Question 1

Forecast bias is measured by the per-period average of the sum of forecast errors.

Accepted Answer

A) True 
 B)False

Question 2

The per-period average of cumulative error is called

Accepted Answer

A) cumulative forecast variation. 
B) absolute error. 
C) average error. 
D) noise. 
A) cumulative forecast variation. 
B) absolute error. 
C) average error. 
D) noise.

Question 3

The _________________ forecast method consists of an exponential smoothing forecast with a trend adjustment factor added to it.

Accepted Answer

A) exponentially smoothed 
B) adjusted exponential smoothing 
C) time series 
D) moving average 
A) exponentially smoothed 
B) adjusted exponential smoothing 
C) time series 
D) moving average

Question 4

Given the demand and forecast values shown in the following table,   calculate the three-period moving average forecast for November.

Accepted Answer

A) 516. 
B) 528. 
C) 524. 
D) 515. 
A) 516. 
B) 528. 
C) 524. 
D) 515.

Question 5

Qualitative forecasts use mathematical techniques and statistical formulas.

Accepted Answer

A) True 
 B)False

Question 6

Linear regression relates two variables using a linear model.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a reason why a forecast can go out of control?

Accepted Answer

A) a change in trend 
B) an irregular variation such as unseasonable weather 
C) a promotional campaign 
D) All of these answer choices are correct. 
A) a change in trend 
B) an irregular variation such as unseasonable weather 
C) a promotional campaign 
D) All of these answer choices are correct.

Question 8

Which of the following is not a type of predictable demand behavior?

Accepted Answer

A) trend 
B) random variation 
C) cycle 
D) seasonal pattern 
A) trend 
B) random variation 
C) cycle 
D) seasonal pattern

Question 9

A forecast where the current period's demand is used as the next period's forecast is known as a

Accepted Answer

A) moving average forecast. 
B) naïve forecast. 
C) weighted moving average forecast. 
D) Delphi method. 
A) moving average forecast. 
B) naïve forecast. 
C) weighted moving average forecast. 
D) Delphi method.

Question 10

Regression forecasting methods relate _________to other factors that cause demand behavior.

Accepted Answer

A) supply 
B) demand 
C) time 
D) money 
A) supply 
B) demand 
C) time 
D) money

Question 11

Explain the difference between qualitative and quantitative forecasting methods.

Accepted Answer

Qualitative forecasting methods are base

Question 12

The weighted moving average forecast for the fifth period,with weights of 0.15 for period 1,0.20 for period 2,0.25 for period 3,and 0.40 for period 4,using the demand data shown below is

Accepted Answer

A) 3,760. 
B) 3,700. 
C) 3,650. 
D) 3,325. 
A) 3,760. 
B) 3,700. 
C) 3,650. 
D) 3,325.

Question 13

The type of forecasting method selected depends on time frame,demand behavior and causes of behavior.

Accepted Answer

A) True 
 B)False

Question 14

Forecasts of product demand determine how much

Accepted Answer

A) inventory is needed. 
B) product to make. 
C) material to purchase from suppliers. 
D) All of these answer choices are correct. 
A) inventory is needed. 
B) product to make. 
C) material to purchase from suppliers. 
D) All of these answer choices are correct.

Question 15

A correlation coefficient is a measure of the strength of the linear relationship between an independent and a dependent variable.

Accepted Answer

A) True 
 B)False

Question 16

Short-midrange forecasts tend to use quantitative models that forecast demand based on historical demand.

Accepted Answer

A) True 
 B)False

Question 17

The average,absolute difference between the forecast and demand is a popular measure of forecast error.

Accepted Answer

A) True 
 B)False

Question 18

(Use the following information for the next five problems. )
The owner of Koffi,the sole coffee house located in a resort area,wants to develop a forecast based on the relationship between tourism and coffee drinks sold.He has generated the following data over the past 12 months:
   The data from using Data Analysis on Excel is as follows:
  
-What is the approximate slope,b?

Accepted Answer

A) −11.6 
B) 11.6 
C) 6.4 
D) −6.4 
A) −11.6 
B) 11.6 
C) 6.4 
D) −6.4

Question 19

Because of ease of use and simplicity,exponential smoothing is preferred over smoothing average.

Accepted Answer

A) True 
 B)False

Question 20

Forecasting customer demand is often a key to providing good quality service.

Accepted Answer

A) True 
 B)False

Exam 17: Forecasting

Forecast bias is measured by the per-period average of the sum of forecast errors.

The per-period average of cumulative error is called

The _________________ forecast method consists of an exponential smoothing forecast with a trend adjustment factor added to it.

Given the demand and forecast values shown in the following table, calculate the three-period moving average forecast for November.

Qualitative forecasts use mathematical techniques and statistical formulas.

Linear regression relates two variables using a linear model.

Which of the following is a reason why a forecast can go out of control?

Which of the following is not a type of predictable demand behavior?

A forecast where the current period's demand is used as the next period's forecast is known as a

Regression forecasting methods relate _________to other factors that cause demand behavior.

Explain the difference between qualitative and quantitative forecasting methods.

The weighted moving average forecast for the fifth period,with weights of 0.15 for period 1,0.20 for period 2,0.25 for period 3,and 0.40 for period 4,using the demand data shown below is

The type of forecasting method selected depends on time frame,demand behavior and causes of behavior.

Forecasts of product demand determine how much

A correlation coefficient is a measure of the strength of the linear relationship between an independent and a dependent variable.

Short-midrange forecasts tend to use quantitative models that forecast demand based on historical demand.

The average,absolute difference between the forecast and demand is a popular measure of forecast error.

Because of ease of use and simplicity,exponential smoothing is preferred over smoothing average.

Forecasting customer demand is often a key to providing good quality service.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Processes and Technology

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Inventory Management

Supplement Operational Decision-Making Tools: Simulation

Sales and Operations Planning

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

Filters