Content Quiz 2

Qualitative forecasts are __________ while quantitative forecasts are ____________. Numerical; Numerical Judgements; Subjective Subjective; Numerical Numerical; Subjective

Subjective; Numerical

What type of forecast should be used for strategy, sourcing and location desires? independent tactical strategic operational

strategic

Which forecasting method incorporates independent variables other than time to predict future demand? Causal relationships (models) exponential smoothing linear regression with trend weighted moving average

Causal relationship (models)

A forecast method which generates a higher overall MAD is better.

False

Longer averaging periods (bigger N) included in the simple moving average can enable a quicker response to the recent demand change.

False

Simple exponential smoothing can be used to generate forecasts for demand with trend.

False

When choosing weights for a weighted moving average, the general rule states that the most recent periods should get the _____________ weighting. Lowest, Highest, Average, Equal

Highest

Tactical forecasts are _________ term, while strategic forecasts are _________ term. Short; medium and long Medium; long Short and medium; long Short; long

Short; medium and long

When you are trying to determine whether a forecast is keeping pace with changes in demand, you should use which measure of forecast errors? RSFE, Tracking signal, MAD

Tracking signal

Lower alpha used in the simple exponential smoothing forecasting method can enable a smoother forecast with less severe peaks and valleys.

True

To deseasonalize the demand and find out the trend component in the demand pattern, one should divide the past demand data by seasonal factors.

True

When a consistent mistake is made in a forecast, this is classified as _________ error. calculated bias forecast random

bias

Which of the following is not an example of a qualitative forecasting technique? historical analogy market research causal methods panel consensus

causal methods

Which measurement of error measures the dispersion of some observed value from some expected value? tracking signal mean absolute deviation average demand running sum of forecast demand

mean absolute deviation

Which of the following is not a component of demand? random trend planned seasonal

planned

When deciding which forecast model to use, a firm should consider all of the following except: forecasting budget accuracy required time horizon weather

weather