Podcast
Questions and Answers
Which time horizon refers to a period in which capacity can be completely changed and new resources can be added?
Which time horizon refers to a period in which capacity can be completely changed and new resources can be added?
Why do organizations forecast sales?
Why do organizations forecast sales?
Which time horizon typically covers a week or a month?
Which time horizon typically covers a week or a month?
What is the aim of forecasting and capacity planning?
What is the aim of forecasting and capacity planning?
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Which time horizon is in between short term and long term?
Which time horizon is in between short term and long term?
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Which business has a long term time horizon of 30 years?
Which business has a long term time horizon of 30 years?
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According to the text, forecasting is difficult because of which of the following reasons?
According to the text, forecasting is difficult because of which of the following reasons?
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According to the text, what are the consequences of poor forecasts?
According to the text, what are the consequences of poor forecasts?
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What is the main purpose of forecasting?
What is the main purpose of forecasting?
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According to the text, which statement about forecasting models is true?
According to the text, which statement about forecasting models is true?
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What are the steps in the forecasting process?
What are the steps in the forecasting process?
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Which type of forecasting method is based on human judgement and opinions?
Which type of forecasting method is based on human judgement and opinions?
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Which of the following is NOT a quantitative forecasting method?
Which of the following is NOT a quantitative forecasting method?
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Which forecasting technique gives more weight to the most recent data?
Which forecasting technique gives more weight to the most recent data?
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Which forecasting technique smoothes both the level and trend of the data?
Which forecasting technique smoothes both the level and trend of the data?
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Which forecasting technique smoothes the level, trend, and seasonal factors of the data?
Which forecasting technique smoothes the level, trend, and seasonal factors of the data?
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What is the definition of capacity in the context of capacity planning?
What is the definition of capacity in the context of capacity planning?
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What is the formula for capacity utilization?
What is the formula for capacity utilization?
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Which of the following best describes the definition of takt time?
Which of the following best describes the definition of takt time?
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What is the formula to calculate takt time?
What is the formula to calculate takt time?
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If there are 5 working days in a week, 2 shifts per day with 8 hours per shift, and a 1-hour allowance per shift, what is the net available time to work?
If there are 5 working days in a week, 2 shifts per day with 8 hours per shift, and a 1-hour allowance per shift, what is the net available time to work?
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If the customer demand is 120 parts per week, what is the takt time in minutes?
If the customer demand is 120 parts per week, what is the takt time in minutes?
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What does operator flexibility refer to in the context of takt time?
What does operator flexibility refer to in the context of takt time?
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What is the work content after smoothing to takt time?
What is the work content after smoothing to takt time?
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According to the text, what is the formula for Economic Order Quantity (EOQ)?
According to the text, what is the formula for Economic Order Quantity (EOQ)?
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What are the costs associated with holding stock (Ch)?
What are the costs associated with holding stock (Ch)?
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What is the formula for Total Cost of Inventory (Ct)?
What is the formula for Total Cost of Inventory (Ct)?
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What is the purpose of the Re-order Level in inventory management?
What is the purpose of the Re-order Level in inventory management?
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What are some real-world 'adaptations' in inventory management?
What are some real-world 'adaptations' in inventory management?
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What are some criticisms of the EOQ / EBQ optima?
What are some criticisms of the EOQ / EBQ optima?
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Study Notes
Factory Operations and Production Planning
- Time horizons in production planning include short term, long term, and medium term.
- Short term planning involves fixed capacity and resources, typically for a week or a month.
- Long term planning allows for complete changes in capacity and resources, typically for more than one year.
- Medium term planning falls in between short and long term planning and involves flexing current resources.
- Different businesses have different time horizons for their planning, based on their industry.
- Forecasting and capacity planning are important for making supply decisions and carrying out various planning activities.
- Forecasting helps in demand and inventory planning, while capacity planning involves production and distribution planning.
- Forecasting is challenging and often inaccurate, with two-thirds of sales forecasts having a margin of error exceeding 25%.
- Poor forecasts can lead to excess inventory or poor availability of products, causing financial and logistical issues.
- Improving the match between supply and demand can be achieved through communication, collaboration, and robust baseline forecasting.
- Integrated cross-functional planning is necessary for aligning demand and supply planning processes across different functions.
- Capacity planning involves determining the maximum output rate that can be achieved by a facility and reconciling customer demand with input resources.
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Description
Test your knowledge of forecasting methods and statistical techniques used in data analysis. This quiz covers qualitative and quantitative methods, including executive opinion, market research, weighted moving average, exponential smoothing, linear regression, and more. See how well you understand the importance of relevant data in forecasting accuracy.
