Question 1

When a trend is present,exponential smoothing always will be below or above the actual demand.

Accepted Answer

A) True 
 B)False

Question 2

Table 10.7
  
-Use the information in Table 10.7.The forecast for month 4 is

Accepted Answer

A) less than or equal to 140 units. 
B) greater than 140 but less than or equal to 150 
C) greater than 150 but less than or equal to 160 units. 
D) greater than 160 units. 
A) less than or equal to 140 units. 
B) greater than 140 but less than or equal to 150 
C) greater than 150 but less than or equal to 160 units. 
D) greater than 160 units.

Question 3

Forecasting analysts try to minimize the effects of biased and random errors when determining a forecasting method.

Accepted Answer

A) True 
 B)False

Question 4

________ is the process of adjusting price at the right time for different customer segments to maximize revenues generated from existing supply capacity.

Accepted Answer

The answer of ________ is the process of adjusting price...

Question 5

Executive opinion is a forecasting method in which the opinion,experience,and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Accepted Answer

A) True 
 B)False

Question 6

Table 10.9
  
-Use the information in Table 10.9.What is the mean absolute percent error for the data?

Accepted Answer

A) less than 5% 
B) greater than or equal to 5%,but less than 13% 
C) greater than or equal to 13%,but less than or equal to 18% 
D) greater than 18% 
A) less than 5% 
B) greater than or equal to 5%,but less than 13% 
C) greater than or equal to 13%,but less than or equal to 18% 
D) greater than 18%

Question 7

The multiplicative seasonal method is most appropriate when the

Accepted Answer

A) seasonal influence is a constant regardless of the level of demand. 
B) seasonal influence is erratic,changing in the timing of the peaks and valleys. 
C) seasonal influence is dependent on the level of demand. 
D) demand each period is a constant multiple of the demand in the previous period. 
A) seasonal influence is a constant regardless of the level of demand. 
B) seasonal influence is erratic,changing in the timing of the peaks and valleys. 
C) seasonal influence is dependent on the level of demand. 
D) demand each period is a constant multiple of the demand in the previous period.

Question 8

________ is a weighted moving average time-series method that gives recent demands more weight than earlier demands.

Accepted Answer

exponentia

Question 9

________ methods of forecasting translate the opinions of management,experts,consumers,or sales force into quantitative estimates.

Accepted Answer

The answer of ________ methods of forecasting translate the opinions...

Question 10

Which one of the following is an example of causal forecasting technique?

Accepted Answer

A) weighted moving average 
B) linear regression 
C) exponential smoothing 
D) Delphi method 
A) weighted moving average 
B) linear regression 
C) exponential smoothing 
D) Delphi method

Question 11

The ________ variable is the variable that one wants to forecast.

Accepted Answer

The answer of The ________ variable is the variable that...

Question 12

A(n)________ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

Accepted Answer

The answer of A(n)________ is a measure that indicates whether...

Question 13

Table 10.2
The manager of a pizza shop must forecast weekly demand for special pizzas
so that he can order pizza shells weekly.Recent demand has been:
  
-Use the information from Table 10.2.Using a four-week moving average,what is the forecast for week 7?

Accepted Answer

A) less than or equal to 58 
B) greater than 58 but less than or equal to 60 
C) greater than 60 but less than or equal to 62 
D) greater than 62 
A) less than or equal to 58 
B) greater than 58 but less than or equal to 60 
C) greater than 60 but less than or equal to 62 
D) greater than 62

Question 14

The mean forecast error (MFE)will approach one,if there is no bias in the forecasting model.

Accepted Answer

A) True 
 B)False

Question 15

Forecasts will always be below or above the actual demand where a trend is present,unless exponential smoothing with two components is applied.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A) The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean,one for the trend,and one for the error. 
B) The cumulative sum of forecast errors (CF
E) is useful in measuring the bias in a forecast. 
C) The standard deviation and the mean absolute deviation measure the dispersion of forecast errors. 
D) A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time. 
A) The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean,one for the trend,and one for the error. 
B) The cumulative sum of forecast errors (CF
E) is useful in measuring the bias in a forecast. 
C) The standard deviation and the mean absolute deviation measure the dispersion of forecast errors. 
D) A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.

Question 17

Forecast error is simply the difference between the forecast and actual demand.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

The answer of The ________ is a process of gaining...

Question 19

Using sales force estimates for forecasting has the advantage that

Accepted Answer

A) no biases exist in the forecasts. 
B) statistical estimates of seasonal factors are more precise than any other approach. 
C) forecasts of individual sale force members can be easily combined to get regional or national sales totals. 
D) confusion between customer "wants" (wish list)and customer "needs" (necessary purchases)is eliminated. 
A) no biases exist in the forecasts. 
B) statistical estimates of seasonal factors are more precise than any other approach. 
C) forecasts of individual sale force members can be easily combined to get regional or national sales totals. 
D) confusion between customer "wants" (wish list)and customer "needs" (necessary purchases)is eliminated.

Exam 10: Managing Demand and Forecasting

When a trend is present,exponential smoothing always will be below or above the actual demand.

Table 10.7 -Use the information in Table 10.7.The forecast for month 4 is

Forecasting analysts try to minimize the effects of biased and random errors when determining a forecasting method.

________ is the process of adjusting price at the right time for different customer segments to maximize revenues generated from existing supply capacity.

Executive opinion is a forecasting method in which the opinion,experience,and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Table 10.9 -Use the information in Table 10.9.What is the mean absolute percent error for the data?

The multiplicative seasonal method is most appropriate when the

________ is a weighted moving average time-series method that gives recent demands more weight than earlier demands.

________ methods of forecasting translate the opinions of management,experts,consumers,or sales force into quantitative estimates.

Which one of the following is an example of causal forecasting technique?

The ________ variable is the variable that one wants to forecast.

A(n)________ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

Table 10.2 The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been: -Use the information from Table 10.2.Using a four-week moving average,what is the forecast for week 7?

The mean forecast error (MFE)will approach one,if there is no bias in the forecasting model.

Forecasts will always be below or above the actual demand where a trend is present,unless exponential smoothing with two components is applied.

Which one of the following statements about forecasting is FALSE?

Forecast error is simply the difference between the forecast and actual demand.

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

Using sales force estimates for forecasting has the advantage that

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