Chapter 4 Forecasting

24 July 2022
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question
4-1.1) Which of the following statements is NOT true regarding‚Äč forecasting? A.Forecasting is exclusively an objective prediction. B.Forecasting may involve taking historical data and projecting them into the future with a mathematical model. C.A forecast is usually classified by the future time horizon that it covers. D.Forecasting is the art and science of predicting future events.
answer
A.Forecasting is exclusively an objective prediction.
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4-1.2) The forecasting time horizon that would typically be easiest to predict for would be the A.medium range. B.short range. C.intermediate range. D.long range.
answer
B.short range.
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4-1.3) A forecast that addresses the business cycle by predicting planning indicators is A.an economic forecast. B.a demand forecast. C.a technological forecast. D.an environmental forecast.
answer
A.an economic forecast.
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4-1.4) A forecast that projects a‚Äč company's sales is A.an environmental forecast. B.an economic forecast. C.a technological forecast. D.a demand forecast.
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D.a demand forecast.
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4-2.1) CPFR is A.‚Äčcollaborative, partner,‚Äč forecasting, and replenishment. B.‚Äčcomplete, planning,‚Äč forecasting, and replenishment. C.‚Äčcollaborative, planning,‚Äč forecasting, and replenishment. D.‚Äčcomplete, partner,‚Äč forecasting, and replenishment.
answer
C.‚Äčcollaborative, planning,‚Äč forecasting, and replenishment.
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4-2.2) The goal of CPFR is to A.create significantly more accurate information that can power the supply chain. B.ensure product innovation. C.determine which model needs to be used to predict future events. D.create good relations with suppliers.
answer
A.create significantly more accurate information that can power the supply chain.
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4-2.3) Which of the following statements is NOT‚Äč true? A.When capacity is‚Äč inadequate, market share can shrink. B.When capacity is‚Äč inadequate, customers can be lost. C.When excess capacity‚Äč exists, cost can increase. D.When excess capacity‚Äč exists, cost can decrease.
answer
D.When excess capacity‚Äč exists, cost can decrease.
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4-3.1) Which of the following is the FIRST step in a forecasting‚Äč system? A.Determine the use of the forecast. B.Select the forecast‚Äč model(s). C.Select the items to be forecasted. D.Determine the time horizon of the forecast.
answer
A.Determine the use of the forecast.
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4-3.2) Which of the following is the FINAL step in a forecasting‚Äč system? A.Make the forecast. B.Validate and implement the results. C.Gather the data needed to make the forecast. D.Select the forecast‚Äč model(s).
answer
B.Validate and implement the results.
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4-3.3) Which of the following is a reality each company faces regarding its forecasting‚Äč system? A.Most forecasting techniques assume there is no underlying stability in the system. B.After automating their predictions using computerized forecasting‚Äč software, firms closely monitor only the product items whose demand is stable. C.Product family forecast are less accurate than individual product forecasts. D.Outside factors that we cannot predict or control often impact the forecast.
answer
D.Outside factors that we cannot predict or control often impact the forecast.
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4-3.4) Which of the following forecasting steps comes directly after determining the time horizon of the‚Äč forecast? A.Gather the data. B.Select the forecasting‚Äč model(s). C.Make the forecast. D.Select the items to be forecasted.
answer
B.Select the forecasting‚Äč model(s).
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4-4.1) Which of the following is a quantitative forecasting‚Äč method? A.jury of executive opinion B.exponential smoothing C.sales force composite D.market survey
answer
B.exponential smoothing
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4-4.2) Which of the following is a qualitative forecasting‚Äč method? A.Delphi method B.linear regression C.naive approach D.trend projection
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A.Delphi method
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4-4.3) Which forecasting model is based upon‚Äč salespersons' estimates of expected‚Äč sales? A.market survey B.jury of executive opinion C.Delphi method D.sales force composite
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D.sales force composite
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4-4.4) Which of the following is NOT a‚Äč time-series model? A.naive approach B.multiple regression C.moving averages D.exponential smoothing
answer
B.multiple regression ‚ÄčTime-series models‚Äč include: naive‚Äč approach, moving‚Äč averages, exponential smoothing and trend projections. Multiple regression is not a‚Äč time-series model.
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4-7.2) A forecasting technique consistently produces a negative tracking signal. This means that A.the MSE will also consistently be negative. B.the forecasting technique consistently‚Äč under-predicts. C.the forecasting technique consistently‚Äč over-predicts. D.the MAPE will also consistently be negative.
answer
C.the forecasting technique consistently‚Äč over-predicts.
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4-7.3) Forecasting that tries a variety of computer models and selects the best one for a particular application is referred as A.focus forecasting. B.jury of executive opinion. C.trend projection. D.adaptive smoothing.
answer
A.focus forecasting.
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4-8.1) Which one of the following statements is NOT true about the forecasting in the service‚Äč sector? A.Detailed forecasts of demand are not needed. B.Forecasting in the service sector presents some unusual challenges. C.Hourly demand forecasts may be necessary. D.Demand patterns are often different from those in‚Äč non-service sectors.
answer
A.Detailed forecasts of demand are not needed.