Question 1

The simple moving average forecasting technique is?

Accepted Answer

A)  Able to generate consistently perfect forecasts 
B)  Relatively easy to use 
C)  Relatively difficult to use 
D)  Rarely used due to its complexity 
A)  Able to generate consistently perfect forecasts 
B)  Relatively easy to use 
C)  Relatively difficult to use 
D)  Rarely used due to its complexity

Question 2

Chairman Cat Products produces cat trees that are sold by several large pet stores. They sold 190, 210, and 208 cat trees in January, February, and March, respectively. Assuming that the first forecast value (for January) is set to 190, what is the exponential smoothing forecast for May? Assume a smoothing constant value of 0.4.

Accepted Answer

A)  190 
B)  198 
C)  202 
D)  Cannot be determined from the information given 
A)  190 
B)  198 
C)  202 
D)  Cannot be determined from the information given

Question 3

A donut shop located at a popular beach experiencing demand that fluctuates with the tourist seasons is experiencing cyclical variation in demand.

Accepted Answer

A) True 
 B)False

Question 4

Forecast quality is likely to only impact inventory levels of finished goods, raw materials, and components.

Accepted Answer

A) True 
 B)False

Question 5

Modern customer demands include the following "rights" except?

Accepted Answer

A)  Right products 
B)  Right quantities 
C)  Right price 
D)  Customer demands include all of the "rights" listed (products, quantities, and price) 
A)  Right products 
B)  Right quantities 
C)  Right price 
D)  Customer demands include all of the "rights" listed (products, quantities, and price)

Question 6

All of the following may influence demand and should be considered when developing a forecast except?

Accepted Answer

A)  Economic conditions 
B)  New competition 
C)  Supplier quality 
D)  Emerging markets 
A)  Economic conditions 
B)  New competition 
C)  Supplier quality 
D)  Emerging markets

Question 7

When data available to a firm is too old to be useful, what type of forecasting technique should the firm consider?

Accepted Answer

A)  Quantitative 
B)  Qualitative 
C)  Qualified 
D)  Quantified 
A)  Quantitative 
B)  Qualitative 
C)  Qualified 
D)  Quantified

Question 8

In what situations might the use of a simple moving average be appropriate? Provide at least one example (hypothetical or otherwise).

Accepted Answer

A successful answer should not

Question 9

Using the average of recent historical demand to generate a forecast is referred to as what technique?

Accepted Answer

A)  Simple moving average 
B)  Weighted moving average 
C)  Exponential smoothing 
D)  Linear trend forecast 
A)  Simple moving average 
B)  Weighted moving average 
C)  Exponential smoothing 
D)  Linear trend forecast

Question 10

Which department within a firm uses demand forecasts to make capacity decisions (adding shifts, adding overtime, or purchasing new equipment)?

Accepted Answer

A)  Operations 
B)  Distribution 
C)  Marketing 
D)  Supply management 
A)  Operations 
B)  Distribution 
C)  Marketing 
D)  Supply management

Question 11

Describe why a forecaster may wish to use a weighted moving average forecast with more recent data weighted more heavily than older data. Provide at least one example (hypothetical or otherwise).

Accepted Answer

A successful answer should note that the

Question 12

The weighted moving average forecast tends to?

Accepted Answer

A)  Weight each period equally 
B)  Weight recent demand more lightly 
C)  Weight recent demand more heavily 
D)  Give each period a weight of zero 
A)  Weight each period equally 
B)  Weight recent demand more lightly 
C)  Weight recent demand more heavily 
D)  Give each period a weight of zero

Question 13

The exponential smoothing technique is?

Accepted Answer

A)  Rarely used due to its complexity 
B)  Rarely used due to its inaccuracy 
C)  Widely used due to its simplicity 
D)  Widely used due to its ability to generate perfect forecasts 
A)  Rarely used due to its complexity 
B)  Rarely used due to its inaccuracy 
C)  Widely used due to its simplicity 
D)  Widely used due to its ability to generate perfect forecasts

Question 14

A model when there are several independent variables that are linearly related to demand is?

Accepted Answer

A)  Linear trend forecast 
B)  Simple linear regression forecast 
C)  Multiple regression forecast 
D)  Exponential smoothing forecast 
A)  Linear trend forecast 
B)  Simple linear regression forecast 
C)  Multiple regression forecast 
D)  Exponential smoothing forecast

Question 15

If a trend line is given as Demand = 55 + 7.8(Time) then what is the predicted demand when Time equals 0?

Accepted Answer

A)  55 
B)  62.8 
C)  133 
D)  The predicted demand cannot be determined from the information given 
A)  55 
B)  62.8 
C)  133 
D)  The predicted demand cannot be determined from the information given

Question 16

In the weighted moving average forecast, weights must?

Accepted Answer

A)  Be non-negative 
B)  Sum to 1 
C)  Be non-negative and sum to 1 
D)  Be neither non-negative nor sum to 1 
A)  Be non-negative 
B)  Sum to 1 
C)  Be non-negative and sum to 1 
D)  Be neither non-negative nor sum to 1

Question 17

Demand patterns that occur every several years and are influenced by macroeconomic and political factors are referred to as?

Accepted Answer

A)  Trend 
B)  Seasonality 
C)  Cyclical 
D)  Random variation 
A)  Trend 
B)  Seasonality 
C)  Cyclical 
D)  Random variation

Question 18

The process that balances customer requirements with supply chain capabilities is referred to as?

