Question 1

In order to begin exponential smoothing,a forecaster needs ______.

Accepted Answer

A) seasonal indices 
B) tracking signals 
C) the value of α 
D) leading indicators 
A) seasonal indices 
B) tracking signals 
C) the value of α 
D) leading indicators

Question 2

In regression analysis,the ______ is the measure of the variation of the actual Y (independent variable)values around the mean Y (Y̅).

Accepted Answer

A) total sum of squares (SST) 
B) error sum of squares (SS
E)  
C) regression sum of squares (SSR) 
D) standard error of the estimate 
A) total sum of squares (SST) 
B) error sum of squares (SS
E)  
C) regression sum of squares (SSR) 
D) standard error of the estimate

Question 3

Which of the following is an example of a qualitative method?

Accepted Answer

A) Delphi method 
B) moving average 
C) weighted moving average 
D) linear trend analysis 
A) Delphi method 
B) moving average 
C) weighted moving average 
D) linear trend analysis

Question 4

Which of the following statements is true about the error sum of squares (SSE)?

Accepted Answer

A) It measures the variation resulting from the relationship between the independent and dependent variable. 
B) It measures the variation of the actual Y (independent variable)values around the mean Y (Y̅). 
C) It measures the variation not explained by the regression but resulting from other factors or variables. 
D) It measures the variation explained by the regression. 
A) It measures the variation resulting from the relationship between the independent and dependent variable. 
B) It measures the variation of the actual Y (independent variable)values around the mean Y (Y̅). 
C) It measures the variation not explained by the regression but resulting from other factors or variables. 
D) It measures the variation explained by the regression.

Question 5

The unusual demand for basic necessities in the aftermath of a natural disaster is an example of ______.

Accepted Answer

A) cyclical variations 
B) irregular variations 
C) seasonal variations 
D) exponential variations 
A) cyclical variations 
B) irregular variations 
C) seasonal variations 
D) exponential variations

Question 6

Falsely flagging a forecasting method as out of control when small deviations occurring in one direction may not really reflect a real change in demand pattern is a drawback of ______.

Accepted Answer

A) control charts 
B) r-charts 
C) tracking signals 
D) leading indicators 
A) control charts 
B) r-charts 
C) tracking signals 
D) leading indicators

Question 7

With ______ trend,the level of demand increases initially,but over the long run,it levels off.

Accepted Answer

A) no trend (level demand) 
B) linear trend 
C) exponential growth 
D) damped trend 
A) no trend (level demand) 
B) linear trend 
C) exponential growth 
D) damped trend

Question 8

The demand levels remain more or less constant over time.This is a characteristic of ______.

Accepted Answer

A) no trend (level demand) 
B) linear trend 
C) exponential growth 
D) damped trend 
A) no trend (level demand) 
B) linear trend 
C) exponential growth 
D) damped trend

Question 9

Which of the following statements is true?

Accepted Answer

A) Leading indicators are frequently used to track cyclical fluctuations. 
B) Leading indicators are frequently used to track seasonal fluctuations. 
C) Lagging indicators are frequently used to track cyclical fluctuations. 
D) Lagging indicators are frequently used to track seasonal fluctuations. 
A) Leading indicators are frequently used to track cyclical fluctuations. 
B) Leading indicators are frequently used to track seasonal fluctuations. 
C) Lagging indicators are frequently used to track cyclical fluctuations. 
D) Lagging indicators are frequently used to track seasonal fluctuations.

Question 10

Which of following assumptions related to the validity of the linear regression model is false?

Accepted Answer

A) The independent and dependent variables have a linear relationship. 
B) The error terms have a constant variance. 
C) The error terms are not normally distributed. 
D) The error terms have no correlation. 
A) The independent and dependent variables have a linear relationship. 
B) The error terms have a constant variance. 
C) The error terms are not normally distributed. 
D) The error terms have no correlation.

Question 11

Which of the following is a drawback of mean absolute deviation (MAD)?

Accepted Answer

A) There is no information about the forecasting bias. 
B) The cancellation of the positive and negative forecast errors can distort the information. 
C) Large errors tend to be magnified because they are squared. 
D) It is very complex to calculate. 
A) There is no information about the forecasting bias. 
B) The cancellation of the positive and negative forecast errors can distort the information. 
C) Large errors tend to be magnified because they are squared. 
D) It is very complex to calculate.

Question 12

The ______ is the proportion of variation explained by regression.

Accepted Answer

A) standard error of the estimate 
B) total sum of squares (SST) 
C) correlation coefficient 
D) coefficient of determination 
A) standard error of the estimate 
B) total sum of squares (SST) 
C) correlation coefficient 
D) coefficient of determination

Question 13

Which of the following methods is used for calculating seasonal indices?

