Question 1

The measure of forecasting error that tells the average error in a forecast is known as ________.

Accepted Answer

mean absolute deviation (MAD)

Question 2

What is the demand pattern that can be used to describe the sales of General Motor's mid-size sedan model car that shows a general fluctuation in sales from month to month?

Accepted Answer

A) Irregular component 
B) Trend 
C) Cyclical 
D) Seasonal movement 
A) Irregular component 
B) Trend 
C) Cyclical 
D) Seasonal movement A

Question 3

Which of the following is not a step in the forecasting process?

Accepted Answer

A) Identify the purpose for the forecast 
B) Determine the time horizon for the forecast 
C) Determine feasible capacity levels 
D) Select a forecasting technique 
A) Identify the purpose for the forecast 
B) Determine the time horizon for the forecast 
C) Determine feasible capacity levels 
D) Select a forecasting technique C

Question 4

Which forecasting method is commonly used by going to the market to get information for new product launches?

Accepted Answer

A) Delphi method 
B) String method 
C) Time series forecasting 
D) Grassroots forecasting 
A) Delphi method 
B) String method 
C) Time series forecasting 
D) Grassroots forecasting

Question 5

Menchie's Landscaping service routinely provides lawn fertilization services to their customers.It has been forecasted that they will be fertilizing 250 customer lawns in the upcoming season.Each lawn requires an average of 20 lbs.of fertilizer.What term can be used to describe the demand for the fertilizer?

Accepted Answer

A) Sporadic demand 
B) Independent demand 
C) Co-variance demand 
D) Dependent demand 
A) Sporadic demand 
B) Independent demand 
C) Co-variance demand 
D) Dependent demand

Question 6

What will be the forecast for the month of October using an exponential smoothing technique and a smoothing constant of 0.2,if the demand during the months of August and September was 200 and 220 respectively and the forecast for the month of August was 180?

Accepted Answer

A) 185.6 
B) 191.2 
C) 198.7 
D) 205.5 
A) 185.6 
B) 191.2 
C) 198.7 
D) 205.5

Question 7

In the case of positive bias,people tend to

Accepted Answer

A) overforecast. 
B) underforecast. 
C) be exact. 
D) be pessimictic. 
A) overforecast. 
B) underforecast. 
C) be exact. 
D) be pessimictic.

Question 8

The Fresh Express Beverage Company is interested in evaluating the effects of advertising spend on the sales of their products.Based on historical data,they develop the following equation which approximates this relationship: y = 2.5 + 0.02x,where y is the number of bottles of beverages sold measured in millions of units,and x = amount of money spent on advertising measured in millions of dollars.Based on this information,which of the following statements is correct?

Accepted Answer

A) Every additional million dollars spent on advertising will increase the beverage sales by 200,000 units. 
B) The Company will sell a minimum of 2.5 million units even if no money is spent on advertising. 
C) Every additional 20,000 dollars spent on advertising will increase the beverage sales by a million units. 
D) The number of units of beverage sold will decrease beyond a certain amount of money spent on advertising. 
A) Every additional million dollars spent on advertising will increase the beverage sales by 200,000 units. 
B) The Company will sell a minimum of 2.5 million units even if no money is spent on advertising. 
C) Every additional 20,000 dollars spent on advertising will increase the beverage sales by a million units. 
D) The number of units of beverage sold will decrease beyond a certain amount of money spent on advertising.

Question 9

Which of the following forecast error measures will help determine whether or not there is a bias in a forecast?

Accepted Answer

A) Forecast error 
B) Absolute deviation 
C) Square error 
D) Control error 
A) Forecast error 
B) Absolute deviation 
C) Square error 
D) Control error

Question 10

The bullwhip effect indicates that the variation in demand will be higher with the retailer as compared to the manufacturer in a supply chain.

Accepted Answer

A) True 
 B)False

Question 11

Forecasting techniques such as moving averages and exponential smoothing represent smoothed (averaged)values of the historical time series data.

Accepted Answer

A) True 
 B)False

Question 12

In the context of demand management,the loss and replacement of customers is known as ________.

Accepted Answer

The answer of In the context of demand management,the loss...

Question 13

A moving average forecast is more responsive to changes in the historical demand when a higher value of n is used-i.e. ,when more demand periods are used in computing the forecast.

Accepted Answer

A) True 
 B)False

Question 14

An advantage of the weighted moving average technique is that recent demand periods can be given more importance than older demand periods.

Accepted Answer

A) True 
 B)False

Question 15

An assertion about the future whose outcome you have not yet seen is called a ________.

