Question 1

The larger the number of periods in the simple moving average forecasting method,the greater the method's responsiveness to changes in demand.

Accepted Answer

A) True 
 B)False

Question 2

Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?

Accepted Answer

A) Exponential smoothing is more easily used in combination with the Delphi method. 
B) More emphasis can be placed on recent values using the weighted moving average. 
C) Exponential smoothing is considerably more difficult to implement on a computer. 
D) Exponential smoothing typically requires less record keeping of past data. 
E) Exponential smoothing allows one to develop forecasts for multiple periods,whereas the weighted moving average technique does not. 
A) Exponential smoothing is more easily used in combination with the Delphi method. 
B) More emphasis can be placed on recent values using the weighted moving average. 
C) Exponential smoothing is considerably more difficult to implement on a computer. 
D) Exponential smoothing typically requires less record keeping of past data. 
E) Exponential smoothing allows one to develop forecasts for multiple periods,whereas the weighted moving average technique does not.

Question 4

Given an actual demand this period of 61,a forecast for this period of 58,and an alpha of 0.3,what would the forecast for the next period be using exponential smoothing?

Accepted Answer

A) 45.5 
B) 57.1 
C) 58.9 
D) 61.0 
E) 65.5 
A) 45.5 
B) 57.1 
C) 58.9 
D) 61.0 
E) 65.5

Question 5

Jim's department at a local department store has tracked the sales of a product over the last ten weeks.Forecast demand using exponential smoothing with an alpha of 0.4,and an initial forecast of 28.0 for period 1.Calculate the MAD.Calculate the tracking signal.What do you recommend?

Accepted Answer

@#IMG-DLM& The tracking signal RSFE/MAD

Question 6

Forecasts are usually classified by time horizon into which three categories?

Accepted Answer

A) short-range,medium-range,and long-range 
B) finance/accounting,marketing,and operations 
C) strategic,tactical,and operational 
D) exponential smoothing,regression,and time series 
E) departmental,organizational,and industrial 
A) short-range,medium-range,and long-range 
B) finance/accounting,marketing,and operations 
C) strategic,tactical,and operational 
D) exponential smoothing,regression,and time series 
E) departmental,organizational,and industrial

Question 7

A restaurant has tracked the number of meals served at lunch over the last four weeks.The data show little in terms of trends,but do display substantial variation by day of the week.Use the following information to determine the seasonal (daily)indices for this restaurant.

Accepted Answer

The answer of A restaurant has tracked the number of...

Question 8

Which of the following is NOT a characteristic of exponential smoothing?

Accepted Answer

A) smoothes random variations in the data 
B) uses an easily altered weighting scheme 
C) weights each historical value equally 
D) has minimal data storage requirements 
E) uses the previous period's forecast 
A) smoothes random variations in the data 
B) uses an easily altered weighting scheme 
C) weights each historical value equally 
D) has minimal data storage requirements 
E) uses the previous period's forecast

Question 9

Seasonal indices adjust raw data for patterns that repeat at regular time intervals.

Accepted Answer

A) True 
 B)False

Question 10

The following trend projection is used to predict quarterly demand: y-hat = 250 - 2.5x,where x = 1 in the first quarter.Seasonal (quarterly)indices are Quarter 1 = 1.5;Quarter 2 = 0.8;Quarter 3 = 1.1;and Quarter 4 = 0.6.What is the seasonally adjusted forecast for the next four quarters?

Accepted Answer

Quarter Projection A

Question 11

Time-series data may exhibit which of the following behaviors?

Accepted Answer

A) trend 
B) random variations 
C) seasonality 
D) cycles 
E) They may exhibit all of the above. 
A) trend 
B) random variations 
C) seasonality 
D) cycles 
E) They may exhibit all of the above.

Question 12

Forecasts used for new product planning,capital expenditures,facility location or expansion,and R&D typically utilize a:

Accepted Answer

A) short-range time horizon. 
B) medium-range time horizon. 
C) long-range time horizon. 
D) naive method,because there is no data history. 
E) trend extrapolation. 
A) short-range time horizon. 
B) medium-range time horizon. 
C) long-range time horizon. 
D) naive method,because there is no data history. 
E) trend extrapolation.

Question 13

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

Accepted Answer

A tracking signal is a measure of how we

Question 14

If two variables were perfectly correlated,what would the coefficient of correlation r equal?

Accepted Answer

A) 0 
B) -1 
C) 1 
D) B or C 
E) none of the above 
A) 0 
B) -1 
C) 1 
D) B or C 
E) none of the above

Question 15

Which of the following values of alpha would cause exponential smoothing to respond the SLOWEST to forecast errors?

Accepted Answer

A) 0.10 
B) 0.2246 
C) 0.50 
D) 0.90 
E) cannot be determined 
A) 0.10 
B) 0.2246 
C) 0.50 
D) 0.90 
E) cannot be determined

Question 16

One advantage of exponential smoothing is the limited amount of record keeping involved.

Accepted Answer

A) True 
 B)False

Question 17

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of:

Accepted Answer

A) exponential smoothing including trend. 
B) adaptive smoothing. 
C) trend projection. 
D) focus forecasting. 
E) multiple regression analysis. 
A) exponential smoothing including trend. 
B) adaptive smoothing. 
C) trend projection. 
D) focus forecasting. 
E) multiple regression analysis.

Question 18

Use exponential smoothing with trend adjustment to forecast deliveries for period 10.Let alpha = 0.4,beta = 0.2,and let the initial trend value be 4 and the initial forecast be 200.

Accepted Answer

The answer of Use exponential smoothing with trend adjustment to...

Question 19

Linear regression is known as a(n)________ model because it incorporates variables or factors that might influence the quantity being forecast.

Accepted Answer

associativ

Question 20

Forecasts may be influenced by a product's position in its life cycle.

Accepted Answer

A) True 
 B)False

Exam 4: Forecasting Demand

The larger the number of periods in the simple moving average forecasting method,the greater the method's responsiveness to changes in demand.

Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables.

Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?

Given an actual demand this period of 61,a forecast for this period of 58,and an alpha of 0.3,what would the forecast for the next period be using exponential smoothing?

Jim's department at a local department store has tracked the sales of a product over the last ten weeks.Forecast demand using exponential smoothing with an alpha of 0.4,and an initial forecast of 28.0 for period 1.Calculate the MAD.Calculate the tracking signal.What do you recommend?

Forecasts are usually classified by time horizon into which three categories?

A restaurant has tracked the number of meals served at lunch over the last four weeks.The data show little in terms of trends,but do display substantial variation by day of the week.Use the following information to determine the seasonal (daily)indices for this restaurant.

Which of the following is NOT a characteristic of exponential smoothing?

Seasonal indices adjust raw data for patterns that repeat at regular time intervals.

The following trend projection is used to predict quarterly demand: y-hat = 250 - 2.5x,where x = 1 in the first quarter.Seasonal (quarterly)indices are Quarter 1 = 1.5;Quarter 2 = 0.8;Quarter 3 = 1.1;and Quarter 4 = 0.6.What is the seasonally adjusted forecast for the next four quarters?

Time-series data may exhibit which of the following behaviors?

Forecasts used for new product planning,capital expenditures,facility location or expansion,and R&D typically utilize a:

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

If two variables were perfectly correlated,what would the coefficient of correlation r equal?

Which of the following values of alpha would cause exponential smoothing to respond the SLOWEST to forecast errors?

One advantage of exponential smoothing is the limited amount of record keeping involved.

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of:

Use exponential smoothing with trend adjustment to forecast deliveries for period 10.Let alpha = 0.4,beta = 0.2,and let the initial trend value be 4 and the initial forecast be 200.

Linear regression is known as a(n)________ model because it incorporates variables or factors that might influence the quantity being forecast.

Forecasts may be influenced by a product's position in its life cycle.

Operations and Productivity

The Global Environment and Operations Strategy

Managing Projects

Product Design

Quality Management and International Standards

Process Design

Location Decisions

Layout Decisions

Job Design and Work Measurement

Supply Chain Management

Managing Inventory

Aggregate Scheduling

Material Requirements Planning Mrpand Erp

Scheduling for the Short-Term

Jit,lean Operations,and the Toyota Production System

Maintenance and Reliability Decisions

Sustainability

Statistical Process Control

Capacity Planning

Supply Chain Modeling

Decision Modeling

Linear Programming Models

Transportation Modeling

Queuing Models

Learning Curves

Modeling with Simulation

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