Question 1

The result of each stage in the supply chain making its own separate forecast is

Accepted Answer

A)   an accurate forecast.
B)   a more accurate forecast.
C)   a match between supply and demand.
D)   a mismatch between supply and demand.
E)   none of the aboveF) B) and D)
G) B) and C)

Question 2

Time series forecasting methods are most appropriate when

Accepted Answer

A)   there is little historical data available.
B)   the basic demand pattern varies significantly from one year to the next.
C)   the basic demand pattern does not vary significantly from one year to the next.
D)   experts have critical market intelligence.
E)   forecasting demand several years into the future.F) A) and B)
G) A) and C)

Question 3

The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next.

Accepted Answer

A)   MAD
B)   MSE
C)   MKE
D)   MAPEE) All of the above
F) None of the above

Question 4

In general,the further up the supply chain a company is (or the further they are from the consumer) ,

Accepted Answer

A)   the greater the distortion of information they receive.
B)   the smaller the distortion of information they receive.
C)   the information they receive is more accurate.
D)   the information they receive is more useful.
E)   none of the aboveF) A) and B)
G) A) and C)

Question 5

Explain the four types of forecasting methods.

Accepted Answer

Forecasting methods are classified accor...

Question 6

The objective of forecasting is to filter out the random component (noise)and estimate the systematic component.

Accepted Answer

A) True 
 B)False

Question 7

Aggregate forecasts are usually more accurate than disaggregate forecasts because

Accepted Answer

A)   aggregate forecasts tend to have a larger standard deviation of error relative to the mean.
B)   aggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
C)   disaggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
D)   disaggregate forecasts tend to have less standard deviation of error relative to the mean.
E)   none of the aboveF) A) and C)
G) C) and E)

Question 8

Which of the following is not a forecasting method?

Accepted Answer

A)   Qualitative
B)   Time series
C)   Causal
D)   Simulation
E)   All of the above are forecasting methods.F) B) and D)
G) C) and D)

Question 9

Explain the role of forecasting in a supply chain.

Accepted Answer

The forecast of demand forms the basis f...

Question 10

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable.

Accepted Answer

A) True 
 B)False

Question 11

Long-term forecasts are usually more accurate than short-term forecasts.

Accepted Answer

A) True 
 B)False

Question 12

The measure of forecast error where the amount of error of each forecast is squared and then an average is calculated is

Accepted Answer

A)   mean squared error (MS
E)  .
B)   mean absolute deviation (MA
D)  .
C)   mean absolute percentage error (MAP
E)  .
D)   bias.
E)   the tracking signal.F) A) and B)
G) A) and C)

Question 13

Leaders in many supply chains have started moving toward collaborative forecasting to improve their ability to match supply and demand.

Accepted Answer

A) True 
 B)False  True

Question 14

Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g.,the state of the economy,interest rates,etc.) to make a forecast are known as

Accepted Answer

A)   qualitative forecasting methods.
B)   time series forecasting methods.
C)   causal forecasting methods.
D)   simulation forecasting methods.
E)   none of the aboveF) C) and D)
G) A) and D)

Question 15

Marketing can utilize forecasts to make decisions concerning

Accepted Answer

A)   scheduling.
B)   promotions.
C)   inventory control.
D)   aggregate planning.
E)   purchasing.F) A) and E)
G) B) and E)

Question 16

Explain the basic,six-step approach to help an organization perform effective forecasting.

Accepted Answer

The following basic,six-step approach helps an organization perform effective forecasting:
1.Understand the objective of forecasting.The objective of every forecast is to support decisions that are based on the forecast,so an important first step is to clearly identify these decisions.Examples of such decisions include how much of a particular product to make,how much to inventory,and how much to order.All parties affected by a supply chain decision should be aware of the link between the decision and the forecast.Failure to make these decisions jointly may result in either too much or too little product in various stages of the supply chain.
2.Integrate demand planning and forecasting throughout the supply chain.A company should link its forecast to all planning activities throughout the supply chain.These include capacity planning,production planning,promotion planning,and purchasing,among others.This link should exist at both the information system and the human resource management level.As a variety of functions are affected by the outcomes of the planning process,it is important that all of them are integrated into the forecasting process.To accomplish this integration,it is a good idea for a firm to have a cross-functional team,with members from each affected function responsible for forecasting demand-and an even better idea to have members of different companies in the supply chain working together to create a forecast.
3.Understand and identify customer segments.Here a firm must identify the customer segments the supply chain serves.Customers may be grouped by similarities in service requirements,demand volumes,order frequency,demand volatility,seasonality,and so forth.In general,companies may use different forecasting methods for different segments.A clear understanding of the customer segments facilitates an accurate and simplified approach to forecasting.
4.Identify the major factors that influence the demand forecast.A proper analysis of these factors is central to developing an appropriate forecasting technique.The main factors influencing forecasts are demand,supply,and product-related phenomena.On the demand side,a company must ascertain whether demand is growing,declining,or has a seasonal pattern.These estimates must be based on demand-not sales data.On the supply side,a company must consider the available supply sources to decide on the accuracy of the forecast desired.If alternate supply sources with short lead times are available,a highly accurate forecast may not be especially important.However,if only a single supplier with a long lead time is available,an accurate forecast will have great value.On the product side,a firm must know the number of variants of a product being sold and whether these variants substitute for or complement each other.If demand for a product influences or is influenced by demand for another product,the two forecasts are best made jointly.
5.Determine the appropriate forecasting technique.In selecting an appropriate forecasting technique,a company should first understand the dimensions that will be relevant to the forecast.These dimensions include geographical area,product groups,and customer groups.The company should understand the differences in demand along each dimension.A firm would be wise to have different forecasts and techniques for each dimension.At this stage,a firm selects an appropriate forecasting method from the four methods discussed earlier-qualitative,time series,causal,or simulation.Using a combination of these methods is often effective.
6.Establish performance and error measures for the forecast.Companies should establish clear performance measures to evaluate the accuracy and timeliness of the forecast.These measures should correlate with the objectives of the business decisions based on these forecasts.
Each organization must use all six steps to forecast effectively.

Question 17

The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand,because these forecasts are often very different.

Accepted Answer

A) True 
 B)False

Question 18

When either the supply of raw materials or the demand for the finished product is highly variable,forecasting and the accompanying managerial decisions

Accepted Answer

A)   are extremely simple.
B)   are relatively straightforward.
C)   are extremely difficult.
D)   should not be attempted.
E)   none of the aboveF) D) and E)
G) A) and E)

Question 19

Forecasting methods that imitate the consumer choices that give rise to demand to arrive at a forecast are known as

Accepted Answer

A)   qualitative forecasting methods.
B)   time series forecasting methods.
C)   causal forecasting methods.
D)   simulation forecasting methods.
E)   none of the aboveF) A) and B)
G) A) and C)

Question 20

The measure of forecast error where the absolute amount of error of each forecast is averaged is

Accepted Answer

A)   mean squared error (MS
E)  .
B)   mean absolute deviation (MA
D)  .
C)   mean absolute percentage error (MAP
E)  .
D)   bias.
E)   the tracking signal.F) D) and E)
G) B) and C) B

Exam 7: Demand Forecasting in a Supply Chain

The result of each stage in the supply chain making its own separate forecast is

Correct Answer
verified

Time series forecasting methods are most appropriate when

Correct Answer
verified

The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next.

Correct Answer
verified

In general,the further up the supply chain a company is (or the further they are from the consumer) ,

Correct Answer
verified

Explain the four types of forecasting methods.

Correct Answer
verified
Forecasting methods are classified accor...
View Answer

The objective of forecasting is to filter out the random component (noise)and estimate the systematic component.

Correct Answer
verified

Aggregate forecasts are usually more accurate than disaggregate forecasts because

Correct Answer
verified

Which of the following is not a forecasting method?

Correct Answer
verified

Explain the role of forecasting in a supply chain.

Correct Answer
verified
The forecast of demand forms the basis f...
View Answer

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable.

Correct Answer
verified

Long-term forecasts are usually more accurate than short-term forecasts.

Correct Answer
verified

The measure of forecast error where the amount of error of each forecast is squared and then an average is calculated is

Correct Answer
verified

Leaders in many supply chains have started moving toward collaborative forecasting to improve their ability to match supply and demand.

Correct Answer
verified
True

Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g.,the state of the economy,interest rates,etc.) to make a forecast are known as

Correct Answer
verified

Marketing can utilize forecasts to make decisions concerning

Correct Answer
verified

Explain the basic,six-step approach to help an organization perform effective forecasting.

The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand,because these forecasts are often very different.

Correct Answer
verified

When either the supply of raw materials or the demand for the finished product is highly variable,forecasting and the accompanying managerial decisions

Correct Answer
verified

Forecasting methods that imitate the consumer choices that give rise to demand to arrive at a forecast are known as

Correct Answer
verified

The measure of forecast error where the absolute amount of error of each forecast is averaged is

Correct Answer
verified
B

Exam 7: Demand Forecasting in a Supply Chain

The result of each stage in the supply chain making its own separate forecast is

Correct AnswerverifiedShow Answer

Time series forecasting methods are most appropriate when

Correct AnswerverifiedShow Answer

The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next.

Correct AnswerverifiedShow Answer

In general,the further up the supply chain a company is (or the further they are from the consumer) ,

Correct AnswerverifiedShow Answer

Explain the four types of forecasting methods.

Correct AnswerverifiedForecasting methods are classified accor...View AnswerShow Answer

The objective of forecasting is to filter out the random component (noise)and estimate the systematic component.

Correct AnswerverifiedShow Answer

Aggregate forecasts are usually more accurate than disaggregate forecasts because

Correct AnswerverifiedShow Answer

Which of the following is not a forecasting method?

Correct AnswerverifiedShow Answer

Explain the role of forecasting in a supply chain.

Correct AnswerverifiedThe forecast of demand forms the basis f...View AnswerShow Answer

Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable.

Correct AnswerverifiedShow Answer

Long-term forecasts are usually more accurate than short-term forecasts.

Correct AnswerverifiedShow Answer

The measure of forecast error where the amount of error of each forecast is squared and then an average is calculated is

Correct AnswerverifiedShow Answer

Leaders in many supply chains have started moving toward collaborative forecasting to improve their ability to match supply and demand.

Correct AnswerverifiedTrue

Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g.,the state of the economy,interest rates,etc.) to make a forecast are known as

Correct AnswerverifiedShow Answer

Marketing can utilize forecasts to make decisions concerning

Correct AnswerverifiedShow Answer

Explain the basic,six-step approach to help an organization perform effective forecasting.

The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand,because these forecasts are often very different.

Correct AnswerverifiedShow Answer

When either the supply of raw materials or the demand for the finished product is highly variable,forecasting and the accompanying managerial decisions

Correct AnswerverifiedShow Answer

Forecasting methods that imitate the consumer choices that give rise to demand to arrive at a forecast are known as

Correct AnswerverifiedShow Answer

The measure of forecast error where the absolute amount of error of each forecast is averaged is

Correct AnswerverifiedB

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Forecasting methods are classified accor...
View Answer

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The forecast of demand forms the basis f...
View Answer

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True

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B