32 Questions
Why are airlines interested in accurately forecasting the number of meals needed for each flight?
To improve operating efficiency
What is the primary reason for airlines to invest in forecasting the number of meals needed?
To accurately estimate the demand for goods and services
How does accurate forecasting of meals help in reducing costs for airlines?
By accurately estimating the demand for goods and services
What can be achieved through effective planning, organizing, and accurate forecasting for airline meal services?
Cost reduction and improved operating efficiency
How do planning, organizing, and accurate forecasting relate to each other in the context of airline meal services?
They overlap and interrelate, making control easier
How does accurate forecasting contribute to improving operating efficiency in airline meal services?
By improving the accuracy in estimating meal demand
In exponential smoothing, what type of forecasting technique is it?
Moving average forecasting
What does the smoothing constant, α, do in exponential smoothing?
It determines the error correction factor
What is the range in which the value of α is often kept for smoothing the forecast?
0.005 to 0.30
How is the forecast calculated in simple exponential smoothing?
$Ft = Ft-1 + \alpha(Dt-1 - Ft-1)$
What type of effect does simple exponential smoothing make no explicit adjustment for?
Trend effect
What determines whether the correction in simple exponential smoothing will be positive or negative?
Demand for last period
What does adjusted exponential smoothing take into account that simple exponential smoothing does not?
Trend effects
In exponential smoothing, what is used to compute the forecast Ft?
$\alpha$ value
What kind of data carries more weight in exponential smoothing?
Recent data carry more weight in the moving average.
What type of forecasting technique is exponential smoothing?
Quantitative forecasting
What is the process of predicting a future event based on historical data?
Forecasting
Why are forecasts almost always wrong?
Unpredictable future events
Which department depends on forecasts to project cash flows and capital requirements?
Finance
What is the underlying basis for all business decisions?
Forecasting
What does accurate forecasting contribute to in the context of airline meal services?
Enhancing operating efficiency
What do departments throughout the organization depend on forecasts for?
Formulating and executing plans
What is the typical time range for a short-range forecast?
3 months to 2 years
Which method of qualitative forecasting involves soliciting input from customers about their future purchasing plans?
Market Research/Survey
What method of qualitative forecasting aims to eliminate the influence of dominant individuals in a group?
Delphi Method
Which type of forecasting method is often used for new product planning and system design?
Executive Judgment
What is the typical time range for a long-range forecast?
> 2 years
Which quantitative forecasting method does not consider any other factors besides the historical data in making forecasts?
Naive Method
What is the primary focus of short-range forecasts?
Worker assignments
Which method of qualitative forecasting involves pooling sales estimates from regional salespersons at district and national levels?
Sales Force Composite
What is the focus of medium-range forecasts?
Sales/production planning
What is the main objective of the Delphi Method in forecasting?
To eliminate the effects of dominant individuals in a group
Test your understanding of demand forecasting for in-flight meals in the context of operations management. Explore key factors and considerations related to providing meals on airline flights, including budgeting and meal cost per passenger.
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