Question 1

Simulation forecasting methods imitate the consumer choices that give rise to demand to arrive at a forecast.

Accepted Answer

A) True 
 B)False

Question 2

Mature products with stable demand are usually the most difficult to forecast.

Accepted Answer

A) True 
 B)False

Question 3

Forecasts are always wrong and therefore

Accepted Answer

A)  should include both the expected value of the forecast and a measure of forecast error. 
B)  should not include both the expected value of the forecast and a measure of forecast error. 
C)  should only be used when there are no accurate estimates. 
D)  should be missing the expected value of the forecast and a measure of forecast error. 
E)  none of the above 
A)  should include both the expected value of the forecast and a measure of forecast error. 
B)  should not include both the expected value of the forecast and a measure of forecast error. 
C)  should only be used when there are no accurate estimates. 
D)  should be missing the expected value of the forecast and a measure of forecast error. 
E)  none of the above

Question 4

With respect to time-series methods,the systematic component measures the expected value of demand and does NOT consist of

Accepted Answer

A)  level. 
B)  trend. 
C)  seasonality. 
D)  random component. 
A)  level. 
B)  trend. 
C)  seasonality. 
D)  random component.

Question 5

One of the characteristics of forecasts is

Accepted Answer

A)  forecasts are always right. 
B)  forecasts are always wrong. 
C)  short-term forecasts are usually less accurate than long-term forecasts. 
D)  long-term forecasts are usually more accurate than short-term forecasts. 
E)  none of the above 
A)  forecasts are always right. 
B)  forecasts are always wrong. 
C)  short-term forecasts are usually less accurate than long-term forecasts. 
D)  long-term forecasts are usually more accurate than short-term forecasts. 
E)  none of the above

Question 6

Which of the following is not a necessary step to estimate the three parameters-level,trend,and seasonal factors of the systematic component of demand?

Accepted Answer

A)  Deseasonalize demand and run linear regression to estimate level and trend. 
B)  Estimate seasonal factors. 
C)  Remove the trend factor of demand and run linear regression to estimate seasonal factors. 
D)  All of the above are steps. 
E)  None of the above are steps. 
A)  Deseasonalize demand and run linear regression to estimate level and trend. 
B)  Estimate seasonal factors. 
C)  Remove the trend factor of demand and run linear regression to estimate seasonal factors. 
D)  All of the above are steps. 
E)  None of the above are steps.

Question 7

The resulting accuracy of a collaborative forecast enables supply chains to be

Accepted Answer

A)  more responsive but less efficient in serving their customers. 
B)  both more responsive and more efficient in serving their customers. 
C)  less responsive but less efficient in serving their customers. 
D)  both less responsive and less efficient in serving their customers. 
E)  None of the above are true. 
A)  more responsive but less efficient in serving their customers. 
B)  both more responsive and more efficient in serving their customers. 
C)  less responsive but less efficient in serving their customers. 
D)  both less responsive and less efficient in serving their customers. 
E)  None of the above are true.

Question 8

The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.

Accepted Answer

A) True 
 B)False

Question 9

Personnel can utilize forecasts to make decisions concerning

Accepted Answer

A)  scheduling. 
B)  promotions. 
C)  plant/equipment investment. 
D)  workforce planning. 
E)  purchasing. 
A)  scheduling. 
B)  promotions. 
C)  plant/equipment investment. 
D)  workforce planning. 
E)  purchasing.

Question 10

A static method of forecasting assumes that the estimates of level,trend,and seasonality within the systematic component vary as new demand is observed.

Accepted Answer

A) True 
 B)False

Question 11

Causal forecasting methods find a correlation between demand and environmental factors and use estimates of what environmental factors will be to forecast future demand.

Accepted Answer

A) True 
 B)False

Question 12

________ forecasting methods use historical demand to make a forecast.

Accepted Answer

A)  Qualitative 
B)  Time-series 
C)  Causal 
D)  Simulation 
A)  Qualitative 
B)  Time-series 
C)  Causal 
D)  Simulation

Question 13

The equation for calculating the systematic component may take a variety of forms.Which is not one of those forms listed in the text?

Accepted Answer

A)  Associative 
B)  Multiplicative 
C)  Additive 
D)  Mixed 
A)  Associative 
B)  Multiplicative 
C)  Additive 
D)  Mixed

Question 14

The moving average forecast method is used when demand has an observable trend or seasonality.

