Question 1

The per period average of cumulative error is called

Accepted Answer

A)  cumulative forecast variation. 
B)  absolute error. 
C)  average error. 
D)  noise. 
A)  cumulative forecast variation. 
B)  absolute error. 
C)  average error. 
D)  noise. C

Question 2

A qualitative procedure used to develop a consensus forecast is known as

Accepted Answer

A)  exponential smoothing. 
B)  regression methods. 
C)  the Delphi technique. 
D)  naïve forecasting. 
A)  exponential smoothing. 
B)  regression methods. 
C)  the Delphi technique. 
D)  naïve forecasting. C

Question 3

Long-range qualitative forecasts are used to determine future demand for new products, markets, and customers.

Accepted Answer

A) True 
 B)False  True

Question 4

The larger the mean absolute deviation (MAD), the more accurate the forecast.

Accepted Answer

A) True 
 B)False

Question 5

A forecasting model has produced the following forecasts:   The mean absolute percentage deviation (MAPD) for the end of May is

Accepted Answer

A)  0.0250. 
B)  0.0583. 
C)  0.5830. 
D)  0.6670. 
A)  0.0250. 
B)  0.0583. 
C)  0.5830. 
D)  0.6670.

Question 6

Time series methods use historical data to predict future demand.

Accepted Answer

A) True 
 B)False

Question 7

A ___ is an up-and-down movement in demand that repeats itself over a lengthy time period of more than a year.

Accepted Answer

A)  trend 
B)  seasonal pattern 
C)  random variation 
D)  cycle 
A)  trend 
B)  seasonal pattern 
C)  random variation 
D)  cycle

Question 8

If forecast errors are normally distributed, then

Accepted Answer

A)  1 MAD = 1σ. 
B)  1 MAD ≈ 0.8 σ. 
C)  0.8 MAD ≈ 1σ. 
D)  1 MAD ≈ 1.96 σ. 
A)  1 MAD = 1σ. 
B)  1 MAD ≈ 0.8 σ. 
C)  0.8 MAD ≈ 1σ. 
D)  1 MAD ≈ 1.96 σ.

Question 9

One way to deal with the bullwhip effect is to develop and share the forecasts with other supply chain members.

Accepted Answer

A) True 
 B)False

Question 10

The smoothing constant, α, in the exponential smoothing forecast

Accepted Answer

A)  must always be a value greater than 1.0. 
B)  must always be a value less than 0.10. 
C)  must be a value between 0.0 and 1.0. 
D)  should be equal to the time frame for the forecast. 
A)  must always be a value greater than 1.0. 
B)  must always be a value less than 0.10. 
C)  must be a value between 0.0 and 1.0. 
D)  should be equal to the time frame for the forecast.

Question 11

Discuss the importance of accurate forecasting in supply chain management, quality management, and strategic planning.

Accepted Answer

Forecasts of product demand are a necess

Question 12

The Delphi method generates forecasts based on informed judgments and opinions from knowledgeable individuals.

Accepted Answer

A) True 
 B)False

Question 13

Forecast bias is measured by the per-period average of the sum of the forecast errors.

Accepted Answer

A) True 
 B)False

Question 14

A tracking signal is computed by

Accepted Answer

A)  multiplying the cumulative error by MAD. 
B)  multiplying the absolute error by MAD. 
C)  dividing MAD by the cumulative absolute error. 
D)  dividing the cumulative error by MAD. 
A)  multiplying the cumulative error by MAD. 
B)  multiplying the absolute error by MAD. 
C)  dividing MAD by the cumulative absolute error. 
D)  dividing the cumulative error by MAD.

Question 15

Forecast methods based on judgment, opinion, past experiences, or best guesses are known as ___ methods.

Accepted Answer

A)  quantitative 
B)  qualitative 
C)  time series 
D)  regression 
A)  quantitative 
B)  qualitative 
C)  time series 
D)  regression

Question 16

Continuous replenishment systems rely heavily on extremely accurate long-term forecasts.

Accepted Answer

A) True 
 B)False

Question 17

Linear regression relates two variables using a linear model.

Accepted Answer

A) True 
 B)False

Question 18

Because of ease of use and simplicity, exponential smoothing is preferred over smoothing average.

Accepted Answer

A) True 
 B)False

Question 19

Regression forecasting methods relate ___ to other factors that cause demand behaviour.

Accepted Answer

A)  supply 
B)  demand 
C)  time 
D)  money 
A)  supply 
B)  demand 
C)  time 
D)  money

Question 20

Explain how and why time series and regression forecasting methods differ.

Accepted Answer

Time series methods are statistical tech

The per period average of cumulative error is called

A qualitative procedure used to develop a consensus forecast is known as

Long-range qualitative forecasts are used to determine future demand for new products, markets, and customers.

The larger the mean absolute deviation (MAD), the more accurate the forecast.

A forecasting model has produced the following forecasts: The mean absolute percentage deviation (MAPD) for the end of May is

Time series methods use historical data to predict future demand.

A ___ is an up-and-down movement in demand that repeats itself over a lengthy time period of more than a year.

If forecast errors are normally distributed, then

One way to deal with the bullwhip effect is to develop and share the forecasts with other supply chain members.

The smoothing constant, α, in the exponential smoothing forecast

Discuss the importance of accurate forecasting in supply chain management, quality management, and strategic planning.

The Delphi method generates forecasts based on informed judgments and opinions from knowledgeable individuals.

Forecast bias is measured by the per-period average of the sum of the forecast errors.

A tracking signal is computed by

Forecast methods based on judgment, opinion, past experiences, or best guesses are known as ___ methods.

Continuous replenishment systems rely heavily on extremely accurate long-term forecasts.

Linear regression relates two variables using a linear model.

Because of ease of use and simplicity, exponential smoothing is preferred over smoothing average.

Regression forecasting methods relate ___ to other factors that cause demand behaviour.

Explain how and why time series and regression forecasting methods differ.

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Inventory Management

Sales and Operations Planning

Resource Planning

Lean Systems

Scheduling

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Exam 12: Forecasting

The per period average of cumulative error is called

A qualitative procedure used to develop a consensus forecast is known as

Long-range qualitative forecasts are used to determine future demand for new products, markets, and customers.

The larger the mean absolute deviation (MAD), the more accurate the forecast.

A forecasting model has produced the following forecasts: The mean absolute percentage deviation (MAPD) for the end of May is

Time series methods use historical data to predict future demand.

A ___ is an up-and-down movement in demand that repeats itself over a lengthy time period of more than a year.

If forecast errors are normally distributed, then

One way to deal with the bullwhip effect is to develop and share the forecasts with other supply chain members.

The smoothing constant, α, in the exponential smoothing forecast

Discuss the importance of accurate forecasting in supply chain management, quality management, and strategic planning.

The Delphi method generates forecasts based on informed judgments and opinions from knowledgeable individuals.

Forecast bias is measured by the per-period average of the sum of the forecast errors.

A tracking signal is computed by

Forecast methods based on judgment, opinion, past experiences, or best guesses are known as ___ methods.

Continuous replenishment systems rely heavily on extremely accurate long-term forecasts.

Linear regression relates two variables using a linear model.

Because of ease of use and simplicity, exponential smoothing is preferred over smoothing average.

Regression forecasting methods relate ___ to other factors that cause demand behaviour.

Explain how and why time series and regression forecasting methods differ.

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Inventory Management

Sales and Operations Planning

Resource Planning

Lean Systems

Scheduling

Filters