331- Chapter 4

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks? A) yesterday's forecasted attendance and yesterday's actual attendance B) yesterday's actual attendance and today's forecasted attendance C) yesterday's forecasted attendance and today's forecasted attendance D) yesterday's actual attendance and last year's actual attendance E) yesterday's forecasted attendance and the year-to-date average daily forecast error

A

A skeptical manager asks what long-range forecasts can be used for. Give her three possible uses/purposes

Any three of: planning for new products, capital expenditures, facility location or expansion, and research and development.

A skeptical manager asks what short-range forecasts can be used for. Give her three possible uses/purposes.

Any three of: planning purchasing, job scheduling, workforce levels, job assignments, and production levels

A forecast with a time horizon of about 3 months to 3 years is typically called a: A) long-range forecast. B) medium-range forecast. C) short-range forecast. D) weather forecast. E) strategic forecast.

B

As compared to long-range forecasts, short-range forecasts: A) are less accurate. B) deal with less comprehensive issues supporting management decisions. C) employ similar methodologies. D) all of the above E) none of the above

B

Short-range forecasts tends to ________ longer-range forecasts. A) be less accurate than B) be more accurate than C) have about the same level of accuracy as D) employ the same methodologies as E) deal with more comprehensive issues than

B

The three major types of forecasts used by organizations in planning future operations are: A) strategic, tactical, and operational. B) economic, technological, and demand. C) exponential smoothing, Delphi, and regression. D) causal, time-series, and seasonal. E) departmental, organizational, and territorial

B

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a: A) short-range time horizon. B) medium-range time horizon. C) long-range time horizon. D) naive method, because there is no data history. E) trend extrapolation.

C

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes? A) job scheduling B) production levels C) cash budgeting D) capital expenditures E) purchasing

D

One use of short-range forecasts is to determine: A) planning for new products. B) capital expenditures. C) research and development plans. D) facility location. E) job assignments.

E

________ forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators

Economic

Describe the three forecasting time horizons and their use.

Forecasting time horizons are: short range-generally less than three months, used for planning purchasing, job scheduling, workforce levels, job assignments, and production levels; medium range-usually from three months up to three years, used for sales planning, production planning and budgeting, cash budgeting, analysis of various operating plans; long range-usually three years or more, used for planning for new products, capital expenditures, facility location or expansion, and R&D

List and briefly describe the three major types of forecasts that organizations use in planning future operations

The three types are economic, technological, and demand. Economic forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators. Technological forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment. Demand forecasts are projections of demand for a company's products or services

Demand forecasts serve as inputs to financial, marketing, and personnel planning

True

Forecasts are usually classified by time horizon into which three categories? A) short-range, medium-range, and long-range B) finance/accounting, marketing, and operations C) strategic, tactical, and operational D) exponential smoothing, regression, and time series E) departmental, organizational, and industrial

A

________ forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment.

Technological

Forecasts may be influenced by a product's position in its life cycle.

True