SCMT 2103 - EXAM 2 (THOMAS)
QUESTIONS AND ANSWERS
As the prediction error increases, safety stock costs ______________. - Correct
Answers -increase
When the forecast is too low, the forecast error is _______. - Correct Answers -positive
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
The RSFE and MFE are used to measure ______ in forecast error. - Correct Answers -
bias
If the forecasts on average are too high, RSFE and MFE will be _______. - Correct
Answers -negative
MAPE is used to measure forecast error __________ - Correct Answers -Magnitude
Assume the two SKUs have the same MAPE. However, SKU A has a lower standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -less
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 10% 650 67,638
B 8% 640 57,160
C 24% 785 81,797
D 12% 630 68,923 - Correct Answers -Product D
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 12% 585
B 20% 610
, C 10% 722
D 17% 500 - Correct Answers -Product C
In order to manage forecast accuracy, companies must:
I. Measure forecast error
II. Monitor forecast error
III. Make forecast adjustments based forecast error - Correct Answers -I, II & III
If forecast error is negative, then the forecast was too _____. - Correct Answers -high
Forecast ______ describes whether we are on average forecasting too high or low while
forecast _______ measures the size of the forecast error, irrespective of the
___________ of the error. - Correct Answers -bias, magnitude, direction
Which forecast error metric is commonly used because it can be easily used for
comparability of forecast errors across different product lines? - Correct Answers -Mean
absolute percent error (MAPE)
The fundamental purpose of an S&OP process is to __________________________. -
Correct Answers -match supply and demand
This question is part of what S&OP process: "If there were no constraints from the
supply side, what could we actually sell?" - Correct Answers -Demand review
A purpose of the consensus meeting is to _______________________ - Correct
Answers -Quantify the gap between supply and demand
Sales and operations planning should consider: - Correct Answers -All of these must be
considered when performing S&OP
Firms that practice S&OP with discipline are likely to experience higher levels of
_____________ relative to firms with weak undisciplined implementation - Correct
Answers -all of the above
An organization has developed three alternate sales and operations plans for the
coming six months and now must choose between them. They should consider: -
Correct Answers -All of these are good criteria for a sales and operation plan
___________ is a concept that encourages and facilitates collaborative processes
between members of a supply chain. - Correct Answers -CPFR
A CPFR program allows a producer to determine replenishment quantities in concert
with a retailer and thereby remove redundant inventory and improve customer service.
This activity likely ______________. - Correct Answers -mitigates the bullwhip effect
QUESTIONS AND ANSWERS
As the prediction error increases, safety stock costs ______________. - Correct
Answers -increase
When the forecast is too low, the forecast error is _______. - Correct Answers -positive
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
The RSFE and MFE are used to measure ______ in forecast error. - Correct Answers -
bias
If the forecasts on average are too high, RSFE and MFE will be _______. - Correct
Answers -negative
MAPE is used to measure forecast error __________ - Correct Answers -Magnitude
Assume the two SKUs have the same MAPE. However, SKU A has a lower standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -less
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 10% 650 67,638
B 8% 640 57,160
C 24% 785 81,797
D 12% 630 68,923 - Correct Answers -Product D
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 12% 585
B 20% 610
, C 10% 722
D 17% 500 - Correct Answers -Product C
In order to manage forecast accuracy, companies must:
I. Measure forecast error
II. Monitor forecast error
III. Make forecast adjustments based forecast error - Correct Answers -I, II & III
If forecast error is negative, then the forecast was too _____. - Correct Answers -high
Forecast ______ describes whether we are on average forecasting too high or low while
forecast _______ measures the size of the forecast error, irrespective of the
___________ of the error. - Correct Answers -bias, magnitude, direction
Which forecast error metric is commonly used because it can be easily used for
comparability of forecast errors across different product lines? - Correct Answers -Mean
absolute percent error (MAPE)
The fundamental purpose of an S&OP process is to __________________________. -
Correct Answers -match supply and demand
This question is part of what S&OP process: "If there were no constraints from the
supply side, what could we actually sell?" - Correct Answers -Demand review
A purpose of the consensus meeting is to _______________________ - Correct
Answers -Quantify the gap between supply and demand
Sales and operations planning should consider: - Correct Answers -All of these must be
considered when performing S&OP
Firms that practice S&OP with discipline are likely to experience higher levels of
_____________ relative to firms with weak undisciplined implementation - Correct
Answers -all of the above
An organization has developed three alternate sales and operations plans for the
coming six months and now must choose between them. They should consider: -
Correct Answers -All of these are good criteria for a sales and operation plan
___________ is a concept that encourages and facilitates collaborative processes
between members of a supply chain. - Correct Answers -CPFR
A CPFR program allows a producer to determine replenishment quantities in concert
with a retailer and thereby remove redundant inventory and improve customer service.
This activity likely ______________. - Correct Answers -mitigates the bullwhip effect
