M6

Question 1

A prediction of future events used for planning purposes is known as

Answer 1

Forecast

Question 2

the process of making management decisions on how to deploy resources to best respond to the demand forecasts is known as

Answer 2

Planning

Question 3

What are the 3 basic categories for forecasting methods?

Answer 3

Judgement
Causal
Time-Series Method

Question 4

What is defined as, providing important clues for making better forecasts.

Answer 4

Forecast Errors

Question 5

T/F- Forecasting at the supply chain level, a firm needs forecasts to coordinate with its customers and suppliers.

Answer 5

True

Question 6

T/F- Forecasting at the process level, output forecasts are needed to design the various processes throughout the organization, including identifying and dealing with in-house bottlenecks

Answer 6

True

Question 7

What are two things managers can do to alleviate the pain of demand swings?

Answer 7

1) Understand the demand pattern the company is facing
2) employ one or more options to alleviate any avoidable swings

Question 8

What demand pattern can be described as the repeated observations of demand for a service or product in their order of occurrence

Answer 8

Time Series

Question 9

What are the 5 basic patterns of most demand time series?

Answer 9

Horizontal
Trend
Seasonal
Cyclical
Random

Question 10

Which time series pattern is described as the fluctuation of data around a constant mean?

Answer 10

Horizontal

Question 11

Which time series pattern is described as the systematic increase or decrease in the mean of the series over time

Answer 11

Trend

Question 12

Which time series pattern is described as a repeatable pattern of increases or decreases in demand, depending on the time of day, week, month, or season

Answer 12

Seasonal

Question 13

Which time series pattern is described as the less predictable gradual increases or decreases in demand over longer periods of time

Answer 13

Cyclical

Question 14

Which time series pattern is described as the unforecastable variation in demand

Answer 14

Random

Question 15

Cyclical patterns arise from what two influences?

Answer 15

1) Business cycle- includes factors that cause economy to go from recession to expansion
2) Service or Product Life Cycle- stages of demand through development to decline
both vary widely on national or international events

Question 16

The process of changing demand patterns using one or more demand options is known as

Answer 16

Demand Management

Question 17

What are some options available when it comes to managing demand?

Answer 17

Complementary products
promotional pricing
appointments/reservations

Question 18

Services or products that have similar resource requirements but different demand cycles are known as

Answer 18

Complementary Products

Question 19

Varying price at the right time for different customer segments to maximize revenues yielded by existing supply capacity is known as

Answer 19

Revenue Management

Question 20

An accumulation of customer orders that a manufacturer has promised for delivery at some future date is known as

Answer 20

Backlog

Question 21

A customer order that cannot be filled when promised or demanded but is filled late is known as

Answer 21

Backorder

Question 22

An order that cannot be satisfied, resulting in a loss of the sale is known as

Answer 22

Stockout

Question 23

What are the two questions that must be answered when making decisions about forecasting>

Answer 23

What to forecast
What type of forecasting technique to select for different items

Question 24

The act of clustering several similar services or products so that forecasts and plans can be made for whole families is known as

Answer 24

Aggregation

Question 25

an individual item or product that has an identifying code and is held in inventory somewhere along the supply chain, such as in a distribution center is known as a

Answer 25

Stock-keeping unit (SKU)

Question 26

What are the two general types of forecasting techniques?

Answer 26

Judgment Methods Quantitative Methods

Question 27

A forecasting method that translates the opinions of managers, expert opinions, consumer surveys, and salesforce estimates into quantitative estimates is known as

Answer 27

Judgement Methods

Question 28

What type of forecasts are used when choosing the Quantitative Method?

Answer 28

Causal Methods Time-series analysis Trend Projection with Regression

Question 29

A quantitative forecasting method that uses historical data on independent variables, such as promotional campaigns, economic conditions, and competitors’ actions, to predict demand is known as a

Answer 29

Causal Method

Question 30

A statistical approach that relies heavily on historical demand data to project the future size of demand and recognizes trends and seasonal patterns is known as a

Answer 30

Time-series analysis

Question 31

A forecasting model that is a hybrid between a time-series technique and the causal method is known as a

Answer 31

Trend projection w/ regression

Question 32

he difference found by subtracting the forecast from actual demand for a given period is known as

Answer 32

Forecast Error

Question 33

What are the 5 basic measures of forecast error?

Answer 33

Cumulative Sum of Forecast Errors (CFE) Mean Squared Error (MSE) Standard Deviation of Errors Mean Absolute Deviation (MAD) Mean Absolute Percent Error (MAPE)

Question 34

A measurement of the total forecast error that assesses the bias in a forecast is known as

Answer 34

Cumulative sum of forecast errors

Question 35

A measurement of the dispersion of forecast errors are known as which THREE forecast errors

Answer 35

MSE- mean squared error standard deviation of errors MAD_ mean absolute deviation

Question 36

A measurement that relates the forecast error to the level of demand and is useful for putting forecast performance in the proper perspective is known as

Answer 36

Mean Absolute Percent Error

Question 37

What are 4 successful examples of judgement methods

Answer 37

Salesforces Estimates Executive Opinion Market Research Delphi Method

Question 38

The forecasts that are compiled from estimates of future demands made periodically by members of a company’s salesforce as known as

Answer 38

Salesforce Estimates

Question 39

A forecasting method in which the opinions, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast is known as

Answer 39

Executive Opinion

Question 40

A systematic approach to determine external consumer interest in a service or product by creating and testing hypotheses through data-gathering surveys is known as

Answer 40

Market Research

Question 41

A process of gaining consensus from a group of experts while maintaining their anonymity is known as

Answer 41

Delphi Method

Question 42

T/F- Linear regressions are one of the best known and most commonly used causal methods

Answer 42

True

Question 43

A causal method in which one variable (the dependent variable) is related to one or more independent variables by a linear equation is known as

Answer 43

Linear Regression

Question 44

The variable that one wants to forecast is known as

Answer 44

Dependent Variable

Question 45

Variables that are assumed to affect the dependent variable and thereby “cause” the results observed in the past are known as

Answer 45

Independent Variables