Exam 17: Forecasting

Because of heightened competition resulting from globalization,most companies find little strategic value in long-range forecasts.

One reason time series methods are popular for forecasting is that they are relatively easy to use and understand.

The smoothing constant,α,in the exponential smoothing forecast

If the forecast for July was 3,300 and the actual demand for July was 3,250,then the exponential smoothing forecast for August using α = 0.20 is

The exponential smoothing model produces a naïve forecast when the smoothing constant,α,is equal to

A forecasting model has produced the following forecasts: At the end of May the average error would be

A qualitative procedure used to develop a consensus forecast is known as

Selecting the type of forecasting method to use depends on

Continuous replenishment systems rely heavily on extremely accurate long-term forecasts.

Forecasts based on mathematical formulas are referred to as qualitative forecasts.

The closer the smoothing constant,α,is to 1.0 the

Correlation is a measure of the strength of the

A ___________ is an up-and-down movement in demand that repeats itself over a period of more than a year.

Forecast methods based on judgment,opinion,past experiences,or best guesses are known as ___________ methods.