Question 1

The ________ variable is the variable that one wants to forecast.

Accepted Answer

The answer of The ________ variable is the variable that...

Question 2

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.Use the three-month moving average method to forecast sales for June.

Accepted Answer

A)  less than or equal to 20 units 
B)  greater than 20 but less than or equal to 22 units 
C)  greater than 22 but less than or equal to 24 units 
D)  greater than 24 units 
A)  less than or equal to 20 units 
B)  greater than 20 but less than or equal to 22 units 
C)  greater than 22 but less than or equal to 24 units 
D)  greater than 24 units

Question 3

Delphi forecasting refers to a change in the forces that have acted on demand in the past.

Accepted Answer

A) True 
 B)False

Question 4

The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.

Accepted Answer

A) True 
 B)False

Question 5

A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following time series forecasting methods will generate the most accurate forecasts when demands have a consistent trend pattern?

Accepted Answer

A)  simple moving average method 
B)  weighted moving average method 
C)  exponential smoothing method 
D)  trend-adjusted exponential smoothing method 
A)  simple moving average method 
B)  weighted moving average method 
C)  exponential smoothing method 
D)  trend-adjusted exponential smoothing method

Question 7

________ is a method of incorporating a trend in an exponentially smoothed forecast.

Accepted Answer

Trend-adju

Question 8

Calculate three forecasts using the following data.First,for periods 4 through 11,develop the exponentially smoothed forecasts using a forecast for period 3 ( $\mathrm { F } _ { 3 }$ )of 120.0 and an alpha of 0.3.Second,calculate the 3-period moving average forecast for periods 4 through 11.Third,calculate the weighted moving average for periods 4 through 11,using weights of .60,.30,and .10.Calculate the mean absolute deviation (MAD)and the cumulative sum of forecast error (CFE)for each forecasting procedure.Which forecasting procedure would you select? Why?
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Demand } \
\hline 1 & 120 \
2 & 115 \
3 & 125 \
4 & 119 \
5 & 127 \
6 & 114 \
7 & 120 \
8 & 124 \
9 & 116 \
10 & 137 \
\hline
\end{array}$$

Accepted Answer

Using MAD,the simple

Question 9

Which one of the following is an example of causal forecasting technique?

Accepted Answer

A)  weighted moving average 
B)  linear regression 
C)  exponential smoothing 
D)  Delphi method 
A)  weighted moving average 
B)  linear regression 
C)  exponential smoothing 
D)  Delphi method

Question 10

The Acme Computer Company has recorded sales of one of its products for a six-week period:
$$\begin{array} { | c | c | } 
\hline \text { Week } & \text { Sales } \
\hline 1 & 25 \
2 & 23 \
3 & 20 \
4 & 22 \
5 & 23 \
6 & 24 \
\hline
\end{array}$$
Using the three-week moving average method,forecast sales for week 7.

Accepted Answer

A)  20 
B)  21 
C)  22 
D)  23 
A)  20 
B)  21 
C)  22 
D)  23

Question 11

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Accepted Answer

A) True 
 B)False

Question 12

Table 10.5
 $$\begin{array} { | l | c | } 
\hline{ \text { Month } } & \begin{array} { c } 
\text { Demand } \
\text { (Units) }
\end{array} \
\hline \text { July } & 240 \
\text { August } & 310 \
\text { September } & 280 \
\text { October } & 250 \
\hline
\end{array}$$
-Use the information in Table 10.5.Using the weighted moving average technique and the following weights,what is the forecasted demand for November?
$$\begin{array} { | c | c | } 
\hline \text { Time Period } & \text { Weight } \
\hline \text { Mostrecent } & 50 \% \
\text { month } & 20 \% \
1 \text { month ago } & 20 \% \
2 \text { months ago } & 10 \% \
3 \text { months ago } & \
\hline
\end{array}$$

Accepted Answer

A)  less than or equal to 250 units 
B)  greater than 250 but less than or equal to 265 units 
C)  greater than 265 but less than or equal to 280 units 
D)  more than 280 units 
A)  less than or equal to 250 units 
B)  greater than 250 but less than or equal to 265 units 
C)  greater than 265 but less than or equal to 280 units 
D)  more than 280 units

Question 13

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Accepted Answer

Adjust quantitative forecasts when they

Question 14

Describe three popular measures of forecast accuracy.

Accepted Answer

Measures of forecast accuracy include: (

Question 15

When using linear regression for forecasting,the independent variable is the variable that one wants to forecast.

Accepted Answer

A) True 
 B)False

Question 16

List three advantages and three disadvantages of the moving average forecasting model.