Accepted Answer

The answer of An assertion about the future whose outcome...

Question 16

If a pattern appears like cycles or seasonality when a dependent variable is plotted against time,one should use time series analysis instead of regression analysis.

Accepted Answer

A) True 
 B)False

Question 17

In forecasting,what is the Mean Absolute Deviation (MAD)?

Accepted Answer

A) It is the difference between the forecast and actual demand. 
B) It is the average,absolute difference between the forecast and actual demand. 
C) It is the absolute error as a percentage of demand. 
D) It is the per-period average of cumulative error. 
A) It is the difference between the forecast and actual demand. 
B) It is the average,absolute difference between the forecast and actual demand. 
C) It is the absolute error as a percentage of demand. 
D) It is the per-period average of cumulative error.

Question 18

The Mean Absolute Deviation (MAD)is equal to the square root of the Mean Squared Error (MSE).

Accepted Answer

A) True 
 B)False

Question 19

Seasonal indices can be used to de-seasonalize demand or incorporate seasonality into a forecast.

Accepted Answer

A) True 
 B)False

Question 20

The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.

Accepted Answer

A) True 
 B)False

The measure of forecasting error that tells the average error in a forecast is known as ________.

What is the demand pattern that can be used to describe the sales of General Motor's mid-size sedan model car that shows a general fluctuation in sales from month to month?

Which of the following is not a step in the forecasting process?

Which forecasting method is commonly used by going to the market to get information for new product launches?

What will be the forecast for the month of October using an exponential smoothing technique and a smoothing constant of 0.2,if the demand during the months of August and September was 200 and 220 respectively and the forecast for the month of August was 180?

In the case of positive bias,people tend to

Which of the following forecast error measures will help determine whether or not there is a bias in a forecast?

The bullwhip effect indicates that the variation in demand will be higher with the retailer as compared to the manufacturer in a supply chain.

Forecasting techniques such as moving averages and exponential smoothing represent smoothed (averaged)values of the historical time series data.

In the context of demand management,the loss and replacement of customers is known as ________.

A moving average forecast is more responsive to changes in the historical demand when a higher value of n is used-i.e. ,when more demand periods are used in computing the forecast.

An advantage of the weighted moving average technique is that recent demand periods can be given more importance than older demand periods.

An assertion about the future whose outcome you have not yet seen is called a ________.

If a pattern appears like cycles or seasonality when a dependent variable is plotted against time,one should use time series analysis instead of regression analysis.

In forecasting,what is the Mean Absolute Deviation (MAD)?

The Mean Absolute Deviation (MAD)is equal to the square root of the Mean Squared Error (MSE).

Seasonal indices can be used to de-seasonalize demand or incorporate seasonality into a forecast.

The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Strategic Sourcing

Supplier Management

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

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Exam 8: Demand Management and Forecasting

The measure of forecasting error that tells the average error in a forecast is known as ________.

What is the demand pattern that can be used to describe the sales of General Motor's mid-size sedan model car that shows a general fluctuation in sales from month to month?

Which of the following is not a step in the forecasting process?

Which forecasting method is commonly used by going to the market to get information for new product launches?

What will be the forecast for the month of October using an exponential smoothing technique and a smoothing constant of 0.2,if the demand during the months of August and September was 200 and 220 respectively and the forecast for the month of August was 180?

In the case of positive bias,people tend to

Which of the following forecast error measures will help determine whether or not there is a bias in a forecast?

The bullwhip effect indicates that the variation in demand will be higher with the retailer as compared to the manufacturer in a supply chain.

Forecasting techniques such as moving averages and exponential smoothing represent smoothed (averaged)values of the historical time series data.

In the context of demand management,the loss and replacement of customers is known as ________.

A moving average forecast is more responsive to changes in the historical demand when a higher value of n is used-i.e. ,when more demand periods are used in computing the forecast.

An advantage of the weighted moving average technique is that recent demand periods can be given more importance than older demand periods.

An assertion about the future whose outcome you have not yet seen is called a ________.

If a pattern appears like cycles or seasonality when a dependent variable is plotted against time,one should use time series analysis instead of regression analysis.

In forecasting,what is the Mean Absolute Deviation (MAD)?

The Mean Absolute Deviation (MAD)is equal to the square root of the Mean Squared Error (MSE).

Seasonal indices can be used to de-seasonalize demand or incorporate seasonality into a forecast.

The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Strategic Sourcing

Supplier Management

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

New Section

Filters