Forecast methods based on judgment, opinion, past experiences, or best guesses are known as
___________ methods.
a. quantitative
b. qualitative
c. time series
d. regression correct answers b. qualitative
Regression forecasting methods relate _________to other factors that cause demand behav...
Chapter 12 MC || with Complete Solutions.
Forecast methods based on judgment, opinion, past experiences, or best guesses are known as
___________ methods.
a. quantitative
b. qualitative
c. time series
d. regression correct answers b. qualitative
Regression forecasting methods relate _________to other factors that cause demand behavior.
a) Supply
b) Demand
c) Time
d) Money
e) Efficiency correct answers b
The _______ method uses demand in the first period to forecast demand in the next period.
a) naïve
b) moving average
c) exponential smoothing.
d) linear trend correct answers A
The _________________ forecast method consists of an exponentially smoothed forecast with a
trend
adjustment factor added to it.
a) Exponentially smoothed
b) Adjusted exponentially smoothed
c) Time series
d) Moving average correct answers B
The per period average of cumulative error is called
a) cumulative forecast variation.
b) absolute error.
c) average error.
d) noise. correct answers C
Selecting the type of forecasting method to use depends on
a. the time frame of the forecast.
b. the behavior of demand and demand patterns.
c. the causes of demand behavior.
d. all of the above. correct answers D
A long-range forecast would normally not be used to
a. design the supply chain.
b. implement strategic programs.
c. determine production schedules.
, d. plan new products for changing markets correct answers C
Which of the following is not a type of predictable demand behavior?
a. trend
b. random variation
c. cycle
d. seasonal pattern correct answers B
A ___________ is an up-and-down movement in demand that repeats itself over a lengthy time
period
of more than a year.
a. trend
b. seasonal pattern
c. random variation
d. cycle correct answers D
A qualitative procedure used to develop a consensus forecast is known as
a. exponential smoothing.
b. regression methods.
c. the Delphi technique.
d. naïve forecasting. correct answers C
A forecast where the current period's demand is used as the next period's forecast is known as a
a. moving average forecast.
b. naïve forecast.
c. weighted moving average forecast.
d. Delphi forecast. correct answers B
The sum of the weights in a weighted moving average forecast
a. must equal the number of periods being averaged.
b. must equal 1.00.
c. must be less than 1.00.
d. must be greater than 1.00. correct answers B
An exponential smoothing forecasting technique requires all of the following except
a. the forecast for the current period.
b. the actual demand for the current period.
c. a smoothing constant.
d. large amounts of historical demand data. correct answers D
The smoothing constant, α, in the exponential smoothing forecast
a. must always be a value greater than 1.0.
b. must always be a value less than 0.10.
c. must be a value between 0.0 and 1.0.
d. should be equal to the time frame for the forecast. correct answers C
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