Accepted Answer

Two advantages of the model are that it

Question 17

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

Accepted Answer

A) True 
 B)False

Question 18

________ forecasts are produced by averaging independent forecasts based on different methods or data or both.

Accepted Answer

The answer of ________ forecasts are produced by averaging independent...

Question 19

Which one of the following is an example of a time series forecasting technique?

Accepted Answer

A)  survey analysis 
B)  Delphi method 
C)  trend-adjusted exponential smoothing 
D)  market research 
A)  survey analysis 
B)  Delphi method 
C)  trend-adjusted exponential smoothing 
D)  market research

Question 20

Table 10.1
 $$\begin{array} { | l | c | } 
\hline \ { \text { Month } } & \text { Demand } \
\hline \text { January } & 55 \
\text { February } & 52 \
\text { March } & 57 \
\text { April } & 64 \
\text { May } & 58 \
\text { June } & 54 \
\text { July } & 62 \
\text { August } & 69 \
\hline
\end{array}$$
-Use the information in Table 10.1.Your boss has asked you to find a good technique to forecast short-term demand for an important product.You have decided to test the following four techniques against the historical data already given:
?Three-month simple moving average
?Three-month weighted moving average,with weight of 0.6 for the most recent month,0.3 for the second-most-recent month,and 0.1 for the third-most-recent month
?Three-month weighted moving average,with weights of 0.5 for the most recent month,0.3 for the second-most-recent month,and 0.2 for the third-most-recent month
HExponential smoothing (a = 0.3 and the forecast for March was 55)
Use each of the four techniques to forecast April through August,and then use the five months of forecasts to calculate MAD.Round all forecasts to the nearest whole number (i.e.,57.5 rounds to 58)just before doing your MAD calculations.Which of the four techniques is best in terms of MAD?

Accepted Answer

A)  three-month simple moving average 
B)  three-month weighted moving average (0.6, 0.3, 0.1) 
C)  three-month weighted moving average (0.5, 0.3, 0.2) 
D)  exponential smoothing (a = 0.3) 
A)  three-month simple moving average 
B)  three-month weighted moving average (0.6, 0.3, 0.1) 
C)  three-month weighted moving average (0.5, 0.3, 0.2) 
D)  exponential smoothing (a = 0.3)

The ________ variable is the variable that one wants to forecast.

Table 10.4 Month Actual Sales Tanuary 23 February 18 March 22 April 28 May 24 -Use the information in Table 10.4.Use the three-month moving average method to forecast sales for June.

Delphi forecasting refers to a change in the forces that have acted on demand in the past.

The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.

A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.

Which one of the following time series forecasting methods will generate the most accurate forecasts when demands have a consistent trend pattern?

________ is a method of incorporating a trend in an exponentially smoothed forecast.

Which one of the following is an example of causal forecasting technique?

The Acme Computer Company has recorded sales of one of its products for a six-week period: Week Sales 1 25 2 23 3 20 4 22 5 23 6 24 Using the three-week moving average method,forecast sales for week 7.

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Describe three popular measures of forecast accuracy.

When using linear regression for forecasting,the independent variable is the variable that one wants to forecast.

List three advantages and three disadvantages of the moving average forecasting model.

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

________ forecasts are produced by averaging independent forecasts based on different methods or data or both.

Which one of the following is an example of a time series forecasting technique?

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

The ________ variable is the variable that one wants to forecast.

Table 10.4 Month Actual Sales Tanuary 23 February 18 March 22 April 28 May 24 -Use the information in Table 10.4.Use the three-month moving average method to forecast sales for June.

Delphi forecasting refers to a change in the forces that have acted on demand in the past.

The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.

A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.

Which one of the following time series forecasting methods will generate the most accurate forecasts when demands have a consistent trend pattern?

________ is a method of incorporating a trend in an exponentially smoothed forecast.

Which one of the following is an example of causal forecasting technique?

The Acme Computer Company has recorded sales of one of its products for a six-week period: Week Sales 1 25 2 23 3 20 4 22 5 23 6 24 Using the three-week moving average method,forecast sales for week 7.

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Discuss some guidelines for the use of judgment to adjust the results of quad potato forecasts.

Describe three popular measures of forecast accuracy.

When using linear regression for forecasting,the independent variable is the variable that one wants to forecast.

List three advantages and three disadvantages of the moving average forecasting model.

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

________ forecasts are produced by averaging independent forecasts based on different methods or data or both.

Which one of the following is an example of a time series forecasting technique?

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