Question 1

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

Accepted Answer

Trend-adju

Question 2

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.Use the weighted moving average method to calculate the forecast for month 7.The weights are 0.50,0.30,and 0.20,where 0.50 refers to the most recent demand.

Accepted Answer

A)  less than or equal to 56 
B)  greater than 56 but less than or equal to 58 
C)  greater than 58 but less than or equal to 61 
D)  greater than 61 
A)  less than or equal to 56 
B)  greater than 56 but less than or equal to 58 
C)  greater than 58 but less than or equal to 61 
D)  greater than 61

Question 3

The owner of the Crossed Connections electronic appliance repair shop is enjoying increasing demand for her services.Total weekly demand,measured in standard labor hours,has been increasing.The owner uses trend-adjusted exponential smoothing to make forecasts for the following week so that she can plan work schedules and staffing levels.She has the following data to prepare her forecast:
At?? = 100 hours ? = 0.30
Tt?? = 10 hours ? = 0.10
Dt = 120 hours
Assuming she is now at the end of week t,what is the forecast for week t + 1?

Accepted Answer

A)  less than or equal to 114 hours 
B)  greater than 114 hours but less than or equal to 118 hours 
C)  greater than 118 hours but less than or equal to 122 hours 
D)  greater than 122 hours 
A)  less than or equal to 114 hours 
B)  greater than 114 hours but less than or equal to 118 hours 
C)  greater than 118 hours but less than or equal to 122 hours 
D)  greater than 122 hours

Question 4

What is the difference between mean absolute deviation (MAD)and mean squared error (MSE)?

Accepted Answer

Both MAD and MSE are measurements of the

Question 5

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series.List and briefly describe the five basic patterns of most demand time series.

Accepted Answer

1.horizontal: fluctuation of data around

Question 6

It is now near the end of May and you must prepare a forecast for June for a certain product.The forecast for May was 900 units.The actual demand for May was 1000 units.You are using the exponential smoothing method with ? = 0.20.The forecast for June is

Accepted Answer

A)  less than 925 units. 
B)  greater than or equal to 925 units but less than 950 units. 
C)  greater than or equal to 950 units but less than 1000 units. 
D)  greater than or equal to 1000 units. 
A)  less than 925 units. 
B)  greater than or equal to 925 units but less than 950 units. 
C)  greater than or equal to 950 units but less than 1000 units. 
D)  greater than or equal to 1000 units.

Question 7

A regression is run on data yielding the following information: a = 10.2 ,b = -0.8 ,the coefficient of determination = 0.16.Determine the coefficient of linear correlation.

Accepted Answer

r = coefficient of l

Question 8

________ is the prediction of future events used for planning purposes.

Accepted Answer

The answer of ________ is the prediction of future events...

Question 9

________ is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

Accepted Answer

The answer of ________ is a causal method of forecasting...

Question 10

What is a time-series forecasting model?

Accepted Answer

A time series forecasting mode

Question 11

What is focus forecasting?

Accepted Answer

A method of forecasting that s

Question 12

Table 10.2
The manager of a pizza shop must forecast weekly demand for special pizzas
so that he can order pizza shells weekly. Recent demand has been:
 $$\begin{array} { | c | c | } 
\hline \text { Week } & \begin{array} { c } 
\text { No. Special } \
\text { Pizzas }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 53 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Demand for a new five-inch color TV during the last six periods has been as follows:
$$\begin{array} { | c | c | } 
\hline \text { Period } & \begin{array} { c } 
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 109 \
2 & 110 \
3 & 103 \
4 & 170 \
5 & 81 \
6 & 130 \
\hline
\end{array}$$
What is the forecast for period 7 if the company uses the simple moving average method with n = 4?

Accepted Answer

A)  less than or equal to 115 
B)  greater than 115 but less than or equal to 120 
C)  greater than 120 but less than or equal to 125 
D)  greater than 125 
A)  less than or equal to 115 
B)  greater than 115 but less than or equal to 120 
C)  greater than 120 but less than or equal to 125 
D)  greater than 125

Question 13

Explain the coefficient of linear correlation.

Accepted Answer

The coefficient indicates how

Question 14

An independent variable is the measure or quantity being forecast in linear regression analysis.

