Question 1

The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.

Accepted Answer

A) True 
 B)False

Question 2

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 3

The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods,and advertising budgets averaging $3,000 over the last 10 periods is:Y = 3250 + 120xThis indicates that a $1 increase in advertising will increase sales by:

Accepted Answer

A) $3370 
B) $250 
C) $120 
D) $1875 
A) $3370 
B) $250 
C) $120 
D) $1875

Question 4

If you felt that recent demand trends were more significant,and thus should be emphasized more in formulating a forecast,then in forecasting demand for the upcoming demand period,you would probably favor using a simple moving average over the conventional weighted moving average.

Accepted Answer

A) True 
 B)False

Question 5

Given the following information,calculate the forecast (accurate to 2 decimals)for period three using exponential smoothing and ? = 0.3. $\begin{array}{lll}
\text { Period } & \text { Demand } & \text { Forecast } \
\hline 1 & 64 & 59 \
2 & 70 &
\end{array}$

Accepted Answer

A) 36.90 
B) 57.50 
C) 61.50 
D) 63.35 
A) 36.90 
B) 57.50 
C) 61.50 
D) 63.35

Question 6

If you were calculating a forecast using an exponential smoothing model,a calculation using α = 0.2 would be putting a greater emphasis on recent data,while a calculation using α = 0.8 would be putting a greater emphasis on past data.Thus a lower α is more responsive to changes in demand in the most recent periods.

Accepted Answer

A) True 
 B)False

Question 7

Qualitative methods of forecasting include which of the following:

Accepted Answer

A) Sales Force Composite 
B) Customer Surveys 
C) Jury of Executive Opinion 
D) All of these 
A) Sales Force Composite 
B) Customer Surveys 
C) Jury of Executive Opinion 
D) All of these

Question 8

Use the data set below (Data Set E3)to answer the questions that follow.Data Set E3 $\begin{array}{ll}
\text { Period } & \text { Sales Volume } \
\hline 1 & 1000 \
2 & 1200 \
3 & 1450 \
4 & 1750 \
5 & 2200 \
6 & 2750
\end{array}$ ​ 
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, 0.15, 0.30, and 0.50 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 E3)?
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 9

According to 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

The exponential smoothing forecast has the same value as the naïve forecast when α in the exponential smoothing model is equal to:

Accepted Answer

A) 0 
B) 0.5 
C) 1 
D) Insufficient information provided to determine answer 
A) 0 
B) 0.5 
C) 1 
D) Insufficient information provided to determine answer

Question 11

$\begin{array}{ll}
\text { Period } & \text { Sales Volume } \
\hline 1 & 10000 \
2 & 12400 \
3 & 14250 \
4 & 15750 \
5 & 20500 \
6 & 18500 \
7 & 15750 \
8 & 20500 \
9 & 21500 \
10 & 22550
\end{array}$
-Using Data Set E1,what would be the forecast for period 6 using a five period weighted moving average? The weights for each period are 0.05,0.10,0.20,0.30,and 0.35 from the oldest period to the most recent period,respectively.(Choose the closest answer.)

Accepted Answer

A) 16490 
B) 17825 
C) 14575 
D) 16275 
A) 16490 
B) 17825 
C) 14575 
D) 16275

Question 12

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 13

Some measures of forecasting accuracy include mean absolute deviation,mean absolute percentage error,and mean squared error.The formula for each is dependent on the forecast error,which is calculated by using the equation:

Accepted Answer

A) Actual demand for period t divided by the forecasted demand for period t 
B) Actual demand for period t plus the forecasted demand for period t 
C) Actual demand for period t minus the forecasted demand for period t 
D) The average of Actual demand for period t and forecasted demand for period t 
A) Actual demand for period t divided by the forecasted demand for period t 
B) Actual demand for period t plus the forecasted demand for period t 
C) Actual demand for period t minus the forecasted demand for period t 
D) The average of Actual demand for period t and forecasted demand for period t

Question 14

$\begin{array}{ll}
\text { Period } & \text { Sales Volume } \
\hline 1 & 10000 \
2 & 12400 \
3 & 14250 \
4 & 15750 \
5 & 20500 \
6 & 18500 \
7 & 15750 \
8 & 20500 \
9 & 21500 \
10 & 22550
\end{array}$
-Using Data Set E1,what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000.Use a smoothing constant of ? = 0.4 (Choose the closest answer.)

