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