Question 1

Table 10.4
  
-Use the information in Table 10.4.What is the forecast for July with the two-month moving average method and June sales of 40 units?

Accepted Answer

A) less than or equal to 25 units 
B) greater than 25 but less than or equal to 30 units 
C) greater than 30 but less than or equal to 35 units 
D) greater than 35 units 
A) less than or equal to 25 units 
B) greater than 25 but less than or equal to 30 units 
C) greater than 30 but less than or equal to 35 units 
D) greater than 35 units

Question 2

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A) To achieve the objective of developing a useful forecast from the information at hand,the forecaster must select the appropriate technique.This choice sometimes involves a trade-off between forecast accuracy and cost. 
B) Three general types of forecasting techniques are used for demand forecasting: time series analysis,causal methods,and judgment methods. 
C) Time series express the relationship between the factor to be forecast and related factors,such as promotional campaigns,economic conditions,and competitor actions. 
D) A time series is a list of repeated observations of a phenomenon,such as demand,arranged in the order in which they actually occurred. 
A) To achieve the objective of developing a useful forecast from the information at hand,the forecaster must select the appropriate technique.This choice sometimes involves a trade-off between forecast accuracy and cost. 
B) Three general types of forecasting techniques are used for demand forecasting: time series analysis,causal methods,and judgment methods. 
C) Time series express the relationship between the factor to be forecast and related factors,such as promotional campaigns,economic conditions,and competitor actions. 
D) A time series is a list of repeated observations of a phenomenon,such as demand,arranged in the order in which they actually occurred.

Question 3

Judgment methods of forecasting should never be used with quantitative forecasting methods.

Accepted Answer

A) True 
 B)False

Question 4

Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand.

Accepted Answer

A) True 
 B)False

Question 5

A naive forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

Accepted Answer

A) True 
 B)False

Question 6

The Delphi method is a process of gaining consensus from a group of experts while maintaining their anonymity.

Accepted Answer

A) True 
 B)False

Question 7

Table 10.7
  
-Use the information in Table 10.7.The cumulative sum of errors CFE from months 2 through 5 is

Accepted Answer

A) less than or equal to 80. 
B) greater than 80 but less than or equal to 85. 
C) greater than 87 but less than or equal to 90. 
D) greater than 90. 
A) less than or equal to 80. 
B) greater than 80 but less than or equal to 85. 
C) greater than 87 but less than or equal to 90. 
D) greater than 90.

Question 8

A backlog is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.

Accepted Answer

A) True 
 B)False

Question 9

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
  
-Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the weighted moving average forecasts.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 2 
B) greater than 2 but less than or equal to 3 
C) greater than 3 but less than or equal to 4 
D) greater than 4 
A) less than or equal to 2 
B) greater than 2 but less than or equal to 3 
C) greater than 3 but less than or equal to 4 
D) greater than 4

Question 10

A(n)________ is a customer order that cannot be filled immediately but is filled as soon as possible.

Accepted Answer

The answer of A(n)________ is a customer order that cannot...

Question 11

Table 10.9
  
-Use the information in Table 10.9.What is the mean absolute deviation of forecast errors for the data?

Accepted Answer

A) 0 units 
B) greater than 0,but less than or equal to 25 units 
C) greater than 25,but less than or equal to 50 units 
D) greater than 50 units 
A) 0 units 
B) greater than 0,but less than or equal to 25 units 
C) greater than 25,but less than or equal to 50 units 
D) greater than 50 units

Question 12

________ is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

Accepted Answer

The answer of ________ is a causal method of forecasting...

Question 13

Table 10.4
  
-Use the information in Table 10.4.Suppose actual sales in June turn out to be 40 units.Use the three-month moving average method to forecast the sales in July.

Accepted Answer

A) less than or equal to 27 
B) greater than 27 but less than or equal to 29 units 
C) greater than 29 but less than or equal to 31 units 
D) greater than 31 units 
A) less than or equal to 27 
B) greater than 27 but less than or equal to 29 units 
C) greater than 29 but less than or equal to 31 units 
D) greater than 31 units

Question 14

An independent variable is the measure or quantity being forecast in linear regression analysis.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A) You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences. 
B) The weighted moving average method allows forecasters to emphasize recent demand over earlier demand.The forecast will be more responsive to change in the underlying average of the demand series. 
C) The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
D) In exponential smoothing,higher alpha values place greater weight on recent demands in computing the average. 
A) You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences. 
B) The weighted moving average method allows forecasters to emphasize recent demand over earlier demand.The forecast will be more responsive to change in the underlying average of the demand series. 
C) The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
D) In exponential smoothing,higher alpha values place greater weight on recent demands in computing the average.

Question 16

A(n)________ forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

Accepted Answer

The answer of A(n)________ forecast is a time-series method whereby...

Question 17

Doctors,dentists,lawyers,and automobile repair shops are examples of service providers that use ________.

Accepted Answer

The answer of Doctors,dentists,lawyers,and automobile repair shops are examples of...

Question 18

Table 10.4
  
-Use the information in Table 10.4.The forecasting equation for a three-month weighted moving average is: At = W1Dt + W2Dt - 1 + W3Dt - 2   =     +     -1 +     -2
If the sales for June were 40 units and the weights are W1= 1/2,W2 = 1/3,and W3 = 1/6,what is the forecast for July?

Accepted Answer

A) less than or equal to 30 units 
B) greater than 30 but less than or equal to 33 units 
C) greater than 33 but less than or equal to 36 units 
D) greater than 36 units 
A) less than or equal to 30 units 
B) greater than 30 but less than or equal to 33 units 
C) greater than 33 but less than or equal to 36 units 
D) greater than 36 units

Question 19

changes in the dependent variable must take place with sufficient lead time before the associated change in the independent variables,for causal model to be useful as a forecasting tool.

Accepted Answer

A) True 
 B)False

Question 20

Table 10.3
  
-Use the information in Table 10.3.If the actual number of patients is 415 in week 5,what is the forecast for week 6 using a three-week moving average forecast?

Accepted Answer

A) less than or equal to 390 
B) greater than 390 but less than or equal to 398 
C) greater than 398 but less than or equal to 406 
D) greater than 406 
A) less than or equal to 390 
B) greater than 390 but less than or equal to 398 
C) greater than 398 but less than or equal to 406 
D) greater than 406

Exam 10: Managing Demand and Forecasting

Table 10.4 -Use the information in Table 10.4.What is the forecast for July with the two-month moving average method and June sales of 40 units?

Which one of the following statements about forecasting is FALSE?

Judgment methods of forecasting should never be used with quantitative forecasting methods.

Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand.

A naive forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

The Delphi method is a process of gaining consensus from a group of experts while maintaining their anonymity.

Table 10.7 -Use the information in Table 10.7.The cumulative sum of errors CFE from months 2 through 5 is

A backlog is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.

Table 10.8 A manager wants to forecast the monthly demand for a machine the company produces. -Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the weighted moving average forecasts.The weights are 0.50,0.30,and 0.20,where 0.50 refers to the most recent demand.

A(n)________ is a customer order that cannot be filled immediately but is filled as soon as possible.

Table 10.9 -Use the information in Table 10.9.What is the mean absolute deviation of forecast errors for the data?

________ is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

Table 10.4 -Use the information in Table 10.4.Suppose actual sales in June turn out to be 40 units.Use the three-month moving average method to forecast the sales in July.

An independent variable is the measure or quantity being forecast in linear regression analysis.

Which one of the following statements about forecasting is FALSE?

A(n)________ forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

Doctors,dentists,lawyers,and automobile repair shops are examples of service providers that use ________.

Table 10.4 -Use the information in Table 10.4.The forecasting equation for a three-month weighted moving average is: At = W1Dt + W2Dt - 1 + W3Dt - 2 = + -1 + -2 If the sales for June were 40 units and the weights are W1= 1/2,W2 = 1/3,and W3 = 1/6,what is the forecast for July?

changes in the dependent variable must take place with sufficient lead time before the associated change in the independent variables,for causal model to be useful as a forecasting tool.

Table 10.3 -Use the information in Table 10.3.If the actual number of patients is 415 in week 5,what is the forecast for week 6 using a three-week moving average forecast?

Creating Customer Value Through Operations

Supply Chain Management

Process Configuration

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Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

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Operations Planning and Scheduling

Resource Planning

Waiting Lines

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

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Linear Programming

Filters

Table 10.4 -Use the information in Table 10.4.The forecasting equation for a three-month weighted moving average is: A_t = W₁D_t + W₂D_t - 1 + W₃D_t - 2 = + -1 + -2 If the sales for June were 40 units and the weights are W₁= 1/2,W₂ = 1/3,and W₃ = 1/6,what is the forecast for July?