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15 Cards in this Set
- Front
- Back
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How does product design affect forecasting accuracy? |
Postponable product designs remove the need to forecast demand for final product configurations |
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Strategic demand planning would best be utilized: |
To decide whether or not to close a manufacturing plant. (Strategic demand planning is necessary for long-term decisions such as building or closing a plant.) |
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The primary difference between demand management and demand forecasting is: |
Demand management is proactive, while forecasting attempts to predict. |
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Which of the following factors should be considered when one designs a forecasting process? |
Time horizon for planning. Level of detail for planning. Availability of data. *All of these. |
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A forecasting technique that seeks inputs from people who are in close contact with customers is known as: |
Grassroots forecasting |
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For purposes of comparability across products, forecasters sometimes adjust the MAD to create a related metric, the _______. |
MAPE |
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In _____ the smoothing coefficients in exponential smoothing models are automatically adjusted as a function of the tracking signal. |
Adaptive forecasting |
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In recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develop demand plans and execute those plans. The procedure they are following is known as: |
Collaborative planning, forecasting, and replenishment. |
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The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a three- to five-year period. This is an example of which type of demand pattern? |
Seasonality and cycles |
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Long-term/strategic demand planning is typically done using what units? |
Total business unit sales |
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Designing postponable products has the potential to allow operations managers to: |
Move from build-to-stock to assemble or make-to-order operations |
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Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate? |
Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year |
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Suppose your firm is about to launch a radically new product. The type of demand forecasting system you would most likely use is: |
Executive judgment. |
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_____ describes the relationship of current demand with past demand. |
Autocorrelation |
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A tracking signal is the ratio of the MAD to a running total of forecast error that indicates when the pattern of forecast error is changing significantly. T or F? |
False |
