Question 1

What important assumption is made about statistical (quantitative) forecasting methods?

Accepted Answer

A)  the past is a valid indicator of the future 
B)  demand trend is seldom linear 
C)  seasonal variations are small 
D)  random variations are small 
E)  all of the above 
A)  the past is a valid indicator of the future 
B)  demand trend is seldom linear 
C)  seasonal variations are small 
D)  random variations are small 
E)  all of the above A

Question 2

Which of the following is NOT a component of a demand pattern?

Accepted Answer

A)  trend 
B)  standard deviation 
C)  seasonal variation 
D)  random variation 
E)  all of the above are components of a demand pattern 
A)  trend 
B)  standard deviation 
C)  seasonal variation 
D)  random variation 
E)  all of the above are components of a demand pattern B

Question 3

Forecasts are far more accurate for which of the following?

Accepted Answer

A)  Short term 
B)  Individual items 
C)  Product families 
D)  End use components 
A)  Short term 
B)  Individual items 
C)  Product families 
D)  End use components A

Question 4

Which of the following is NOT a source of demand?

Accepted Answer

A)  Internal customers 
B)  External customers 
C)  Stockholders 
D)  Spare parts 
A)  Internal customers 
B)  External customers 
C)  Stockholders 
D)  Spare parts

Question 5

Which of the following statements is best statement about forecasting?
I. It must be done by all who wish to meet the demands of the future.
II. Companies who make to order to NOT have to forecast.

Accepted Answer

A)  I and II are true 
B)  I only is true 
C)  II only is true 
D)  neither I nor II are true 
A)  I and II are true 
B)  I only is true 
C)  II only is true 
D)  neither I nor II are true

Question 6

Select the one best answer from the following:

Accepted Answer

A)  the mean absolute deviation can be used as a measure of forecast error 
B)  usually forecast error is distributed normally about the average demand 
C)  in a normal distribution the error will be within 1 MAD of the average about 60% of the time 
D)  all the above are true 
E)  none of the above is true 
A)  the mean absolute deviation can be used as a measure of forecast error 
B)  usually forecast error is distributed normally about the average demand 
C)  in a normal distribution the error will be within 1 MAD of the average about 60% of the time 
D)  all the above are true 
E)  none of the above is true

Question 7

A forecasting technique that takes the average demand for some past number of periods is called:

Accepted Answer

A)  trend time analysis 
B)  moving average 
C)  exponential smoothing 
D)  none of the above 
E)  all of the above 
A)  trend time analysis 
B)  moving average 
C)  exponential smoothing 
D)  none of the above 
E)  all of the above

Question 8

Given this product tree which item(s) should be forecast?

Accepted Answer

A)  only A 
B)  A, B and C 
C)  D and E 
D)  B, C, D, and E 
E)  all items should be forecast 
A)  only A 
B)  A, B and C 
C)  D and E 
D)  B, C, D, and E 
E)  all items should be forecast

Question 9

If the February demand for a product is 5,000 units and the seasonal index for February is 0.75, what is the deseasonalized February demand?

Accepted Answer

A)  3,750 
B)  6,667 
C)  8,750 
D)  10,000 
E)  15,000 
A)  3,750 
B)  6,667 
C)  8,750 
D)  10,000 
E)  15,000

Question 10

Which of the following is NOT true?

Accepted Answer

A)  number of orders shipped is a good measure of demand for an item 
B)  circumstances relating to historical data should be recorded 
C)  demand for different groups should be recorded separately 
D)  none of the above is true 
A)  number of orders shipped is a good measure of demand for an item 
B)  circumstances relating to historical data should be recorded 
C)  demand for different groups should be recorded separately 
D)  none of the above is true

Question 11

Forecasts are far more accurate for which of the following?

Accepted Answer

A)  Short term 
B)  Individual items 
C)  Product families 
D)  End use components 
A)  Short term 
B)  Individual items 
C)  Product families 
D)  End use components

Question 12

Which of the following is the best statement about the general principles of forecasting?

Accepted Answer

A)  forecasts are more accurate for larger groups of items 
B)  forecasts are more accurate for nearer periods of time 
C)  every forecast should include an estimate of error 
D)  all of the above are general principles of forecasting 
E)  none of the above is a general principle of forecasting 
A)  forecasts are more accurate for larger groups of items 
B)  forecasts are more accurate for nearer periods of time 
C)  every forecast should include an estimate of error 
D)  all of the above are general principles of forecasting 
E)  none of the above is a general principle of forecasting

Question 13

When the demand for one item can be used to forecast the demand for another item, the demand for the first item is called which of the following?

Accepted Answer

A)  a seasonal index 
B)  a leading indicator 
C)  a forward commodity 
D)  a demand manager 
A)  a seasonal index 
B)  a leading indicator 
C)  a forward commodity 
D)  a demand manager

Question 14

Select the one best answer from the following:

Accepted Answer

A)  forecasts do not need to be tracked 
B)  forecast error does not need to be measured 
C)  when actual demand exceeds a reasonable error, it should be investigated to discover the cause of the error 
D)  all the above are true 
E)  none of the above is true 
A)  forecasts do not need to be tracked 
B)  forecast error does not need to be measured 
C)  when actual demand exceeds a reasonable error, it should be investigated to discover the cause of the error 
D)  all the above are true 
E)  none of the above is true

Question 15

Forecast error will be caused by:

Accepted Answer

A)  random variation from the average demand 
B)  errors in forecasting average demand 
C)  differences in lead times 
D)  a and b above 
E)  none of the above 
A)  random variation from the average demand 
B)  errors in forecasting average demand 
C)  differences in lead times 
D)  a and b above 
E)  none of the above

Question 16

Which of the following is good for short-range forecasts, can detect trends, but lags the trend?

Accepted Answer

A)  Exponential smoothing 
B)  Stable forecasting 
C)  Forecast smoothing 
D)  Delphi technique 
A)  Exponential smoothing 
B)  Stable forecasting 
C)  Forecast smoothing 
D)  Delphi technique

Question 17

Which of the following methods can be used to forecast the demand for a NEW product?

Accepted Answer

A)  equation fitting 
B)  moving averages 
C)  qualitative techniques 
D)  all of the above 
E)  none of the above 
A)  equation fitting 
B)  moving averages 
C)  qualitative techniques 
D)  all of the above 
E)  none of the above

Question 18

Select the one best answer from the following:

Accepted Answer

A)  demand fluctuations that depend on the time of the year, week or day are called seasonality 
B)  The seasonal index is an estimate of how much the demand during the season will be above or below the average demand 
C)  seasonality ALWAYS occurs in summer, winter, spring and fall 
D)  a and b are true 
E)  b and c are true 
A)  demand fluctuations that depend on the time of the year, week or day are called seasonality 
B)  The seasonal index is an estimate of how much the demand during the season will be above or below the average demand 
C)  seasonality ALWAYS occurs in summer, winter, spring and fall 
D)  a and b are true 
E)  b and c are true

Question 19

Which of the following statements is best?

Accepted Answer

A)  dependent demand items should be forecast 
B)  a forecast for sales next week will not be as accurate as for a year from now 
C)  forecasts for families of products should be built up from individual product forecasts 
D)  all of the above are true 
E)  none of the above is true 
A)  dependent demand items should be forecast 
B)  a forecast for sales next week will not be as accurate as for a year from now 
C)  forecasts for families of products should be built up from individual product forecasts 
D)  all of the above are true 
E)  none of the above is true

Question 20

Select the one best answer from the following:

Accepted Answer

A)  deseasonalized data should be used for forecasting 
B)  seasonalize the base forecast to predict actual demand for future periods 
C)  actual sales should only be compared on a month-to-month basis 
D)  a and b are best 
E)  b and c are best 
A)  deseasonalized data should be used for forecasting 
B)  seasonalize the base forecast to predict actual demand for future periods 
C)  actual sales should only be compared on a month-to-month basis 
D)  a and b are best 
E)  b and c are best

What important assumption is made about statistical (quantitative) forecasting methods?

Which of the following is NOT a component of a demand pattern?

Forecasts are far more accurate for which of the following?

Which of the following is NOT a source of demand?

Which of the following statements is best statement about forecasting? I. It must be done by all who wish to meet the demands of the future. II. Companies who make to order to NOT have to forecast.

Select the one best answer from the following:

A forecasting technique that takes the average demand for some past number of periods is called:

Given this product tree which item(s) should be forecast?

If the February demand for a product is 5,000 units and the seasonal index for February is 0.75, what is the deseasonalized February demand?

Which of the following is NOT true?

Forecasts are far more accurate for which of the following?

Which of the following is the best statement about the general principles of forecasting?

When the demand for one item can be used to forecast the demand for another item, the demand for the first item is called which of the following?

Select the one best answer from the following:

Forecast error will be caused by:

Which of the following is good for short-range forecasts, can detect trends, but lags the trend?

Which of the following methods can be used to forecast the demand for a NEW product?

Select the one best answer from the following:

Which of the following statements is best?

Select the one best answer from the following:

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Inventory Fundamentals

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters

Exam 8: Forecasting

What important assumption is made about statistical (quantitative) forecasting methods?

Which of the following is NOT a component of a demand pattern?

Forecasts are far more accurate for which of the following?

Which of the following is NOT a source of demand?

Which of the following statements is best statement about forecasting? I. It must be done by all who wish to meet the demands of the future. II. Companies who make to order to NOT have to forecast.

Select the one best answer from the following:

A forecasting technique that takes the average demand for some past number of periods is called:

Given this product tree which item(s) should be forecast?

If the February demand for a product is 5,000 units and the seasonal index for February is 0.75, what is the deseasonalized February demand?

Which of the following is NOT true?

Forecasts are far more accurate for which of the following?

Which of the following is the best statement about the general principles of forecasting?

When the demand for one item can be used to forecast the demand for another item, the demand for the first item is called which of the following?

Select the one best answer from the following:

Forecast error will be caused by:

Which of the following is good for short-range forecasts, can detect trends, but lags the trend?

Which of the following methods can be used to forecast the demand for a NEW product?

Select the one best answer from the following:

Which of the following statements is best?

Select the one best answer from the following:

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Inventory Fundamentals

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters