Demand Management, Forecasting, and Aggregate Planning MCQs
Demand Management, Forecasting, and Aggregate Planning MCQs
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1: Aggregate Planning Planning that occurs when firms consider their _______ business plans
A. Long-term
B. Short -term
C. Plain
D. Both a & c
2: Which techniques assume that one or more factors (independent variables) are related to demand.
A. Associative Forecasts
B. Business Cycle
C. Causal Variable
D. Consumer Surveys
3: Business cycles in the United States have been affected by various global events.
A. True
B. False
4: A predictor of the dependent variable demand is known as _____
A. Collaborative Planning
B. Forecasting
C. Replenishment
D. Causal Variable
5: Collaborative Planning, Forecasting, and Replenishment allows for continuous _____ of inventory and upcoming requirements, resulting in less safety stock .
A. Removing
B. Deleting
C. Updating
D. None of these
6: Consumer Surveys focus groups to gather consumer opinions of existing products and new product ideas to generate a forecast
A. True
B. False
7: Contingency Plans Insurance-type activities that are performed to _____ and its customers for times when actual demand varies significantly from the forecast
A. Protect the firm
B. Safe the firm
C. Both a & b
D. None of these
8: Contingent Workers part-time and _______ .
A. Temporary workers
B. Permanent worker
C. Both a & b
D. None of these
9: Cyclical Variation occurs every several years and is influenced by macroeconomic and political factors.
A. True
B. False
10: The process that balances customer requirements with supply chain capabilities is known as ______ .
A. Delphi Method
B. Demand Management
C. Exponential Smoothing Forecast
D. None of these
11: Which forecast approach requires fewer calculations than the weighted moving average forecast because only two data points are needed ?
A. Exponential Smoothing Forecast
B. Jury of Executive Opinion
C. Linear Trend Forecast
D. Mean Absolute Deviation
12: 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 _______ .
A. Exponential Forecast
B. Forecast Bias
C. Forecast Error
D. None of these
13: Forecast error simply is the difference between the ______ and the forecast for that period.
A. Actual demand
B. Real demand
C. Both a & b
D. None of these
14: Which technique uses a group of senior executives who are knowledgeable about the firm’s products ?
A. Exponential Smoothing Forecast
B. Jury of Executive Opinion
C. Linear Trend Forecast
D. Mean Absolute Deviation
15: A linear regression forecast, where one variable is time and the other variable is the actual data is known as ______ .
A. Exponential Smoothing Forecast
B. Jury of Executive Opinion
C. Linear Trend Forecast
D. Mean Absolute Deviation
16: Which method is used for comparing forecasting techniques; it averages the absolute value of the errors over a given period of time ?
A. Mean Absolute Deviation
B. Mean Absolute Percentage Error
C. Production Planning Strategies
D. Both a & b
17: Which method provides an estimate of the magnitude of forecast error. The monthly absolute forecast error divided by actual demand is summed,
A. Exponential Smoothing Forecast
B. Mean Absolute Percentage Error
C. Linear Trend Forecast
D. Mean Absolute Deviation
18: This method provides an estimate of the magnitude of forecast error is known as _____ .
A. Exponential Smoothing Forecast
B. Mean Absolute Percentage Error
C. Linear Trend Forecast
D. Mean Absolute Deviation
19: Multiple Regression Forecasting used when there are several independent variables used together, to predict the dependent variable .
A. True
B. False
20: Product family consists of different products that share similar _______ .
A. Characteristics
B. Components
C. Manufacturing processes
D. All of these
21: Production planning strategies is a sets of activities in operations management for meeting the aggregate plan .
A. Production Planning Strategies
B. Qualitative Forecasting Techniques
C. Random Variations
D. None of these
22: 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 .
A. True
B. False
23: Random variations are what cause even the best forecasts to contain errors.
A. True
B. False
24: Running Sum of Forecast Error provides a measure of forecast bias .
A. True
B. False
25: Sales Force Estimates provide estimates of future customer demand.
A. True
B. False
26: Measure of the variation in the dependent variable that can be explained by the independent variable is known as ______ .
A. Production Planning Strategies
B. Qualitative Forecasting Techniques
C. Random Variations
D. Sample Coefficient of Determination
27: Sample Correlation Coefficients range from _____ .
A. ∞ to -∞
B. −1 to +1
C. 1 to 5
D. None of these
28: Seasonal Variations is a demand patterns that repeat over a consistent interval such as ______ , or seasons
A. Days
B. Weeks
C. Months
D. All of these
29: Linear regression is used to identify the causal relationship and the forecast equation .
A. True
B. False
30: Which technique used recent historical demand to generate a forecast and is fairly reliable when the demand is stable over time ?
A. Simple Moving Average Forecast
B. Smoothing Constant
C. Both a & b
D. None of these
31: Smoothing Constant used in the exponential smoothing forecast. The weight must be between _______ .
A. 0 and 1
B. 1 and 2
C. 2 and 6
D. None of these
32: 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 .
A. True
B. False
33: Tracking Signal used as a running check on the ______ of a forecasting technique.
A. Accuracy
B. Maintainability
C. Both a & b
D. None of these
34: Trend Variations is a demand variation caused by gradually ______ movements over time.
A. Increasing
B. Decreasing
C. Both a & b
D. None of these
35: Weighted Moving Average Forecast allows the user to weigh the more recent periods more heavily to take into consideration recent changes in the data .
A. True
B. False
36: The _______ department oversees the procurement of materials, parts, and components for the organization.
A. Field sales
B. Marketing
C. Supply management
D. Distribution
37: The _______ department’s responsibility is to fill orders, monitor finished-goods inventories, and ensure on-time deliveries.
A. Field sales
B. Marketing
C. Supply management
D. Distribution
38: The _______ department’s responsibilities are new product introductions, promotion, and pricing.
A. Field sales
B. Marketing
C. Supply management
D. Distribution
39: The _______ department provides projections for the next year as an input to the forecasting process.
A. Field sales
B. Marketing
C. Supply management
D. Distribution
40: _______ is based on the assumption that historic demand can be used to predict future deman
A. Qualitative forecasting
B. Quantitative forecasting
C. The Delphi method
D. A time series forecast
41: _______ uses several rounds of questionnaires to establish a forecast consensus.
A. Qualitative forecasting
B. Quantitative forecasting
C. The Delphi method
D. A time series forecast
42: _______ is forecasting that is based on guesswork, intuition, or opinions.
A. Qualitative forecasting
B. Quantitative forecasting
C. The Delphi method
D. Time series forecasting
43: _______ is forecasting that uses mathematical models and historical dat
A. Qualitative forecasting
B. Quantitative forecasting
C. The Delphi method
D. Time series forecasting
44: Which of the following is an associative forecasting technique?
A. Weighted moving average forecast
B. Exponential smoothing forecast
C. Linear trend forecast
D. Jury of executive opinion
45: Which of the following is a times series forecasting technique?
A. Multiple regression forecast
B. Exponential smoothing forecast
C. Linear trend forecast
D. Jury of executive opinion
46: In simple linear regression forecasts, the _______ is a predictor of deman
A. Smoothing constant
B. Causal variable
C. Sample correlation coefficient
D. Sample coefficient of determination
47: The _______ is a measure of the variation in the dependent variable that can be explained by the independent variable.
A. Smoothing constant
B. Causal variable
C. Sample correlation coefficient (R)
D. Sample coefficient of determination (R2)
48: _______ provides a measure of forecast bias.
A. Mean absolute percentage error
B. Forecast bias
C. Running sum of forecast error
D. Tracking signal
49: Exception management is in which stage of the collaborative planning, forecasting, and replenishment process?
A. Strategy and planning stage
B. Demand and supply management stage
C. Execution stage
D. Analysis stage
50: “Production is varied to meet demand” defines which type of production planning strategy?
A. Mixed strategy
B. Level strategy
C. Operations strategy
D. Chase strategy
Demand Management, Forecasting, and Aggregate Planning MCQs