Accepted Answer

A) 14575 
B) 26100 
C) 16600 
D) 19700 
A) 14575 
B) 26100 
C) 16600 
D) 19700

Question 15

$\begin{array}{ll}
\text { Period } & \text { Sales Volume } \
\hline 1 & 10000 \
2 & 12400 \
3 & 14250 \
4 & 15750 \
5 & 20500 \
6 & 18500 \
7 & 15750 \
8 & 20500 \
9 & 21500 \
10 & 22550
\end{array}$
-Using Data Set E1,what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.)

Accepted Answer

A) 17625 
B) 15225 
C) 15300 
D) 17250 
A) 17625 
B) 15225 
C) 15300 
D) 17250

Question 16

Inaccurate forecasts can result in negative outcomes like:

Accepted Answer

A) Stockouts and poor responsiveness to market dynamics 
B) High inventory costs of inventory and increased profits 
C) Material shortages and decreased costs of obsolescence 
D) Low inventory costs of inventory and stockouts 
A) Stockouts and poor responsiveness to market dynamics 
B) High inventory costs of inventory and increased profits 
C) Material shortages and decreased costs of obsolescence 
D) Low inventory costs of inventory and stockouts

Question 17

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is FALSE:

Accepted Answer

A) Time Series forecasting is based on the assumption that the future is an extension of the past 
B) Cause-and-Effect forecasting assumes that one or more factors are related to demand and, therefore, can be used to predict future demand 
C) All quantitative methods become less accurate as the forecast's time horizon increases 
D) It is generally not recommended to use a combination of both quantitative and qualitative methods 
A) Time Series forecasting is based on the assumption that the future is an extension of the past 
B) Cause-and-Effect forecasting assumes that one or more factors are related to demand and, therefore, can be used to predict future demand 
C) All quantitative methods become less accurate as the forecast's time horizon increases 
D) It is generally not recommended to use a combination of both quantitative and qualitative methods

Question 19

According to the text,the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

Accepted Answer

A) True 
 B)False

Question 20

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

The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.

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.

The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods,and advertising budgets averaging $3,000 over the last 10 periods is:Y = 3250 + 120xThis indicates that a $1 increase in advertising will increase sales by:

If you felt that recent demand trends were more significant,and thus should be emphasized more in formulating a forecast,then in forecasting demand for the upcoming demand period,you would probably favor using a simple moving average over the conventional weighted moving average.

Given the following information,calculate the forecast (accurate to 2 decimals)for period three using exponential smoothing and ? = 0.3. Period Demand Forecast 1 64 59 2 70

Qualitative methods of forecasting include which of the following:

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

The exponential smoothing forecast has the same value as the naïve forecast when α in the exponential smoothing model is equal to:

What does the acronym CPFR represent?

Some measures of forecasting accuracy include mean absolute deviation,mean absolute percentage error,and mean squared error.The formula for each is dependent on the forecast error,which is calculated by using the equation:

Period Sales Volume 1 10000 2 12400 3 14250 4 15750 5 20500 6 18500 7 15750 8 20500 9 21500 10 22550 -Using Data Set E1,what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.)

Inaccurate forecasts can result in negative outcomes like:

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

Which of the following statements is FALSE:

According to the text,the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

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

Introduction to Supply Chain Management

Purchasing Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand 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

The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.

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.

The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods,and advertising budgets averaging $3,000 over the last 10 periods is:Y = 3250 + 120xThis indicates that a $1 increase in advertising will increase sales by:

If you felt that recent demand trends were more significant,and thus should be emphasized more in formulating a forecast,then in forecasting demand for the upcoming demand period,you would probably favor using a simple moving average over the conventional weighted moving average.

Given the following information,calculate the forecast (accurate to 2 decimals)for period three using exponential smoothing and ? = 0.3. Period Demand Forecast 1 64 59 2 70

Qualitative methods of forecasting include which of the following:

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

The exponential smoothing forecast has the same value as the naïve forecast when α in the exponential smoothing model is equal to:

What does the acronym CPFR represent?

Some measures of forecasting accuracy include mean absolute deviation,mean absolute percentage error,and mean squared error.The formula for each is dependent on the forecast error,which is calculated by using the equation:

Period Sales Volume 1 10000 2 12400 3 14250 4 15750 5 20500 6 18500 7 15750 8 20500 9 21500 10 22550 -Using Data Set E1,what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.)

Inaccurate forecasts can result in negative outcomes like:

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

Which of the following statements is FALSE:

According to the text,the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

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

Introduction to Supply Chain Management

Purchasing Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters