Question 1

A backorder is the same as backlog.

Accepted Answer

A) True 
 B)False  False

Question 2

A systematic increase or decrease in the mean of a demand time series is referred to as

Accepted Answer

A) random variation. 
B) a seasonal pattern. 
C) a cyclical adjustment. 
D) a trend. 
A) random variation. 
B) a seasonal pattern. 
C) a cyclical adjustment. 
D) a trend. D

Question 3

________ is a method of incorporating a trend in an exponentially smoothed forecast.

Accepted Answer

Trend-adjusted exponential smoothing

Question 4

________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and it recognizes trends and seasonal patterns.

Accepted Answer

The answer of ________ analysis is a statistical approach that...

Question 5

A trend in a time series is a systematic increase or decrease in the average of the series over time.

Accepted Answer

A) True 
 B)False

Question 6

Table 10.7
  
-Use the information in Table 10.7.The forecast for month 3 is

Accepted Answer

A) less than or equal to 140 units. 
B) greater than 140 but less than or equal to 160 units. 
C) greater than 160 but less than or equal to 180 units. 
D) greater than 180 units. 
A) less than or equal to 140 units. 
B) greater than 140 but less than or equal to 160 units. 
C) greater than 160 but less than or equal to 180 units. 
D) greater than 180 units.

Question 7

A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.

Accepted Answer

A) True 
 B)False

Question 8

Assume that a time series forecast is generated for future demand,and subsequently it is observed that the forecast method did not accurately predict the actual demand.Specifically,the forecast errors were found to be: Mean absolute percent error = 10%
Cumulative sum of forecast errors = 0%
Which one of the statements concerning this forecast is TRUE?

Accepted Answer

A) The forecast has no bias but has a positive standard deviation of errors. 
B) The forecast has a positive bias and a standard deviation of errors equal to zero. 
C) The forecast has no bias and has a standard deviation of errors equal to zero. 
D) The forecast has a positive bias and a positive standard deviation of errors. 
A) The forecast has no bias but has a positive standard deviation of errors. 
B) The forecast has a positive bias and a standard deviation of errors equal to zero. 
C) The forecast has no bias and has a standard deviation of errors equal to zero. 
D) The forecast has a positive bias and a positive standard deviation of errors.

Question 9

Which one of the following statements about forecasting is TRUE?

Accepted Answer

A) The five basic patterns of demand are the horizontal,trend,seasonal,cyclical,and the subjective judgment of forecasters. 
B) Judgment methods are designed particularly for situations when historical data are lacking. 
C) Casual methods are used when historical data are available and the relationship between the factor to be forecast and other external and internal factors cannot be identified. 
D) Focused forecasting is a technique that focuses on one particular component of demand and develops a forecast from it. 
A) The five basic patterns of demand are the horizontal,trend,seasonal,cyclical,and the subjective judgment of forecasters. 
B) Judgment methods are designed particularly for situations when historical data are lacking. 
C) Casual methods are used when historical data are available and the relationship between the factor to be forecast and other external and internal factors cannot be identified. 
D) Focused forecasting is a technique that focuses on one particular component of demand and develops a forecast from it.

Question 10

Aggregation is the act of clustering several similar products or services.

Accepted Answer

A) True 
 B)False

Question 11

Table 10.7
  
-Use the information in Table 10.7.The forecast for month 5 is

Accepted Answer

A) less than or equal to 150 units. 
B) greater than 150 but less than or equal to 160 units. 
C) greater than 160 but less than or equal to 170 units. 
D) greater than 170 units. 
A) less than or equal to 150 units. 
B) greater than 150 but less than or equal to 160 units. 
C) greater than 160 but less than or equal to 170 units. 
D) greater than 170 units.

Question 12

________ methods use historical data on independent variables to predict demand.

Accepted Answer

The answer of ________ methods use historical data on independent...

Question 13

A quantitative approach is applied when using the Delphi forecasting method.

Accepted Answer

A) True 
 B)False

Question 14

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Accepted Answer

A) True 
 B)False

Question 15

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
  
-Use the information in Table 10.8.Use the weighted moving average method to calculate the forecast for month 7.The weights are 0.50,0.30,and 0.20,where 0.50 refers to the most recent demand.

Accepted Answer

A) less than or equal to 56 
B) greater than 56 but less than or equal to 58 
C) greater than 58 but less than or equal to 61 
D) greater than 61 
A) less than or equal to 56 
B) greater than 56 but less than or equal to 58 
C) greater than 58 but less than or equal to 61 
D) greater than 61

Question 16

Which one of the following is most useful for measuring the bias in a forecast?

Accepted Answer

A) cumulative sum of forecast errors 
B) standard deviation of forecast errors 
C) mean absolute deviation of forecast errors 
D) percentage forecast error in period t 
A) cumulative sum of forecast errors 
B) standard deviation of forecast errors 
C) mean absolute deviation of forecast errors 
D) percentage forecast error in period t

Question 17

A systematic increase or decrease in the mean of a demand time series over time is referred to as a cyclical time series.

Accepted Answer

A) True 
 B)False

Question 18

The tracking signal is a measure that indicates whether a method of forecasting is accurately predicting actual change in demand.

Accepted Answer

A) True 
 B)False

Question 19

The Acme Computer Company has recorded sales of one of its products for a six-week period:   Using the three-week moving average method,forecast sales for week 7.

Accepted Answer

A) 20 
B) 21 
C) 22 
D) 23 
A) 20 
B) 21 
C) 22 
D) 23

Question 20

Random variation is an aspect of demand that increases the accuracy of the forecast.

Accepted Answer

A) True 
 B)False

Exam 10: Managing Demand and Forecasting

A backorder is the same as backlog.

A systematic increase or decrease in the mean of a demand time series is referred to as

________ is a method of incorporating a trend in an exponentially smoothed forecast.

________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and it recognizes trends and seasonal patterns.

A trend in a time series is a systematic increase or decrease in the average of the series over time.

Table 10.7 -Use the information in Table 10.7.The forecast for month 3 is

A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.

Which one of the following statements about forecasting is TRUE?

Aggregation is the act of clustering several similar products or services.

Table 10.7 -Use the information in Table 10.7.The forecast for month 5 is

________ methods use historical data on independent variables to predict demand.

A quantitative approach is applied when using the Delphi forecasting method.

A tracking signal can be set at a predetermined level to alert a manager that action needs to be taken to modify the forecasting model.

Table 10.8 A manager wants to forecast the monthly demand for a machine the company produces. -Use the information in Table 10.8.Use the weighted moving average method to calculate the forecast for month 7.The weights are 0.50,0.30,and 0.20,where 0.50 refers to the most recent demand.

Which one of the following is most useful for measuring the bias in a forecast?

A systematic increase or decrease in the mean of a demand time series over time is referred to as a cyclical time series.

The tracking signal is a measure that indicates whether a method of forecasting is accurately predicting actual change in demand.

The Acme Computer Company has recorded sales of one of its products for a six-week period: Using the three-week moving average method,forecast sales for week 7.

Random variation is an aspect of demand that increases the accuracy of the forecast.

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Quality and Process Improvement

Lean Systems

Managing Projects

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Learning Curve Analysis

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Simulation

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