Question 1

What is a tracking signal? How is it calculated? Explain the connection between adaptive smoothing and tracking signals.

Accepted Answer

A tracking signal is a measure of how we

Question 2

So called cyclical patterns involving gradual increases or decreases in demand over long periods of time cannot be predicted with forecasting.

Accepted Answer

A) True 
 B)False

Question 3

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 exponential smoothing method,with alpha equal to 0.2,what is the forecasted demand for November? Use an initial value for the forecast (July)equal to 277 units.

Accepted Answer

A)  less than or equal to 260 units 
B)  greater than 260 but less than or equal to 275 units 
C)  greater than 275 but less than or equal to 285 units 
D)  more than 285 units 
A)  less than or equal to 260 units 
B)  greater than 260 but less than or equal to 275 units 
C)  greater than 275 but less than or equal to 285 units 
D)  more than 285 units

Question 4

Define and discuss market research as it applies to forecasting.

Accepted Answer

Market research is a systematic approach

Question 5

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A)  You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences. 
B)  The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series. 
C)  The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
D)  In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average. 
A)  You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences. 
B)  The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series. 
C)  The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
D)  In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average.

Question 6

Explain the coefficient of determination.

Accepted Answer

The coefficient of determination indicat

Question 7

Describe the term collaborative planning,forecasting,and replenishment (CPFR).

Accepted Answer

Collaborative planning,forecasting,and r

Question 8

Discuss two guidelines that help when searching for the best time series models.

Accepted Answer

First,for projections of more stable dem

Question 9

Which of the following is an example of a judgmental forecasting technique?

Accepted Answer

A)  market research 
B)  multiplicative seasonal method 
C)  simple moving average 
D)  linear regression 
A)  market research 
B)  multiplicative seasonal method 
C)  simple moving average 
D)  linear regression

Question 10

When a trend is present,exponential smoothing always will be below or above the actual demand.

Accepted Answer

A) True 
 B)False

Question 11

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.Forecast the demand for the machine for month 7,using the three-month moving average method.

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 12

Forecasting capacity needs is not generally considered important for service operations due to not having inventory.

Accepted Answer

A) True 
 B)False

Question 13

Aggregation is the act of clustering several similar products or services.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

Accepted Answer

The answer of A(n)________ forecast is a time-series method whereby...

Question 15

Promotional campaigns are designed to increase sales with creative pricing.

Accepted Answer

A) True 
 B)False

Question 16

A quantitative approach is applied when using the Delphi forecasting method.

Accepted Answer

A) True 
 B)False

Question 17

A tracking signal greater than zero and a mean absolute deviation greater than zero imply that the forecast has

Accepted Answer

A)  no bias and no variability of forecast error. 
B)  a nonzero amount of bias and a nonzero amount of forecast error variability. 
C)  no bias and a nonzero amount of forecast error variability. 
D)  a nonzero amount of bias and no variability of forecast error. 
A)  no bias and no variability of forecast error. 
B)  a nonzero amount of bias and a nonzero amount of forecast error variability. 
C)  no bias and a nonzero amount of forecast error variability. 
D)  a nonzero amount of bias and no variability of forecast error.

Question 18

Doctors,dentists,lawyers,and automobile repair shops are examples of service providers that use appointment systems.

Accepted Answer

A) True 
 B)False

Question 19

Table 10.3
 $$\begin{array} { | c | c | } 
\hline \text { Week } & \begin{array} { c } 
\text { Patient } \
\text { Arrivals }
\end{array} \
\hline 1 & 401 \
2 & 380 \
3 & 411 \
4 & 384 \
\hline
\end{array}$$
-Use the information in Table 10.3.If the actual number of patients is 415 in week 5,what is the forecast for week 6 using a three-week moving average forecast?

Accepted Answer

A)  less than or equal to 390 
B)  greater than 390 but less than or equal to 398 
C)  greater than 398 but less than or equal to 406 
D)  greater than 406 
A)  less than or equal to 390 
B)  greater than 390 but less than or equal to 398 
C)  greater than 398 but less than or equal to 406 
D)  greater than 406

Question 20

Why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

Accepted Answer

More accurate forecasts are ob

Exam 10: Managing Demand and Forecasting

What is a tracking signal? How is it calculated? Explain the connection between adaptive smoothing and tracking signals.

So called cyclical patterns involving gradual increases or decreases in demand over long periods of time cannot be predicted with forecasting.

Table 10.5 Month Demand (Units) July 240 August 310 September 280 October 250 -Use the information in Table 10.5.Using the exponential smoothing method,with alpha equal to 0.2,what is the forecasted demand for November? Use an initial value for the forecast (July)equal to 277 units.

Define and discuss market research as it applies to forecasting.

Which one of the following statements about forecasting is FALSE?

Explain the coefficient of determination.

Describe the term collaborative planning,forecasting,and replenishment (CPFR).

Discuss two guidelines that help when searching for the best time series models.

Which of the following is an example of a judgmental forecasting technique?

When a trend is present,exponential smoothing always will be below or above the actual demand.

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.Forecast the demand for the machine for month 7,using the three-month moving average method.

Forecasting capacity needs is not generally considered important for service operations due to not having inventory.

Aggregation is the act of clustering several similar products or services.

A(n)________ forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

Promotional campaigns are designed to increase sales with creative pricing.

A quantitative approach is applied when using the Delphi forecasting method.

A tracking signal greater than zero and a mean absolute deviation greater than zero imply that the forecast has

Doctors,dentists,lawyers,and automobile repair shops are examples of service providers that use appointment systems.

Table 10.3 Week Patient Arrivals 1 401 2 380 3 411 4 384 -Use the information in Table 10.3.If the actual number of patients is 415 in week 5,what is the forecast for week 6 using a three-week moving average forecast?

Why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

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