Accepted Answer

A) True 
 B)False

Question 15

What is time series analysis?

Accepted Answer

A statistical approach that re

Question 16

Briefly describe what the causal method of forecasting is.

Accepted Answer

A quantitative metho

Question 17

When the underlying mean of a time series changes frequently but there is no trend,cyclical,or seasonal influence,

Accepted Answer

A)  a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3. 
B)  a simple moving average forecast with n = 3 should outperform a simple moving average forecast with n = 20. 
C)  a simple moving average forecast with n = 20 should perform about the same as a simple moving average forecast with n = 3. 
D)  an exponential smoothing forecast with alpha = 0.01 should outperform a exponential smoothing forecast with alpha = 0.30. 
A)  a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3. 
B)  a simple moving average forecast with n = 3 should outperform a simple moving average forecast with n = 20. 
C)  a simple moving average forecast with n = 20 should perform about the same as a simple moving average forecast with n = 3. 
D)  an exponential smoothing forecast with alpha = 0.01 should outperform a exponential smoothing forecast with alpha = 0.30.

Question 18

The Delphi method of forecasting is useful when

Accepted Answer

A)  judgment and opinion are the only bases for making informed projections. 
B)  a systematic approach to creating and testing hypotheses is needed and the data are usually gathered by sending a questionnaire to consumers. 
C)  historical data are available and the relationship between the factor to be forecast and other external or internal factors can be identified. 
D)  historical data is available and the best basis for making projections is to use past demand patterns. 
A)  judgment and opinion are the only bases for making informed projections. 
B)  a systematic approach to creating and testing hypotheses is needed and the data are usually gathered by sending a questionnaire to consumers. 
C)  historical data are available and the relationship between the factor to be forecast and other external or internal factors can be identified. 
D)  historical data is available and the best basis for making projections is to use past demand patterns.

Question 19

Judgment methods of forecasting should never be used with quantitative forecasting methods.

Accepted Answer

A) True 
 B)False

Question 20

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

Accepted Answer

A) True 
 B)False

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

What is the difference between mean absolute deviation (MAD)and mean squared error (MSE)?

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series.List and briefly describe the five basic patterns of most demand time series.

It is now near the end of May and you must prepare a forecast for June for a certain product.The forecast for May was 900 units.The actual demand for May was 1000 units.You are using the exponential smoothing method with ? = 0.20.The forecast for June is

A regression is run on data yielding the following information: a = 10.2 ,b = -0.8 ,the coefficient of determination = 0.16.Determine the coefficient of linear correlation.

________ is the prediction of future events used for planning purposes.

________ is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

What is a time-series forecasting model?

What is focus forecasting?

Explain the coefficient of linear correlation.

An independent variable is the measure or quantity being forecast in linear regression analysis.

What is time series analysis?

Briefly describe what the causal method of forecasting is.

When the underlying mean of a time series changes frequently but there is no trend,cyclical,or seasonal influence,

The Delphi method of forecasting is useful when

Judgment methods of forecasting should never be used with quantitative forecasting methods.

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

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

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

What is the difference between mean absolute deviation (MAD)and mean squared error (MSE)?

Repeated observations of demand for a product or service in their order of occurrence form a pattern known as time series.List and briefly describe the five basic patterns of most demand time series.

It is now near the end of May and you must prepare a forecast for June for a certain product.The forecast for May was 900 units.The actual demand for May was 1000 units.You are using the exponential smoothing method with ? = 0.20.The forecast for June is

A regression is run on data yielding the following information: a = 10.2 ,b = -0.8 ,the coefficient of determination = 0.16.Determine the coefficient of linear correlation.

________ is the prediction of future events used for planning purposes.

________ is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

What is a time-series forecasting model?

What is focus forecasting?

Explain the coefficient of linear correlation.

An independent variable is the measure or quantity being forecast in linear regression analysis.

What is time series analysis?

Briefly describe what the causal method of forecasting is.

When the underlying mean of a time series changes frequently but there is no trend,cyclical,or seasonal influence,

The Delphi method of forecasting is useful when

Judgment methods of forecasting should never be used with quantitative forecasting methods.

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

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