Accepted Answer

A)  Supply chain management 
B)  Demand management 
C)  Supplier management 
D)  Production management 
A)  Supply chain management 
B)  Demand management 
C)  Supplier management 
D)  Production management

Question 19

With appropriate selection of weights, the weighted moving average forecasting technique is?

Accepted Answer

A)  More responsive to changes in the data than the simple moving average 
B)  Less responsive to changes in the data than the simple moving average 
C)  Neither more nor less responsive to changes in the data than the simple moving average 
D)  Cannot be compared to the simple moving average 
A)  More responsive to changes in the data than the simple moving average 
B)  Less responsive to changes in the data than the simple moving average 
C)  Neither more nor less responsive to changes in the data than the simple moving average 
D)  Cannot be compared to the simple moving average

Question 20

All of the following are approaches that are typically associated with demand management except?

Accepted Answer

A)  Discounting prices to increase demand during slow demand periods 
B)  Reservation systems 
C)  Having customers form waiting lines (queues) 
D)  Providing next-day delivery options 
A)  Discounting prices to increase demand during slow demand periods 
B)  Reservation systems 
C)  Having customers form waiting lines (queues) 
D)  Providing next-day delivery options

The simple moving average forecasting technique is?

A donut shop located at a popular beach experiencing demand that fluctuates with the tourist seasons is experiencing cyclical variation in demand.

Forecast quality is likely to only impact inventory levels of finished goods, raw materials, and components.

Modern customer demands include the following "rights" except?

All of the following may influence demand and should be considered when developing a forecast except?

When data available to a firm is too old to be useful, what type of forecasting technique should the firm consider?

In what situations might the use of a simple moving average be appropriate? Provide at least one example (hypothetical or otherwise).

Using the average of recent historical demand to generate a forecast is referred to as what technique?

Which department within a firm uses demand forecasts to make capacity decisions (adding shifts, adding overtime, or purchasing new equipment)?

Describe why a forecaster may wish to use a weighted moving average forecast with more recent data weighted more heavily than older data. Provide at least one example (hypothetical or otherwise).

The weighted moving average forecast tends to?

The exponential smoothing technique is?

A model when there are several independent variables that are linearly related to demand is?

If a trend line is given as Demand = 55 + 7.8(Time) then what is the predicted demand when Time equals 0?

In the weighted moving average forecast, weights must?

Demand patterns that occur every several years and are influenced by macroeconomic and political factors are referred to as?

The process that balances customer requirements with supply chain capabilities is referred to as?

With appropriate selection of weights, the weighted moving average forecasting technique is?

All of the following are approaches that are typically associated with demand management except?

Operations Management, Processes, and Supply Chain Management

Corporate Strategy, Performance, and Sustainability

Product Design and Development

Process Design and Capacity Management

Customer Relationships and Customer Service

Independent Demand Inventory Management

Material Flow Analysis and Facility Layouts

Supplement: Job Scheduling and Vehicle Routing

Lean Systems

Managing Customer and Work Flows

Managing Information Flowsmrp and Erp

Managing Projects

Six Sigma Quality Management

Supplement: Statistical Quality Control

Global Supply Management

Location, Logistics, and Product Returns

Integrating Processes Along the Supply Chain

Filters

Exam 6: Demand Management, Forecasting, and Aggregate Planning

The simple moving average forecasting technique is?

A donut shop located at a popular beach experiencing demand that fluctuates with the tourist seasons is experiencing cyclical variation in demand.

Forecast quality is likely to only impact inventory levels of finished goods, raw materials, and components.

Modern customer demands include the following "rights" except?

All of the following may influence demand and should be considered when developing a forecast except?

When data available to a firm is too old to be useful, what type of forecasting technique should the firm consider?

In what situations might the use of a simple moving average be appropriate? Provide at least one example (hypothetical or otherwise).

Using the average of recent historical demand to generate a forecast is referred to as what technique?

Which department within a firm uses demand forecasts to make capacity decisions (adding shifts, adding overtime, or purchasing new equipment)?

Describe why a forecaster may wish to use a weighted moving average forecast with more recent data weighted more heavily than older data. Provide at least one example (hypothetical or otherwise).

The weighted moving average forecast tends to?

The exponential smoothing technique is?

A model when there are several independent variables that are linearly related to demand is?

If a trend line is given as Demand = 55 + 7.8(Time) then what is the predicted demand when Time equals 0?

In the weighted moving average forecast, weights must?

Demand patterns that occur every several years and are influenced by macroeconomic and political factors are referred to as?

The process that balances customer requirements with supply chain capabilities is referred to as?

With appropriate selection of weights, the weighted moving average forecasting technique is?

All of the following are approaches that are typically associated with demand management except?

Operations Management, Processes, and Supply Chain Management

Corporate Strategy, Performance, and Sustainability

Product Design and Development

Process Design and Capacity Management

Customer Relationships and Customer Service

Independent Demand Inventory Management

Material Flow Analysis and Facility Layouts

Supplement: Job Scheduling and Vehicle Routing

Lean Systems

Managing Customer and Work Flows

Managing Information Flowsmrp and Erp

Managing Projects

Six Sigma Quality Management

Supplement: Statistical Quality Control

Global Supply Management

Location, Logistics, and Product Returns

Integrating Processes Along the Supply Chain

Filters