SCM CHAP 5

In the Delphi forecasting method, a group of internal and external experts are surveyed during several rounds in terms of future events and long-term forecasts of demand but the group members do not physically meet.

True

One of the goals of an effective CPFR system is to minimize the negative impacts of the bullwhip effect on supply chains

True

Some important steps involved in implementation of a CPFR process model include,seeking long-term holistic solutions, creating clear accountabilities, and reducing decision cycle time.

True

Some of the benefits of CPFR include strengthening partner relationships, providing an analysis of sales and order forecasts, and allowing collaboration on future requirements and planning.

True

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast

True

If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average.

False

The modern day business environment must deal with a more homogenous consumer base, which has caused the evolution of a more "push" oriented environment where suppliers must focus on manufacturing high volumes of standardized goods and convince consumers to buy their products.

False

According to the text, the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

True

Cause-and-Effect Models can have multiple independent variables.

True

Which of the following is NOT a benefit of CPFR? a. Improved corporate image among regulators b. Integrates planning, forecasting and logistics activities c. Provides analysis of sales and order forecasts d. Provide an analysis of key performance metrics

a. Improved corporate image among regulators

One common Cause-and-Effect Model used is: a. Regression analysis b. Linear Trend Forecast c. Moving Average Forecast d. Mean Absolute Deviation

a. Regression analysis

Inaccurate forecasts can result in negative outcomes like: a. Stockouts and poor responsiveness to market dynamics b. High inventory costs of inventory and increased profits c. Material shortages and decreased costs of obsolescence d. Low inventory costs of inventory and stockouts

a. Stockouts and poor responsiveness to market dynamics

The true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, not from the exchange of forecasting information.

False

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the: a. Bullwhip effect b. Delphi method c. CPFR effect d. Mean deviation

a. Bullwhip effect

The following are all common qualitative forecasting models EXCEPT: a. Jury of Executive Opinion b. Trend Variation c. Delphi Method d. Sales Force Composite

b. Trend Variation

According to the textbook, which of the following is NOT a way to closely match supply and demand? a. Holding high amounts of inventory b. Maintaining a rigid pricing system c. Utilizing overtime d. Hiring temporary workers

b.maintaining a rigid pricing system

Some measures of forecasting accuracy include mean absolute deviation, mean absolute percentage error, and mean squared error. The formula for each is dependent on the forecast error, which is calculated by using the equation: a. Actual demand for period t divided by the forecasted demand for period t b. Actual demand for period t plus the forecasted demand for period t c. Actual demand for period t minus the forecasted demand for period t d. The average of Actual demand for period t and forecasted demand for period t

c. Actual demand for period t minus the forecasted demand for period t

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time: a. Naïve Forecast b. Weighted Moving Average c. Simple Moving Average d. Exponential Smoothing

c. Simple Moving Average

What does the acronym CPFR represent? a. Coordinated planning and forecasting relationships b. Collaborative planning, forecasting, and replenishment c. Centralized purchasing and forecasting relationships d. Collaborative purchasing, forecasting, and receivables

d. Collaborative purchasing, forecasting, and receivables

According to textbook, the top three challenges for CPFR implementation include all of the following except: a. Making organizational and procedural changes b. Trust between supply chain partners c. Cost d. Supplier lead times

d. Supplier lead times