Question 1

Which one of the following statements is TRUE?

Accepted Answer

A)  The ideal of zero bias and zero MAD can be accomplished by systematically searching for the best values of the smoothing constants. 
B)  Bias is always less than MAD. 
C)  For projections of more stable demand patterns without trends, seasonal influences, or cyclical influences, use larger values of n in the simple moving average approach. 
D)  Getting a single forecast of 500 units for the month of July is better than getting a forecast that there is a 95 percent chance that demand for July will be between 450 and 550 units. 
A)  The ideal of zero bias and zero MAD can be accomplished by systematically searching for the best values of the smoothing constants. 
B)  Bias is always less than MAD. 
C)  For projections of more stable demand patterns without trends, seasonal influences, or cyclical influences, use larger values of n in the simple moving average approach. 
D)  Getting a single forecast of 500 units for the month of July is better than getting a forecast that there is a 95 percent chance that demand for July will be between 450 and 550 units.

Question 2

An initial forecast must be obtained by another method,before beginning a series of exponentially smoothed forecasts.

Accepted Answer

A) True 
 B)False

Question 3

Explain how the value of alpha affects forecasts produced by exponential smoothing.

Accepted Answer

The smoothing constant alpha allows rece

Question 4

________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and it recognizes trends and seasonal patterns.

Accepted Answer

The answer of ________ analysis is a statistical approach that...

Question 5

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the three-month moving average forecasts.

Accepted Answer

A)  less than or equal to 2 
B)  greater than 2 but less than or equal to 4 
C)  greater than 4 but less than or equal to 6 
D)  greater than 6 
A)  less than or equal to 2 
B)  greater than 2 but less than or equal to 4 
C)  greater than 4 but less than or equal to 6 
D)  greater than 6

Question 6

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

Accepted Answer

A)  horizontal 
B)  seasonal 
C)  random 
D)  cyclical 
A)  horizontal 
B)  seasonal 
C)  random 
D)  cyclical

Question 7

Table 10.4
 $$\begin{array} { | l | c | } 
\hline { \text { Month } } & \begin{array} { c } 
\text { Actual } \
\text { Sales }
\end{array} \
\hline \text { Tanuary } & 23 \
\text { February } & 18 \
\text { March } & 22 \
\text { April } & 28 \
\text { May } & 24 \
\hline
\end{array}$$
-Use the information in Table 10.4.The forecasting equation for a three-month weighted moving average is:
$A_{t}=W_{1} D_{t}+W_{2} D_{t}-1+W_{3} D_{t}-2 ^{A_{t}}=W_{1} D_{t}+W_{2} D_{{t}_{-1}}+W_{3} D_{{t}_{-2}}$

If the sales for June were 40 units and the weights are W?= 1/2,W? = 1/3,and W? = 1/6,what is the forecast for July?

Accepted Answer

A)  less than or equal to 30 units 
B)  greater than 30 but less than or equal to 33 units 
C)  greater than 33 but less than or equal to 36 units 
D)  greater than 36 units 
A)  less than or equal to 30 units 
B)  greater than 30 but less than or equal to 33 units 
C)  greater than 33 but less than or equal to 36 units 
D)  greater than 36 units

Question 8

Explain what r = 0 means in regression analysis.

Accepted Answer

There is no correlat

Question 9

Executive opinion is a forecasting method in which the opinion,experience,and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Accepted Answer

A) True 
 B)False

Which one of the following statements is TRUE?

An initial forecast must be obtained by another method,before beginning a series of exponentially smoothed forecasts.

Explain how the value of alpha affects forecasts produced by exponential smoothing.

________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and it recognizes trends and seasonal patterns.

Table 10.8 A manager wants to forecast the monthly demand for a machine the company produces. Month No. Machines Sold 1 50 2 65 3 52 4 56 5 55 6 60 -Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the three-month moving average forecasts.

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

Explain what r = 0 means in regression analysis.

Executive opinion is a forecasting method in which the opinion,experience,and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Capacity

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters

Exam 10: Managing Demand and Forecasting

Which one of the following statements is TRUE?

An initial forecast must be obtained by another method,before beginning a series of exponentially smoothed forecasts.

Explain how the value of alpha affects forecasts produced by exponential smoothing.

________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and it recognizes trends and seasonal patterns.

Table 10.8 A manager wants to forecast the monthly demand for a machine the company produces. Month No. Machines Sold 1 50 2 65 3 52 4 56 5 55 6 60 -Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the three-month moving average forecasts.

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

Explain what r = 0 means in regression analysis.

Executive opinion is a forecasting method in which the opinion,experience,and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Capacity

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters