Deck 8: Forecasting Demand Planning

Question 1

A ________ data pattern is commonly seen an utilized for commodity products:

A) Trend
B) Seasonal
C) Cycle
D) Horizontal
E) Cluster

Answer 1

D

Question 2

__________ is the process of predicting future events.

A) Planning
B) Sales and Operations Planning
C) Sourcing
D) Forecasting
E) Finance

Answer 2

D

Question 3

The type of data pattern that emerges in times of economic fluctuations is:

A) Trend
B) Seasonal
C) Cycle
D) Horizontal
E) Level

Answer 3

C

Question 4

Advantages of quantitative forecasting methods include:

A) Objectivity
B) Responsiveness
C) Includes 'inside' information
D) Expensive
E) b and c

Question 5

When determining future resource needs, factors that should be considered include:

A) Growth of supply chain management
B) Impact of new technologies
C) Competitor actions
D) Existing distribution channels
E) b and c

Question 6

Ways to mitigate the bullwhip effect include:

A) Data sharing
B) Collaborative forecasting
C) Supplier management
D) Independent forecasting
E) a and b

Question 7

An outcome of supply chain partners creating independent forecasts could be:

A) Improved inventory management
B) Improved coordination
C) Bullwhip effect
D) Increased sales
E) a and c

Question 8

The mean and moving average forecasting models are typically best for _________ products:

A) Innovative
B) Mature
C) New
D) Functional
E) None of the above

Question 9

Planning decisions include:

A) Resource scheduling
B) Acquiring new resources
C) Whether to outsource
D) Sales plans
E) a and b

Question 10

Sophisticated and costly forecasting models would be most appropriate for which product:

A) Paper clips
B) Pencils
C) Smartphones
D) Diapers
E) None of the above

Question 11

Examples of quantitative forecasting models include:

A) Time series
B) Delphi
C) Causal
D) Mean
E) a and c

Question 12

Forecasts are more accurate for _________ time horizons:

A) Short
B) Medium
C) Long
D) Annual
E) None of the above

Question 13

The process of influencing demand is called:

A) Sales and Operations Planning
B) CPFR
C) Demand management
D) Forecasting
E) Planning

Question 14

Examples of data patterns that must be considered when forecasting include:

A) Cluster
B) Horizontal
C) Cycle
D) Qualitative
E) b and c

Question 15

__________ forecasts are more accurate than individual forecasts.

A) Qualitative
B) Quantitative
C) Stable
D) Aggregate
E) Causal

Question 16

Market research is an example of ___________ forecasting method:

A) Quantitative
B) Seasonal
C) Jury of executive opinion
D) Causal
E) Qualitative

Question 17

Forecasting impacts the operations function in the following ways:

A) Inventory levels
B) Sources of supply
C) Advertising and promotions
D) Asset acquisition
E) None of the above

Question 18

The process of preparing for future events is__________:

A) Planning
B) Sales and Operations Planning
C) Sourcing
D) Forecasting
E) Finance

Question 19

Forecasts are critical to predicting future events, but they are rarely _______ :

A) Useful
B) Accurate
C) Perfect
D) Quantitative
E) Qualitative

Question 20

__________ analysis measures the relationship between two or more variables on the forecast:

A) Qualitative
B) Quantitative
C) Time series
D) Linear Regression
E) Delphi

Question 21

It is important for all members of a supply chain to develop independent forecasts.

Question 22

Benefits of joint forecasting between supply chain partners include:

A) Risk sharing
B) Improve customer value
C) Higher sales
D) Decrease inventory
E) All of the above

Question 23

Two measures of forecast accuracy include:

A) Mean deviation
B) Mean absolute deviation
C) Mean square error
D) a and c
E) b and c

Question 24

Advertising and promotions are examples of demand management.

Question 25

Forecasting is the process of predicting future events.

Question 26

Benefits of sales and operations planning include:

A) Understanding of trade-offs in an organization
B) Balanced metrics
C) Collaboration
D) All of the above
E) None of the above

Question 27

An example of the impact of forecasting on marketing is the decision to enter a new market.

Question 28

The bullwhip effect is a result of collaborative forecasting and planning.

Question 29

Seasonality and cycles are examples of forecasting data types.

Question 30

The forecasting process cam impact long range and tactical plans.

Question 31

A principle of forecasting is that uncertainty cannot be tolerated.

Question 32

An example of the impact of forecasting on finance is scheduling capacity in the plant.

Question 33

Longer term forecasts are more accurate because a business has more time to adjust the forecast.

Question 34

Aggregate forecasts are more accurate than individual forecasts.

Question 35

______________ is a process by which supply chain functions within an organization collaborate to match supply and demand:

A) Vendor managed inventory
B) Collaborative planning, forecasting, and replenishment
C) Early supplier involvement
D) Sales and operations planning
E) None of the above

Question 36

The planning process allows a business to be prepared for future events.

Question 37

Sharing demand and forecast data with supply chain partners can help mitigate the bullwhip effect.

Question 38

Forecasting and planning are especially important given customers' increasing demands for responsiveness.

Question 39

Joint forecasting between supply chain partners is known as:

A) Vendor managed inventory
B) Collaborative planning, forecasting, and replenishment
C) Early supplier involvement
D) Sales and operations planning
E) None of the above

Question 40

Understanding how new market opportunities and competitors could impact a firm are part of the planning decision process.

Question 41

CPFR is a five step process by which supply chain partners generate joint forecasts.

Question 42

Qualitative forecasting methods have the advantage of being objective and consistent.

Question 43

Determining the accuracy of a forecast is as important as the forecast itself.

Question 44

Qualitative forecasting methods rely heavily on data sets.

Question 45

Quantitative forecasting methods tend to be more accurate than qualitative methods.

Question 46

A horizontal data pattern typically occurs with demand patterns for a new product.

Question 47

When selecting a forecasting model, a key consideration relates to the type of data available.

Question 48

Exponential smoothing allows a forecast to put greater or less weight on certain data points.

Question 49

The Delphi method is an example of a qualitative forecasting method.

Question 50

The ABC Company sells computers. Monthly sales for a six-month period are as follows:
Compute the sales forecast for July using the following approaches:
a. Mean
b. Four month simple moving average
c. Exponential smoothing with an alpha smoothing constant = .70 and a June forecast of 22,000

Question 51

Utilizing the mean forecasting model is best for mature, stable products.

Question 52

When forecasting 'functional' products, it is typically best to invest in a sophisticated model.

Question 53

Responsiveness to changes in the environment is an advantage of qualitative forecasting methods.

Question 54

A time series forecasting model evaluates data points over a period of time.

Question 55

The key idea of regression analysis is the ability to measure the relationship between two or more variables on the forecast.

Question 56

Sales and Operations Planning is a process by which supply chain functions within an organization collaborate to match supply and demand.