Demand Forecasting Methods MCQ

1. The ______ is determined by minimizing the total annual costs, which is the sum of the total annual setup and holding costs.

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2. ______ is a system in which optimum levels of inventory are determined and updated continuously across the supply chain network based on the demand variability, lead times, delays, and service levels at the higher levels in the supply chain.

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3. ______ is a system that accounts for inventory cost and enables companies to recognize the excessive costs associated with forward buying when trade deals and quantity discounts are offered.

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4. ______ is a system in which each supply chain partner sequentially forecasts demand, invariably lead to the bullwhip effect.

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5. ______ is the cost incurred when the demand for a product cannot be met because of a shortage of inventory.

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6. ______ is the cycle time needed to match our production rate to demand for the product.

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7. ______ is a quantitative method in which time-ordered sequence of observations is taken at regular intervals over a period of time.

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8. ______ is the average time it takes from the submission of a customer’s purchase order until the company delivers the order.

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9. Which of the following is the cost of changing over production from one item to another?

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10. ______ is a function that enables production to continue temporarily while the production problem at a given process stage is resolved.

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11. ______ is the extra inventory a company holds to cope with unexpected shortages.

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12. ______ is the result of a change in consumer demand that causes a company in a supply chain in close proximity to the consumer to order more goods from the immediate upstream supplier to meet the demand.

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13. ______ is a process when an upstream supply chain member such as a manufacturer sells directly to the final consumer, bypassing distributors and retailers.

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14. ______ is money paid to an upstream supplier for materials or goods purchased.

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15. ______ is inventory purchased in advance to guard against uncertainties in pricing.

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16. ______ is inventory held in excess of a firm’s cycle stock to meet the expected increase in demand.

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17. ______ is counting a random sample or subset of inventory in stock in a particular location on a specific day to verify that inventory accuracy rates are not too far off target.

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18. _____ are administrative costs related to determining an order quantity, preparing purchase invoices, inspecting goods received for quality and quantity, and moving goods for temporary storage.

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19. ______ is a pattern in which demand either increases or decreases in successive periods.

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20. ______ is the proportion of variation explained by regression.

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21. ______ is a pattern in which the level of demand increases initially and levels off in the long term.

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22. ______ is the intuition or the experienced judgment of others.

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23. ______ is the average of the sum of the squared differences between the actual and the forecasted demand values.

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24. ______ is a qualitative method that attempts to eliminate or minimize the problem of bias in the opinion of a single expert by using a panel of experts to generate forecasts.

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25. ______ is a variable that when changed causes an effect on a dependent variable.

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26. ______ is a forecasting method in which it is assumed that the demand in the next period will be the same as it is in the current period.

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27. ______ is a pattern in which demand either increases or decreases irregularly.

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28. A ______ item is unrelated to the demand of any other product or item.

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29. ______ is a measure of the difference between the mean Y and the predicted or computed value of Y using regression.

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30. A ______ item is a part or component of an end product.

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31. ______ is a short-term time series forecasting method in which the average of the most recent demand periods are used to predict demand in the future period.

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32. ______ is a method used to forecast demand for a new product or service that is similar to existing products.

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33. Weighted moving average is a ______

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34. Trend-adjusted exponential smoothing is a variation of simple exponential smoothing that includes a trend factor

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35. The long-term movement (increasing or decreasing) of data over time is known as

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36. ______ measure of the variation of the actual Y values around the mean Y Total sum of squares

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37. A sequence of regular intervals over a period of time is known as

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38. Standard error of the estimate is a measure of the variation of the actual (observed) y values from the predicted y values ( ŷi)

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39. Which method is used for calculating seasonal indices by dividing the average demand for each season by the average total demand to arrive at the seasonal indices for each month?

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40. Seasonal indices is a factors that capture the seasonal contribution to demand in each period _____

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41. A measure of the difference between the mean Y and the predicted or computed value of Y using regression is known as

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42. Quantitative method is a forecasting method based on measurable, historical data and evidence

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43. A forecasting method based on intuition, judgment, or informed opinions of experts in the industry, used if no measurable, reliable, historical, or statistical data are available is known as

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44. A pattern in which demand either increases or decreases irregularly is known as

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45. ______ is a forecasting method in which it is assumed that the demand in the next period will be the same as it is in the current period

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46. Multiplicative model is a model of combining trends and _______

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47. Multiple linear regression is a technique that models the relationship between a dependent variable and _____

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48. Moving average most recent demand periods are used to predict demand in the future period

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49. Mean squared error is the ______ between the actual and the forecasted demand values

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50. Mean squared error is the average of the sum of the squared differences between the actual and the forecasted demand values

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51. A measure of the absolute error as a percentage of the actual demand is known as

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52. MAD stands for (in operational management)

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53. A method in which the seasonal indices are expressed as percentages and the combined forecast is expressed as percentage adjustments of the underlying linear trend is known as

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54. Linear trend is a pattern in which demand _____ in successive periods

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55. Linear regression analysis models the relationship between _________ And __________

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56. Why is the Least-squares method used ?

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57. Number of unemployment insurance claims, inventory changes, and stock prices used to track cyclical fluctuations is known as

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58. Irregular variations caused by _______

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59. predictor variable is also known as

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60. An item whose demand is unrelated to the demand of any other product or item is known as

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61. Which method is used to forecast demand for a new product or service that is similar to existing products.

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62. Average of all previous observations that gives progressively less weight to older observations.This Statement is true for

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63. _______ is an examples of nonlinear trends

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64. The intuition or the experienced judgment of experts is also called

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65. Define Error sum of squares

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66. In dependent or predicted variable is a variable that is affected by an independent or predictor variable

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67. Demand for a part or component that depends on the demand for the end product is known as

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68. ______ is a qualitative method that attempts to eliminate or minimize the problem of bias in the opinion of a single expert by using a panel of experts to generate forecasts

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69. Damped trend is a pattern in which the level of demand ______ and levels off in the long term

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70. wave-like oscillations in demand about the trend line caused by changes in economic or business cycles.This statement is best for

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71. The sum of the differences between the actual and the forecasted demand values is known as

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72. Correlation coefficient value between _____ and _____

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73. Define Coefficient of determination

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74. Which method is used for calculating seasonal indices in which moving averages for each season are centered

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75. Which model is used to combine trends and seasonal components in which the seasonal indices are added to the projected trend?

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