Exam 10: Managing Demand and Forecasting

When using linear regression for forecasting,the independent variable is the variable that one wants to forecast.

Linear regression analysis always involves predicting one dependent variable based on one independent variable.

Aggregating products or services together generally decreases the forecast accuracy.

A business firm can be provided with the expected level of demand for goods and services by an economic forecast.

Forecasting capacity needs is not generally considered important for service operations due to not having inventory.

The judgment methods of forecasting are to be used for purposes of

In relation to forecasting,there are no natural laws that make the relationship between demand and other variables continue to behave as they have done in the past.

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

It is now near the end of May and you must prepare a forecast for June for a certain product.The forecast for May was 900 units.The actual demand for May was 1000 units.You are using the exponential smoothing method with α = 0.20.The forecast for June is

The sample ________ coefficient measures the direction and strength of the relationship between the independent and dependent variables in a linear regression equation.

Table 10.3 -Use the information in Table 10.3.Calculate the exponential smoothing forecast for week 5 using α = 0.10 and = 410.

So called cyclical patterns involving gradual increases or decreases in demand over long periods of time cannot be predicted with forecasting.

A weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier methods is called

________ is the act of clustering several similar products or services so that companies can obtain more accurate forecasts.

A(n)________ is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

Table 10.3 -Use the information in Table 10.3.Compute a three-week moving average forecast for the arrival of medical clinic patients in week 5.

Which one of the following time series forecasting methods will generate the most accurate forecasts when demands have a consistent trend pattern?

________ is the prediction of future events used for planning purposes.

________ forecasts are produced by averaging independent forecasts based on different methods or data or both.