Demand Management, Forecasting, and Aggregate Planning MCQ
Service providers invest large amounts of money in training employees because ____.
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They lose business and revenue if they do not meet the service expectations of customers
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The _______ is an extension of the EOQ model when price discounts are allowe
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Quantity discount model
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The _______ is theinventory on-hand needed to satisfy demand during the order lead time perio
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Reorder point
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_______ are inventories created when a firm purchases a quantity large enough to last until the next purchase perio
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Cycle inventories
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“Production is varied to meet demand” defines which type of production planning strategy?
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Chase strategy
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Exception management is in which stage of the collaborative planning, forecasting, and replenishment process?
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Analysis stage
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_______ provides a measure of forecast bias.
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Running sum of forecast error
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The _______ is a measure of the variation in the dependent variable that can be explained by the independent variable.
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Sample coefficient of determination (R2)
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In simple linear regression forecasts, the _______ is a predictor of deman
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Causal variable
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Which of the following is a times series forecasting technique?
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Exponential smoothing forecast
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Which of the following is an associative forecasting technique?
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Linear trend forecast
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_______ is forecasting that uses mathematical models and historical dat
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Quantitative forecasting
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_______ is forecasting that is based on guesswork, intuition, or opinions.
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Qualitative forecasting
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_______ uses several rounds of questionnaires to establish a forecast consensus.
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The Delphi method
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_______ is based on the assumption that historic demand can be used to predict future deman
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A time series forecast
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The _______ department provides projections for the next year as an input to the forecasting process.
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Field sales
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The _______ department’s responsibilities are new product introductions, promotion, and pricing.
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Marketing
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The _______ department’s responsibility is to fill orders, monitor finished-goods inventories, and ensure on-time deliveries.
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Distribution
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The _______ department oversees the procurement of materials, parts, and components for the organization.
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Supply management
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Weighted Moving Average Forecast allows the user to weigh the more recent periods more heavily to take into consideration recent changes in the data .
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True
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Trend Variations is a demand variation caused by gradually ______ movements over time.
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Both a & b
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Tracking Signal used as a running check on the ______ of a forecasting technique.
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Accuracy
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Time Series Forecasts based on the assumption that the future is an extension of the past; thus, historical demand can be used to predict future demand .
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True
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Smoothing Constant used in the exponential smoothing forecast. The weight must be between _______ .
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0 and 1
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Which technique used recent historical demand to generate a forecast and is fairly reliable when the demand is stable over time ?
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Simple Moving Average Forecast
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Linear regression is used to identify the causal relationship and the forecast equation .
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True
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Seasonal Variations is a demand patterns that repeat over a consistent interval such as ______ , or seasons
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All of these
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Sample Correlation Coefficients range from _____ .
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−1 to +1
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Measure of the variation in the dependent variable that can be explained by the independent variable is known as ______ .
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Sample Coefficient of Determination
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Sales Force Estimates provide estimates of future customer demand.
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True
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Running Sum of Forecast Error provides a measure of forecast bias .
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True
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Random variations are what cause even the best forecasts to contain errors.
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True
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Qualitative forecasting Techniques are based on guesswork, intuition, or opinions, and are generally used when data are unavailable or too old to be of much use .
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True
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Production planning strategies is a sets of activities in operations management for meeting the aggregate plan .
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Production Planning Strategies
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Product family consists of different products that share similar _______ .
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All of these
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Multiple Regression Forecasting used when there are several independent variables used together, to predict the dependent variable .
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True
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This method provides an estimate of the magnitude of forecast error is known as _____ .
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Mean Absolute Percentage Error
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Which method provides an estimate of the magnitude of forecast error. The monthly absolute forecast error divided by actual demand is summed,
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Mean Absolute Percentage Error
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Which method is used for comparing forecasting techniques; it averages the absolute value of the errors over a given period of time ?
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Mean Absolute Deviation
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A linear regression forecast, where one variable is time and the other variable is the actual data is known as ______ .
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Linear Trend Forecast
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Which technique uses a group of senior executives who are knowledgeable about the firm’s products ?
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Jury of Executive Opinion
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Forecast error simply is the difference between the ______ and the forecast for that period.
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Both a & b
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A type of forecast error that occurs when a forecast has a tendency to be either consistently higher or lower than the actual demand is known as _______ .
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Forecast Bias
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Which forecast approach requires fewer calculations than the weighted moving average forecast because only two data points are needed ?
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Exponential Smoothing Forecast
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The process that balances customer requirements with supply chain capabilities is known as ______ .
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Demand Management
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Cyclical Variation occurs every several years and is influenced by macroeconomic and political factors.
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True
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Contingent Workers part-time and _______ .
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Temporary workers
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Contingency Plans Insurance-type activities that are performed to _____ and its customers for times when actual demand varies significantly from the forecast
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Both a & b
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Consumer Surveys focus groups to gather consumer opinions of existing products and new product ideas to generate a forecast
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True
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Collaborative Planning, Forecasting, and Replenishment allows for continuous _____ of inventory and upcoming requirements, resulting in less safety stock .
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Updating
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A predictor of the dependent variable demand is known as _____
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Causal Variable
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Business cycles in the United States have been affected by various global events.
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True
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Which techniques assume that one or more factors (independent variables) are related to demand.
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Associative Forecasts
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Aggregate Planning Planning that occurs when firms consider their _______ business plans
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Long-term
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