Chapter 4

Which of the following is the FIRST step in a forecasting program? a. Determining the use of the forecast b. Select the forecast model(s) c. Determine the time horizon of the forecast d. Select the items to be forecasted

a. Determine the use of the forecast

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 capacity is inadequate, market share can shrink d. When excess capacity exists, cost can increase

a. When excess capacity exists, cost can decrease

Which of the following is a quantitative forecasting method? a. exponential smoothing b. market survey c. jury of executive opinion d. sales force composite

a. exponential smoothing

Which of the following forecasting steps comes directly after determining the time horizon of the forecast? a. Select the items to be forecasted b. Make the forecast c. Select the forecasting model(s) d. Gather the data

c. Select the forecasting model(s)

CPFR is a. complete, planning, forecasting, and replenishment b. collaborative, partner, forecasting, and replenishment c. collaborative, planning, forecasting, and replenishment d. complete, partner, forecasting, and replenishment

c. collaborative, planning, forecasting, and replenishment

Which forecasting method considers several variables that are related to the variable being predicted? a. simple regression b. exponential smoothing c. multiple regression d. weighted moving average

c. multiple regression

What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? a. cycle b. trend c. seasonality d. random variation

c. seasonality

Which forecasting model is based upon salespersons' estimates of expected sales? a. Delphi method b. Market survey c. Jury of executive opinion d. Sales force composite

d. Sales force composite

A forecast that projects a company's sales is a. an economic forecast b. an environmental forecast c. a technological forecast d. a demand forecast

d. demand forecast

Which of the following statements is NOT true about the forecasting in the service sector? a. forecasting in the service sector presents some unusual challenges b. demand patterns are often different from those in non-service sectors c. hourly demand forecasts may be necessary d. detailed forecasts of demand are not needed

d. detailed forecasts of demand are not needed

A tracking signal a. cannot be used with exponential smoothing b. that is negative indicates that demand is greater than the forecast 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

d. is a measurement of how well a forecast is predicting actual values

The forecasting time horizon that would typically be easiest to predict for would be the a. medium range b. intermediate range c. long range d. short range

d. short range