Question 1

The two general approaches to forecasting are

Accepted Answer

A)  qualitative and quantitative 
B)  mathematical and statistical 
C)  judgmental and qualitative 
D)  historical and associative 
E)  judgmental and associative 
A)  qualitative and quantitative 
B)  mathematical and statistical 
C)  judgmental and qualitative 
D)  historical and associative 
E)  judgmental and associative A

Question 2

A naïve forecast for September sales of a product would be equal to the forecast for August.

Accepted Answer

A) True 
 B)False  False

Question 3

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

Accepted Answer

A) True 
 B)False  True

Question 4

Which time-series model uses past forecasts and past demand data to generate a new forecast?

Accepted Answer

A)  naive 
B)  moving average 
C)  weighted moving average 
D)  exponential smoothing 
E)  regression analysis 
A)  naive 
B)  moving average 
C)  weighted moving average 
D)  exponential smoothing 
E)  regression analysis

Question 5

Which of the following is not present in a time series?

Accepted Answer

A)  seasonality 
B)  operational variations 
C)  trend 
D)  cycles 
E)  random variations 
A)  seasonality 
B)  operational variations 
C)  trend 
D)  cycles 
E)  random variations

Question 6

In trend projection, the trend component is the slope of the regression equation.

Accepted Answer

A) True 
 B)False

Question 7

Use exponential smoothing with trend adjustment to forecast deliveries for period 10. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200.
 $$\begin{array} { | c | c | } 
\hline &\text { Actual }\
\underline { \text { Period } } & \underline { \text { Detual } } \
\hline 1 & 200 \
\hline 2 & 212 \
\hline 3 & 214 \
\hline 4 & 222 \
\hline 5 & 236 \
\hline 6 & 221 \
\hline 7 & 240 \
\hline 8 & 244 \
\hline 9 & 250 \
\hline 10 & 266 \
\hline
\end{array}$$

Accepted Answer

The answer of Use exponential smoothing with trend adjustment to...

Question 8

What are the realities of forecasting that companies face?

Accepted Answer

First, forecasts are seldom perfect. Sec

Question 9

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August?

Accepted Answer

A)  2400 
B)  2511 
C)  2067 
D)  3767 
E)  1622 
A)  2400 
B)  2511 
C)  2067 
D)  3767 
E)  1622

Question 10

Technological forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators.

Accepted Answer

A) True 
 B)False

Question 11

The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate

Accepted Answer

A)  qualitative methods 
B)  adaptive smoothing 
C)  slope 
D)  bias 
E)  trend projection 
A)  qualitative methods 
B)  adaptive smoothing 
C)  slope 
D)  bias 
E)  trend projection

Question 12

What are the differences between quantitative and qualitative forecasting methods?

Accepted Answer

Quantitative methods use mathematical mo

Question 13

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is

Accepted Answer

A)  2 
B)  -10 
C)  3.5 
D)  9 
E)  10.5 
A)  2 
B)  -10 
C)  3.5 
D)  9 
E)  10.5

Question 14

Demand cycles for individual products can be driven by product life cycles.

Accepted Answer

A) True 
 B)False

Question 15

Forecasts are usually classified by time horizon into three categories

Accepted Answer

A)  short-range, medium-range, and long-range 
B)  finance/accounting, marketing, and operations 
C)  strategic, tactical, and operational 
D)  exponential smoothing, regression, and time series 
E)  departmental, organizational, and industrial 
A)  short-range, medium-range, and long-range 
B)  finance/accounting, marketing, and operations 
C)  strategic, tactical, and operational 
D)  exponential smoothing, regression, and time series 
E)  departmental, organizational, and industrial

Question 16

Distinguish between a moving average model and an exponential smoothing model.

Accepted Answer

Exponential smoothing is a weighted movi

Question 17

What is the key difference between weighted moving average and simple moving average approaches to forecasting?

Accepted Answer

Simple moving averages are useful where

Question 18

Time-series data may exhibit which of the following behaviors?

Accepted Answer

A)  trend 
B)  random variations 
C)  seasonality 
D)  cycles 
E)  They may exhibit all of the above. 
A)  trend 
B)  random variations 
C)  seasonality 
D)  cycles 
E)  They may exhibit all of the above.

Question 19

The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product.

Accepted Answer

A) True 
 B)False

Question 20

In time series, which of the following cannot be predicted?

Accepted Answer

A)  large increases in demand 
B)  cycles 
C)  seasonal fluctuations 
D)  random fluctuations 
E)  large decreases in demand 
A)  large increases in demand 
B)  cycles 
C)  seasonal fluctuations 
D)  random fluctuations 
E)  large decreases in demand

Exam 4: Forecasting

The two general approaches to forecasting are

A naïve forecast for September sales of a product would be equal to the forecast for August.

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

Which time-series model uses past forecasts and past demand data to generate a new forecast?

Which of the following is not present in a time series?

In trend projection, the trend component is the slope of the regression equation.

Use exponential smoothing with trend adjustment to forecast deliveries for period 10. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200. Actual 1 200 2 212 3 214 4 222 5 236 6 221 7 240 8 244 9 250 10 266

What are the realities of forecasting that companies face?

Technological forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators.

The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate

What are the differences between quantitative and qualitative forecasting methods?

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is

Demand cycles for individual products can be driven by product life cycles.

Forecasts are usually classified by time horizon into three categories

Distinguish between a moving average model and an exponential smoothing model.

What is the key difference between weighted moving average and simple moving average approaches to forecasting?

Time-series data may exhibit which of the following behaviors?

The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product.

In time series, which of the following cannot be predicted?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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