Accepted Answer

A) True 
 B)False

Question 15

Forecasting methods that use historical demand to make a forecast are known as

Accepted Answer

A)  qualitative forecasting methods. 
B)  time series forecasting methods. 
C)  causal forecasting methods. 
D)  simulation forecasting methods. 
E)  none of the above 
A)  qualitative forecasting methods. 
B)  time series forecasting methods. 
C)  causal forecasting methods. 
D)  simulation forecasting methods. 
E)  none of the above

Question 16

Forecasting methods that are primarily subjective and rely on human judgment are known as

Accepted Answer

A)  qualitative forecasting methods. 
B)  time series forecasting methods. 
C)  causal forecasting methods. 
D)  simulation forecasting methods. 
E)  none of the above 
A)  qualitative forecasting methods. 
B)  time series forecasting methods. 
C)  causal forecasting methods. 
D)  simulation forecasting methods. 
E)  none of the above

Question 17

A static method of forecasting

Accepted Answer

A)  assumes that the estimates of level, trend, and seasonality within the systematic component do not vary as new demand is observed. 
B)  assumes that the estimates of level, trend, and seasonality within the systematic component vary as new demand is observed. 
C)  the estimates of level, trend, and seasonality are updated after each demand observation. 
D)  All of the above are true. 
E)  None of the above are true. 
A)  assumes that the estimates of level, trend, and seasonality within the systematic component do not vary as new demand is observed. 
B)  assumes that the estimates of level, trend, and seasonality within the systematic component vary as new demand is observed. 
C)  the estimates of level, trend, and seasonality are updated after each demand observation. 
D)  All of the above are true. 
E)  None of the above are true.

Question 18

The simple exponential smoothing forecast method is appropriate when

Accepted Answer

A)  demand has observable trend or seasonality. 
B)  demand has no observable trend or seasonality. 
C)  demand has observable trend and seasonality. 
D)  demand has no observable level or seasonality. 
E)  none of the above 
A)  demand has observable trend or seasonality. 
B)  demand has no observable trend or seasonality. 
C)  demand has observable trend and seasonality. 
D)  demand has no observable level or seasonality. 
E)  none of the above

Question 19

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly variable.

Accepted Answer

A) True 
 B)False

Question 20

When all stages of a supply chain produce a collaborative forecast,it tends to be

Accepted Answer

A)  much more detailed. 
B)  much more complex. 
C)  much more accurate. 
D)  much more flexible. 
E)  all of the above 
A)  much more detailed. 
B)  much more complex. 
C)  much more accurate. 
D)  much more flexible. 
E)  all of the above

Simulation forecasting methods imitate the consumer choices that give rise to demand to arrive at a forecast.

Mature products with stable demand are usually the most difficult to forecast.

Forecasts are always wrong and therefore

With respect to time-series methods,the systematic component measures the expected value of demand and does NOT consist of

One of the characteristics of forecasts is

Which of the following is not a necessary step to estimate the three parameters-level,trend,and seasonal factors of the systematic component of demand?

The resulting accuracy of a collaborative forecast enables supply chains to be

The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.

Personnel can utilize forecasts to make decisions concerning

A static method of forecasting assumes that the estimates of level,trend,and seasonality within the systematic component vary as new demand is observed.

Causal forecasting methods find a correlation between demand and environmental factors and use estimates of what environmental factors will be to forecast future demand.

________ forecasting methods use historical demand to make a forecast.

The equation for calculating the systematic component may take a variety of forms.Which is not one of those forms listed in the text?

The moving average forecast method is used when demand has an observable trend or seasonality.

Forecasting methods that use historical demand to make a forecast are known as

Forecasting methods that are primarily subjective and rely on human judgment are known as

A static method of forecasting

The simple exponential smoothing forecast method is appropriate when

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly variable.

When all stages of a supply chain produce a collaborative forecast,it tends to be

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 7: Demand Forecasting in a Supply Chain

Simulation forecasting methods imitate the consumer choices that give rise to demand to arrive at a forecast.

Mature products with stable demand are usually the most difficult to forecast.

Forecasts are always wrong and therefore

With respect to time-series methods,the systematic component measures the expected value of demand and does NOT consist of

One of the characteristics of forecasts is

Which of the following is not a necessary step to estimate the three parameters-level,trend,and seasonal factors of the systematic component of demand?

The resulting accuracy of a collaborative forecast enables supply chains to be

The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.

Personnel can utilize forecasts to make decisions concerning

A static method of forecasting assumes that the estimates of level,trend,and seasonality within the systematic component vary as new demand is observed.

Causal forecasting methods find a correlation between demand and environmental factors and use estimates of what environmental factors will be to forecast future demand.

________ forecasting methods use historical demand to make a forecast.

The equation for calculating the systematic component may take a variety of forms.Which is not one of those forms listed in the text?

The moving average forecast method is used when demand has an observable trend or seasonality.

Forecasting methods that use historical demand to make a forecast are known as

Forecasting methods that are primarily subjective and rely on human judgment are known as

A static method of forecasting

The simple exponential smoothing forecast method is appropriate when

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly variable.

When all stages of a supply chain produce a collaborative forecast,it tends to be

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters