Exam 7: Demand Forecasting in a Supply Chain

A supermarket has experienced weekly demand of milk of D1 = 130,D2 =117,D3 =124,and D4 =142 gallons over the last four weeks.Forecast demand for Period 5 using a three-period moving average.

In general,the further up the supply chain a company is (or the further they are from the consumer),the smaller the distortion of information they receive.

The trend corrected exponential smoothing (Holt's Model)forecast method is appropriate when

The measure of whether a forecast method consistently over- or underestimates demand is

Qualitative forecasting methods are most appropriate when

Forecasting and the accompanying managerial decisions are relatively simple when either the supply of raw materials or the demand for the finished product is highly unpredictable.

Finance can utilize forecasts to make decisions concerning

Which of the following is a commonly used measure for measuring forecast error?

The measure of forecast error where the average absolute error of each forecast is shown as a percentage of demand is

Throughout the supply chain,all pull processes are performed in anticipation of customer demand,whereas all push processes are performed in response to customer demand.

Long-term forecasts are usually less accurate than short-term forecasts because

The forecast error measures the difference between the forecast and the estimate.

________ forecasting methods are primarily subjective and rely on human judgment.

For pull processes,a manager must plan the level of available capacity and inventory but not the actual amount to be executed.

Qualitative forecasting methods are most appropriate when there is good historical data available or when experts do not have market intelligence that is critical in making the forecast.

For pull processes,a manager must forecast what customer demand will be in order to

The goal of any forecasting method is to predict the systematic component of demand and estimate the random component.

One of the characteristics of forecasts is

The additive form of the systematic component of demand is shown as

The multiplicative form of the systematic component of demand is shown as