SCM 186: Chapter 4 Connect

Which forecast error measure is probably the easiest to​ interpret?

*A. MAPE* B. MAD C. MSE D. MD

Which of the following is the FINAL step in a forecasting​ system?

*A. Validate and implement the results.* B. Make the forecast. C. Gather the data needed to make the forecast. D. Select the forecast​ model(s).

Which of the following statements is NOT​ true?

*A. When excess capacity​ exists, cost can decrease.* B. When capacity is​ inadequate, customers can be lost. C. When excess capacity​ exists, cost can increase. D. When capacity is​ inadequate, market share can shrink.

A forecast that addresses the business cycle by predicting planning indicators is

*A. an economic forecast.* B. a demand forecast. C. an environmental forecast. D. a technological forecast.

Anthony​ Perez's primary statistical tool for revenue management at the Orlando Magic is

*A. multiple regression.* B. linear programming. C. exponential smoothing. D. trend and seasonal indices. E. linear regression.

Which forecasting model is based upon​ salespersons' estimates of expected​ sales?

*A. sales force composite* B. Delphi method C. jury of executive opinion D. market survey

With regard to a​ regression-based forecast, the standard error of the estimate gives a measure of

*A. the variability around the regression line.* B. the maximum error of the forecast. C. the time period for which the forecast is valid. D. the time required to derive the forecast equation.

Which of the following is the FIRST step in a forecasting​ system?

A. Determine the time horizon of the forecast. *B. Determine the use of the forecast.* C. Select the forecast​ model(s). D. Select the items to be forecasted.

Which of the following statements is NOT true regarding​ forecasting?

A. Forecasting is the art and science of predicting future events. B. A forecast is usually classified by the future time horizon that it covers. *C. Forecasting is exclusively an objective prediction.* D. Forecasting may involve taking historical data and projecting them into the future with a mathematical model.

Which of the following forecasting steps comes directly after determining the time horizon of the​ forecast?

A. Gather the data. B. Make the forecast. C. Select the items to be forecasted. *D. Select the forecasting​ model(s).*

Which one of the following statements is NOT true about the forecasting in the service​ sector?

A. Hourly demand forecasts may be necessary. B. Demand patterns are often different from those in​ non-service sectors. C. Forecasting in the service sector presents some unusual challenges. *D. Detailed forecasts of demand are not needed.*

Which of the following is a reality each company faces regarding its forecasting​ system?

A. Product family forecast are less accurate than individual product forecasts. B. After automating their predictions using computerized forecasting​ software, firms closely monitor only the product items whose demand is stable. C. Most forecasting techniques assume there is no underlying stability in the system. *D. Outside factors that we cannot predict or control often impact the forecast.*

A forecast that projects a​ company's sales is

A. a technological forecast. B. an economic forecast. *C. a demand forecast.* D. an environmental forecast.

A consistent tendency for forecasts to be greater or less than the actual values is called​ ________ error.

A. a trend B. an unbalanced *C. a bias* D. an extreme

CPFR is

A. collaborative, partner,​ forecasting, and replenishment. B. complete, planning,​ forecasting, and replenishment. C. complete, partner,​ forecasting, and replenishment. *D. collaborative, planning,​ forecasting, and replenishment.*

The goal of CPFR is to

A. determine which model needs to be used to predict future events. B. create good relations with suppliers. *C. create significantly more accurate information that can power the supply chain.* D. ensure product innovation.

Forecasting that tries a variety of computer models and selects the best one for a particular application is referred as

A. jury of executive opinion. B. adaptive smoothing. *C. focus forecasting.* D. trend projection.

Which of the following is a qualitative forecasting​ method?

A. linear regression B. naive approach *C. Delphi method* D. trend projection

Which of the following is a quantitative forecasting​ method?

A. market survey B. jury of executive opinion C. sales force composite *D. exponential smoothing*

The forecasting time horizon that would typically be easiest to predict for would be the

A. medium range. B. long range. *C. short range.* D. intermediate range.

Which of the following is NOT a​ time-series model?

A. naive approach B. exponential smoothing *C. multiple regression* D. moving averages

A tracking signal

A. that is negative indicates that demand is greater than the forecast. B. cannot be used with exponential smoothing. C. is computed as the mean absolute deviation​ (MAD) divided by the running sum of the forecast errors​ (RSFE). *D. is a measurement of how well a forecast is predicting actual values.*

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​ over-predicts.* C. the MAPE will also consistently be negative. D. the forecasting technique consistently​ under-predicts.

What program is used to determine​ employee's bonuses?

A. time series B. regression *C. weighted moving averages* D. exponential smoothing