Exam 8: Demand Management and Forecasting

Introducing new products in a sequence that allows for an effective use of capacity is known as ________.

The practice of hotels and resorts offering off-season discounts for slow periods is a form of demand management.

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?

For an apparel manufacturer,ski jackets and swimwear are examples of ________ products.

The measure of forecasting error used in computing variance is known as ________.

What will be the forecast for the month of October using a 3-period moving average and weights of 0.2,0.3 and 0.5,if the demand during the months of May,June,July,August and September was 200,180,210,200 and 220 respectively? (The desire is to have the most recent data influence the forecast most strongly.)

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

A long-term,repetitive pattern in a time series that is often macroeconomic in nature is known as trend.

The seasonal index for Menchie's Landscaping services for the summer season was 1.35.Based on this information,what can be concluded about the demand for the landscaping services for the summer season?

The forecasting method which uses an iterative process in which individuals develop their own forecast and then share them among each other and again revise their forecast until a consensus is reached is

In measuring the forecast accuracy,bias is measured by the cumulative sum of forecast errors.

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?

The tendency to forecast either too high or too low is known as ________.

What is the Mean Absolute Deviation (MAD)if the sum of the absolute forecast error over 12 periods is 174?

Vitamix,a producer of high quality blenders which has a seasonal demand,sells the product through in-store demonstrations at other retail partner stores during the holiday season.During the rest of the year,they use company owned stores and their online website to sell the product.The company is using a practice called

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

Use the information below to answer the following question(s). The following table provides demand and forecast information for a specialty store's products which are particularly popular around Halloween. Period/ Quarter Demand Regression (De- seasonalized) Forecast Winter 13 80 90 Spring 240 198.6 Summer 300 307.1 Fall 440 415.7 Winter 14 400 524.3 Spring 720 632.9 Summer 700 741.4 Fall 880 850 -What is the seasonally adjusted forecast for Spring 2014?

When new products show a steady increase in sales,a low alpha value for the smoothing constant should be used in conjunction with the exponential smoothing technique in order to minimize forecast errors.

Removing the seasonal component from a historical demand (de-seasonalizing)can be accomplished by dividing each data point by its appropriate seasonal index.

For a retailer,ski jackets and snow shovels are counterseasonal products.