Podcast
Questions and Answers
Demand forecasts are likely to be most accurate for which of the following items?
Demand forecasts are likely to be most accurate for which of the following items?
- All cars (correct)
- All full-size cars
- All hybrid models
- All SUV models
Basing a demand forecast for major kitchen appliances on housing start data is an example of which of the following?
Basing a demand forecast for major kitchen appliances on housing start data is an example of which of the following?
- Time-series forecasting
- Exponential forecasting
- Expert judgment forecasting
- Associative forecasting (correct)
Which of the following statements correctly identifies the purpose of the weights in a weighted moving average?
Which of the following statements correctly identifies the purpose of the weights in a weighted moving average?
- To be more sensitive to recent trends in demand (correct)
- To put more emphasis on long-term influences on demand
- To make data gathering and forecasting calculations simpler
- To take account of mean average deviation
company wants to calculate the tracking signal for a certain product. Over a 4-month period, the forecast errors were 0.87, 1.38, -1.48, and -1.36. The resulting MAD is 1.27 units. What is the tracking signal?
company wants to calculate the tracking signal for a certain product. Over a 4-month period, the forecast errors were 0.87, 1.38, -1.48, and -1.36. The resulting MAD is 1.27 units. What is the tracking signal?
A statistical forecast should be:
A statistical forecast should be:
If an organization has the following sales and forecasting results over a three-month period, what is the mean squared error?
(Assume a smoothing constant of 0.3 and exponential forecast rounding to the nearest whole unit.)
• April: Actual sales of 20 units, exponential forecast of 18 units
• May: Actual sales of 16 units, exponential forecast of 19 units
• June: Actual sales of 15 units, exponential forecast of 18 units
If an organization has the following sales and forecasting results over a three-month period, what is the mean squared error? (Assume a smoothing constant of 0.3 and exponential forecast rounding to the nearest whole unit.) • April: Actual sales of 20 units, exponential forecast of 18 units • May: Actual sales of 16 units, exponential forecast of 19 units • June: Actual sales of 15 units, exponential forecast of 18 units
Which of the following conditions contributes to the supply chain phenomenon known as the bullwhip effect?
Which of the following conditions contributes to the supply chain phenomenon known as the bullwhip effect?
For a three-month period, the forecast for demand for each month was 184.2, 178.6, and 170.5 units respectively. For the same period, the demand was 192, 187, and 195 units. What is the cumulative forecast error?
For a three-month period, the forecast for demand for each month was 184.2, 178.6, and 170.5 units respectively. For the same period, the demand was 192, 187, and 195 units. What is the cumulative forecast error?
For an innovative product introduction at a new organization, which of the following would provide the best guidance for how many items to produce initially?
For an innovative product introduction at a new organization, which of the following would provide the best guidance for how many items to produce initially?
Which of the following forms the basis for a naive demand forecast?
Which of the following forms the basis for a naive demand forecast?
A demand forecast determined by a panel of all the salespeople in an organization may reach an exaggerated, false conclusion due to which of the following situations?
A demand forecast determined by a panel of all the salespeople in an organization may reach an exaggerated, false conclusion due to which of the following situations?
For one product, one standard deviation (SD) in units equals 3.5 units. A 99.50 percent customer service level is desired. This is a safety factor of 2.57 for SD or of 3.20 for mean absolute deviation. How many units should the organization hold in safety stock (round up)?
For one product, one standard deviation (SD) in units equals 3.5 units. A 99.50 percent customer service level is desired. This is a safety factor of 2.57 for SD or of 3.20 for mean absolute deviation. How many units should the organization hold in safety stock (round up)?
An organization forecasts demand for a given month to be 148.86 units. Actual demand is 176 units. What is the forecast accuracy expressed as a percentage?
An organization forecasts demand for a given month to be 148.86 units. Actual demand is 176 units. What is the forecast accuracy expressed as a percentage?
Which of the following is a situation in which an exponential smoothing technique should have its smoothing constant reevaluated?
Which of the following is a situation in which an exponential smoothing technique should have its smoothing constant reevaluated?
What are time-series models used in?
What are time-series models used in?
Which of the following statements identifies a beneficial result of including more periods in a moving average?
Which of the following statements identifies a beneficial result of including more periods in a moving average?
The sum of the demand for an item for the past 12 months is 960 units. The demand in May for the past three years was 92 units, 91 units, and 99 units. What is the seasonal index for May?
The sum of the demand for an item for the past 12 months is 960 units. The demand in May for the past three years was 92 units, 91 units, and 99 units. What is the seasonal index for May?
