,the lower the percentage 
E) 50% or more 
A) Close to zero 
B) A very low percentage,less than 10% 
C) The more rapid the growth,the higher the percentage 
D) The more rapid the growth,the lower the percentage 
E) 50% or more

Question 3

A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 35.Which of the following is the company's tracking signal?

Accepted Answer

A) Cannot be calculated based on this information 
B) About 14.3 
C) More than 35 
D) Exactly 35 
E) About 0.07 
A) Cannot be calculated based on this information 
B) About 14.3 
C) More than 35 
D) Exactly 35 
E) About 0.07

Question 4

A company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?

Accepted Answer

A) 100.5 
B) 140.0 
C) 142.5 
D) 145.5 
E) 155.0 
A) 100.5 
B) 140.0 
C) 142.5 
D) 145.5 
E) 155.0

Question 5

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

Accepted Answer

A) Input/output models 
B) Exponential averaging 
C) Simple movement smoothing 
D) Weighted moving average 
E) Simulation 
A) Input/output models 
B) Exponential averaging 
C) Simple movement smoothing 
D) Weighted moving average 
E) Simulation

Question 6

As a consultant you have been asked to generate a unit demand forecast for a product for Year 2009 using exponential smoothing.Actual demand in year 2008 was 950 but the forecast for that year 1,060.Using this data and a smoothing constant alpha of 0.5,which of the following is the resulting year 2009 forecast value?

Accepted Answer

The answer of As a consultant you have been asked...

Question 7

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Accepted Answer

A) Grass roots 
B) Econometric models 
C) Regression analysis 
D) Exponential smoothing 
E) Simple moving average 
A) Grass roots 
B) Econometric models 
C) Regression analysis 
D) Exponential smoothing 
E) Simple moving average

Question 8

The exponential smoothing method requires which of the following data to forecast the future?

Accepted Answer

A) The most recent forecast,the most recent demand and the smoothing constant 
B) Precise actual demand for the past 10-15 years 
C) The slope of the trendline and the seasonality peak-to-trough ratio 
D) Overall industry demand data 
E) Tracking values alpha,beta and gamma 
A) The most recent forecast,the most recent demand and the smoothing constant 
B) Precise actual demand for the past 10-15 years 
C) The slope of the trendline and the seasonality peak-to-trough ratio 
D) Overall industry demand data 
E) Tracking values alpha,beta and gamma

Question 9

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 2007 at 10% and year 2008 at 90%,which of the following is the weighted moving average forecast for year 2009?

Accepted Answer

A) 120 
B) 128 
C) 133 
D) 138 
E) 142 
A) 120 
B) 128 
C) 133 
D) 138 
E) 142

Question 10

Given a prior forecast demand value of 1,100,a related actual demand value of 1,000 and a smoothing constant alpha of 0.3,what is the exponential smoothing forecast value?

Accepted Answer

A) 1,000 
B) 1,030 
C) 1,070 
D) 1,130 
E) 970 
A) 1,000 
B) 1,030 
C) 1,070 
D) 1,130 
E) 970

Question 11

A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?

Accepted Answer

A) 100.5 
B) 122.5 
C) 133.3 
D) 135.6 
E) 139.3 
A) 100.5 
B) 122.5 
C) 133.3 
D) 135.6 
E) 139.3

Question 12

Name the four basic types of forecasting?

Accepted Answer

1.Qualitative
2.Time

Question 13

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

Accepted Answer

A) Six weeks to one year 
B) Three months to two years 
C) One to five years 
D) One to six months 
E) Six months to six years 
A) Six weeks to one year 
B) Three months to two years 
C) One to five years 
D) One to six months 
E) Six months to six years

Question 14

In the simple exponential smoothing forecasting model you need at least 100 observations to set the weight.

Accepted Answer

A) True 
 B)False

Question 15

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?

Accepted Answer

A) Cyclical elements 
B) Future demand 
C) Past demand 
D) Inconsistent demand 
E) Level demand 
A) Cyclical elements 
B) Future demand 
C) Past demand 
D) Inconsistent demand 
E) Level demand

Question 16

A company has calculated its running sum of forecast errors to be 400 and its mean absolute deviation is exactly 25.What is the company's tracking signal?

Accepted Answer

The answer of A company has calculated its running sum...

Question 17

What three pieces of data are needed to use the exponential smoothing method of forecasting the future?

Accepted Answer

1.The most recent forecast
2.T

Question 18

In the weighted moving average forecasting model the weights must add up to one times the number of data points.

Accepted Answer

A) True 
 B)False

Question 19

Linear regression is not useful for aggregate planning.

Accepted Answer

A) True 
 B)False

Question 20

Focus forecasting is an approach to forecasting that tries several rules that seem logical and easy to understand to project past data into the future.

Accepted Answer

A) True 
 B)False

Exam 15: Demand Management and Forecasting

A company has calculated its running sum of forecast errors to be 1,000 and its tracking signal is 50.What is the company's mean absolute deviation?

If a firm produced a product that is experiencing growth in demand,the smoothing constant alpha used in an exponential smoothing forecasting model would tend to be which of the following?

A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 35.Which of the following is the company's tracking signal?

A company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?

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

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

The exponential smoothing method requires which of the following data to forecast the future?

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 2007 at 10% and year 2008 at 90%,which of the following is the weighted moving average forecast for year 2009?

Given a prior forecast demand value of 1,100,a related actual demand value of 1,000 and a smoothing constant alpha of 0.3,what is the exponential smoothing forecast value?

A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?

Name the four basic types of forecasting?

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

In the simple exponential smoothing forecasting model you need at least 100 observations to set the weight.

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?

A company has calculated its running sum of forecast errors to be 400 and its mean absolute deviation is exactly 25.What is the company's tracking signal?

What three pieces of data are needed to use the exponential smoothing method of forecasting the future?

In the weighted moving average forecasting model the weights must add up to one times the number of data points.

Linear regression is not useful for aggregate planning.

Focus forecasting is an approach to forecasting that tries several rules that seem logical and easy to understand to project past data into the future.

Introduction to the Field

Operations and Supply Strategy

Project Management

Product and Service Design

Strategic Capacity Management

Process Analysis

Manufacturing Processes

Service Processes

Six Sigma Quality

Supply-Chain Strategy

Logistics and Facility Location

Lean Manufacturing

Operations Consulting Reengineering

Enterprise Resource Planning Systems

Aggregate Sales and Operations Planning

Inventory Control

Material Requirements Planning

Scheduling

Constraint Management

Linear Programming Using the Excel Solver

Learning Curves

Job Design Work Measurement

Waiting Line Analysis

Process Capability and Spc

Simulation

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