Study your flashcards anywhere!
Download the official Cram app for free >
 Shuffle
Toggle OnToggle Off
 Alphabetize
Toggle OnToggle Off
 Front First
Toggle OnToggle Off
 Both Sides
Toggle OnToggle Off
 Read
Toggle OnToggle Off
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
A key: Read text to speech.a key
45 Cards in this Set
 Front
 Back
Adaptive smoothing

The smoothing constant is automatically adjusted as a function of forecast error.


Aggregate forecast

An estimate of sales for a grouping produced by a facility.


Aggregate plan

Budgeted levels of goods, inventory, & backlog that support the production strategy.


Alpha factor

The weighting factor that is applied to the most recent demand. Smoothing constant.


Base series

A succession of values of demandovertime data used in forecasting seasonal items.


Consuming the forecast

The process of reducing the forecast by customer orders.


Correlation

The relationship between two sets of data. If one changes, then the second changes too.


Curve fitting

A straight line, polynomial, or a curve that describes historical time series data.


Decomposition

Method of forecasting where time series data are separated: trend, seasonal, & cyclical.


Delphi method

A qualitative forecasting technique derived by the opinions of experts.


Deviation

The absolute difference between a number and the mean set of numbers.


Distribution of forecast errors

Tabulation of the forecast errors according to the frequency of occurrence of each value.


Econometric model

Equations designed to capture the way dependent & independent variables are interrelated.


Exponential smoothing

A weighted moving average where past observations are discounted according to their age.


Extrapolation

Projection. Estimation of the future value of some data series based on past observations.


First order smoothing

A weighted average approach that is applied to forecasting problems where the data do not exhibit significant patterns


Focus forecasting

Simulate numerous forecasting techniques to better select the most effective one.


Forecast horizon

The period of time into the future for which a forecast is prepared


Frequency distribution

Table that indicates the variation that data will fall into any number of subdivisions.


Leastsquares method

Method of curve fitting that selects a line of best fit through a plot of data.


Life cycle analysis

A quantitative forecasting technique to apply past patterns of demand data to a new product.


Mean

The arithmetic average of a group of values


Median

Middle value in a set of measured values, when the items are arranged in order of magnitude


Moving average

The average value of a certain number of the most recent observations


Noise

Unpredictable or random difference between the observed data and the true process.


Outlier

A data point that differs significantly from other data for a similar phenomenon.


Planning horizon

The amount of time that a plan extends into the future. Covers a minimum of cumulative lead time.


Product group forecast

A forecast for a number of similar products


Probability

A number derived for a process to give the probable outcome of experimentation


Forecast interval

The time unit for which forecasts are prepared, such as week, month, or quarter.


Probability distribution

Numbers that indicate a frequency on how the results of an experiment should occur.


Product group forecast

A forecast for a number of similar products


Pyramid forecasting

A technique that enables mgmt to adjust and balance forecasts made at an aggregate level


Random sample

A selection of observations made with the same probability of selection.


Regression analysis

Describes the functional relationship between one response & independent variables.


Safety capacity

Planned amount by which the available capacity exceeds current productive capacity.


Sample

A portion of a universe of data chosen to estimate some characteristic about the whole universe


Sampling distribution

The distribution of values of a statistic calculated from samples of a given size.


Seasonal index

A number used to adjust data to seasonal demand


Secondorder smoothing

A method for trend situations that employs two previously computed averages to extrapolate.


Sigma

a Greek letter commonly used to designate the standard deviation of a population.


Skew

The degree of nonsymmetry shown by a frequency or probability distribution.


Smoothing constant

The weighting factor that is applied to the most recent demand. Alpha factor.


Trend forecasting models

Methods for forecasting sales data when a definite upward or downward pattern exists.


Weighted moving average

Data to be averaged are not uniformly weighted, but are given values according to their importance.