Accepted Answer

A) simple linear regression 
B) centered moving average 
C) multiple linear regression 
D) weighted moving average 
A) simple linear regression 
B) centered moving average 
C) multiple linear regression 
D) weighted moving average

Question 14

The correlation coefficient takes on a value between ______.

Accepted Answer

A) 0 and 1 
B) -1 and +1 
C) -∞ to +∞ 
D) -2 to +2 
A) 0 and 1 
B) -1 and +1 
C) -∞ to +∞ 
D) -2 to +2

Question 15

Which of the following statements is FALSE about good forecasts?

Accepted Answer

A) They should be easy to interpret so that users have confidence in the forecasts. 
B) The costs of preparing the forecasts should outweigh its benefits. 
C) Any deviations from actual demand should be small. 
D) They should be available within a reasonable timeframe. 
A) They should be easy to interpret so that users have confidence in the forecasts. 
B) The costs of preparing the forecasts should outweigh its benefits. 
C) Any deviations from actual demand should be small. 
D) They should be available within a reasonable timeframe.

Question 16

Forecasts can contribute to ethical decision-making in which of the following ways?

Accepted Answer

A) Ethics are not used to make forecasts. 
B) Ethics affect the results of the forecasting efforts. 
C) Ethics do not usually affect the results of the forecasting efforts. 
D) Ethics do not play a prominent role in forecasting. 
A) Ethics are not used to make forecasts. 
B) Ethics affect the results of the forecasting efforts. 
C) Ethics do not usually affect the results of the forecasting efforts. 
D) Ethics do not play a prominent role in forecasting.

Question 17

Which of the following is an example of a forecasted activity in tactical decision making?

Accepted Answer

A) new product development 
B) sales and production planning 
C) production scheduling 
D) worker assignments 
A) new product development 
B) sales and production planning 
C) production scheduling 
D) worker assignments

Question 18

Using the moving average technique,compute the forecast for Week 5 with n = 3 with the data that follows. $$\begin{array} { | c | c | } 
\hline \text { Week } & \text { Number of Patients } \
\hline 1 & 100 \
\hline 2 & 80 \
\hline 3 & 90 \
\hline 4 & 100 \
\hline
\end{array}$$

Accepted Answer

A) 100 
B) 90 
C) 80 
D) 75 
A) 100 
B) 90 
C) 80 
D) 75

Question 19

The two subcategories of quantitative methods are ______.

Accepted Answer

A) time series analysis and causal methods 
B) simple linear regression and multiple linear regression analysis 
C) exponential smoothing and seasonality techniques 
D) simple moving average and weighted moving average 
A) time series analysis and causal methods 
B) simple linear regression and multiple linear regression analysis 
C) exponential smoothing and seasonality techniques 
D) simple moving average and weighted moving average

Question 20

______ is the sum of the differences between the actual and the forecasted demand values.

Accepted Answer

A) Mean squared error (MS
E)  
B) Mean absolute deviation (MA
D)  
C) Mean absolute percentage error (MAP
E)  
D) Cumulative sum error (CS
E)  
A) Mean squared error (MS
E)  
B) Mean absolute deviation (MA
D)  
C) Mean absolute percentage error (MAP
E)  
D) Cumulative sum error (CS
E)

Exam 16: Demand Forecasting Methods

In order to begin exponential smoothing,a forecaster needs ______.

In regression analysis,the ______ is the measure of the variation of the actual Y (independent variable)values around the mean Y (Y̅).

Which of the following is an example of a qualitative method?

Which of the following statements is true about the error sum of squares (SSE)?

The unusual demand for basic necessities in the aftermath of a natural disaster is an example of ______.

Falsely flagging a forecasting method as out of control when small deviations occurring in one direction may not really reflect a real change in demand pattern is a drawback of ______.

With ______ trend,the level of demand increases initially,but over the long run,it levels off.

The demand levels remain more or less constant over time.This is a characteristic of ______.

Which of the following statements is true?

Which of following assumptions related to the validity of the linear regression model is false?

Which of the following is a drawback of mean absolute deviation (MAD)?

The ______ is the proportion of variation explained by regression.

Which of the following methods is used for calculating seasonal indices?

The correlation coefficient takes on a value between ______.

Which of the following statements is FALSE about good forecasts?

Forecasts can contribute to ethical decision-making in which of the following ways?

Which of the following is an example of a forecasted activity in tactical decision making?

Using the moving average technique,compute the forecast for Week 5 with n = 3 with the data that follows. Week Number of Patients 1 100 2 80 3 90 4 100

The two subcategories of quantitative methods are ______.

______ is the sum of the differences between the actual and the forecasted demand values.

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

Master Scheduling and Material Requirements Planning

Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters