OPMA 3306 EXAM 1: CH 2,3,4,11
EXAM QUESTIONS AND ANSWERS
Market research is a quantitative method of forecasting - Correct Answers -False
(qualitative)
In the exponential smoothing method, only three pieces of data are needed to forecast
the future - Correct Answers --most recent forecast,
-actual demand that occurred for that forecast period
-a smoothing constant alpha.
The step-by-step procedure for the Delphi method is: - Correct Answers -1. Choose the
experts to participate. There should be a variety of knowledgeable people in different
areas.
Which of the following forecasting methods is very dependent on selection of the right
individuals who will judgmentally be used to actually generate the forecast? - Correct
Answers -Delphi method
Which of the following are used to describe the degree of error?
Weighted moving average
Regression
Moving average
Forecast as a percent of actual
Mean absolute deviation - Correct Answers -mean absolute deviation
additive seasonal variation - Correct Answers -assumes that the seasonal amount is a
constant no matter what the trend or average amount is
Samples of qualitative forecasting techniques. - Correct Answers -Market research,
panel consensus, Historical analogy, Delphi method.
The smoothing constant values depend on which of the following? - Correct Answers --
How much random variation there is in demand
-how steady the trend factor is
In decomposition of time series data it is relatively easy identify cycles and
autocorrelation components. - Correct Answers -False (more difficult (than trend
detection) to identify the cycles, autocorrelation)
Fixed-time period inventory models are "time triggered" - Correct Answers -true
, What is the basic purpose of inventory analysis? - Correct Answers -To specify when
items should be ordered and how large the order should be.
Savings from reduced inventory results in increased profit. - Correct Answers -true
When developing inventory cost models, which of the following are not included as
costs to place an order?
Phone calls
Taxes
Clerical
Calculating quantity to order
Postage - Correct Answers -taxes
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products? - Correct Answers -A items get 15%, B
items get 35%, and C items get 50%
S - Correct Answers -Setup cost or cost of placing an order
The Zone of Non-Service - Correct Answers -arrivals exceed services ( many customers
are never served )
The capacity focus concept can be put into practice through a mechanism called which
of the following? - Correct Answers -plant within a plant
Which of the following is not a step used in determining production capacity
requirements? - Correct Answers -forecasting raw material usage
Compared with a service operation, a manufacturing operation's capacity is which of the
following? - Correct Answers -demand can be smoothed by inventory policies
Service vs manufacturing capacity - Correct Answers -service capacity more time- and
location-dependent, (than manufacturing capacity) it is subject to more volatile demand
fluctuations, and utilization directly impacts service quality. Also, unlike goods, services
cannot be stored for later use.
When deciding to add capacity to a factory which of the following need not be
considered? - Correct Answers -immediate product demand
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
cushion? - Correct Answers -25 percent
capacity cushion - Correct Answers -an amount of capacity in excess of expected
demand
EXAM QUESTIONS AND ANSWERS
Market research is a quantitative method of forecasting - Correct Answers -False
(qualitative)
In the exponential smoothing method, only three pieces of data are needed to forecast
the future - Correct Answers --most recent forecast,
-actual demand that occurred for that forecast period
-a smoothing constant alpha.
The step-by-step procedure for the Delphi method is: - Correct Answers -1. Choose the
experts to participate. There should be a variety of knowledgeable people in different
areas.
Which of the following forecasting methods is very dependent on selection of the right
individuals who will judgmentally be used to actually generate the forecast? - Correct
Answers -Delphi method
Which of the following are used to describe the degree of error?
Weighted moving average
Regression
Moving average
Forecast as a percent of actual
Mean absolute deviation - Correct Answers -mean absolute deviation
additive seasonal variation - Correct Answers -assumes that the seasonal amount is a
constant no matter what the trend or average amount is
Samples of qualitative forecasting techniques. - Correct Answers -Market research,
panel consensus, Historical analogy, Delphi method.
The smoothing constant values depend on which of the following? - Correct Answers --
How much random variation there is in demand
-how steady the trend factor is
In decomposition of time series data it is relatively easy identify cycles and
autocorrelation components. - Correct Answers -False (more difficult (than trend
detection) to identify the cycles, autocorrelation)
Fixed-time period inventory models are "time triggered" - Correct Answers -true
, What is the basic purpose of inventory analysis? - Correct Answers -To specify when
items should be ordered and how large the order should be.
Savings from reduced inventory results in increased profit. - Correct Answers -true
When developing inventory cost models, which of the following are not included as
costs to place an order?
Phone calls
Taxes
Clerical
Calculating quantity to order
Postage - Correct Answers -taxes
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products? - Correct Answers -A items get 15%, B
items get 35%, and C items get 50%
S - Correct Answers -Setup cost or cost of placing an order
The Zone of Non-Service - Correct Answers -arrivals exceed services ( many customers
are never served )
The capacity focus concept can be put into practice through a mechanism called which
of the following? - Correct Answers -plant within a plant
Which of the following is not a step used in determining production capacity
requirements? - Correct Answers -forecasting raw material usage
Compared with a service operation, a manufacturing operation's capacity is which of the
following? - Correct Answers -demand can be smoothed by inventory policies
Service vs manufacturing capacity - Correct Answers -service capacity more time- and
location-dependent, (than manufacturing capacity) it is subject to more volatile demand
fluctuations, and utilization directly impacts service quality. Also, unlike goods, services
cannot be stored for later use.
When deciding to add capacity to a factory which of the following need not be
considered? - Correct Answers -immediate product demand
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
cushion? - Correct Answers -25 percent
capacity cushion - Correct Answers -an amount of capacity in excess of expected
demand
