Exam 8: Forecasting Demand Planning

The ABC Company sells computers. Monthly sales for a six-month period are as follows: Compute the sales forecast for July using the following approaches: a. Mean b. Four month simple moving average c. Exponential smoothing with an alpha smoothing constant = .70 and a June forecast of 22,000

A horizontal data pattern typically occurs with demand patterns for a new product.

The process of influencing demand is called:

Utilizing the mean forecasting model is best for mature, stable products.

An example of the impact of forecasting on marketing is the decision to enter a new market.

Seasonality and cycles are examples of forecasting data types.

When selecting a forecasting model, a key consideration relates to the type of data available.

Examples of quantitative forecasting models include:

The mean and moving average forecasting models are typically best for _________ products:

Sharing demand and forecast data with supply chain partners can help mitigate the bullwhip effect.

The planning process allows a business to be prepared for future events.

Exponential smoothing allows a forecast to put greater or less weight on certain data points.

The process of preparing for future events is__________:

The Delphi method is an example of a qualitative forecasting method.

It is important for all members of a supply chain to develop independent forecasts.

Forecasting and planning are especially important given customers' increasing demands for responsiveness.

Qualitative forecasting methods rely heavily on data sets.

A time series forecasting model evaluates data points over a period of time.

Longer term forecasts are more accurate because a business has more time to adjust the forecast.

CPFR is a five step process by which supply chain partners generate joint forecasts.