OMGT Exam 2 Study Guide | Operations Management Review, Key Concepts & Practice
Questions
T/F The first step of an effective forecasting model is to select the items needed to be
forecasted: - ANS ✔✔False
Which of the following is an example of how demand forecasting affects supply chain planning?
a) Provides an insight into the need for logistics and transportation
b) Helps a business allocate its resources
c) Helps a business make effective procurement and production plans
d) All the listed items are examples of how forecasting affects supply chain planning - ANS ✔✔d)
All the listed items are examples of how forecasting affects supply chain planning
Selecting an appropriate forecasting method depends on several factors, including __________.
a) Consensus among industry leaders
b) Time horizon of forecast
c) Ease of implementation
d) Cost of data collection and recording - ANS ✔✔b) Time horizon of forecast
Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art
sewing machine and produce limited quantities of her own clothing designs. After a few months
of operation, she decides to apply some of the forecasting techniques she mastered in school.
Which of these statements about her forecasts is correct?
a) Her forecasts will probably be 100% accurate.
b) Her demand forecasts for a year from now will probably be more accurate than her demand
forecasts for three months from now.
c) Her demand forecasts for each style of skirt will be more accurate than her demand forecasts
for all skirts.
, d) The best way for her to determine the amount of fabric she needs is to forecast it based on
her customer orders for each type of skirt. - ANS ✔✔d) The best way for her to determine the
amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.
While the Delphi method primarily relies on ________, the market research method depends
on ______ to form accurate forecasting models.
a) quantitative data, qualitative attributes
b) qualitative data, quantitative research findings
c) opinions of a group of experts, information from target audiences
d) surveying a sample of the target audience, insights about industry-leading competitors - ANS
✔✔c) opinions of a group of experts, information from target audiences
A steady movement up or down in a time series is called ________.
a) seasonality
b) trend
c) randomness
d) cycle - ANS ✔✔b) trend
In terms of demand pattern, ________ is unpredictable changes from one time period to the
next so do not follow a pattern.
a) random variation
b) seasonality
c) trend
d) cycle - ANS ✔✔a) random variation
Which of these quantitative techniques is a causal model?
a) linear regression
b) simple moving average
Questions
T/F The first step of an effective forecasting model is to select the items needed to be
forecasted: - ANS ✔✔False
Which of the following is an example of how demand forecasting affects supply chain planning?
a) Provides an insight into the need for logistics and transportation
b) Helps a business allocate its resources
c) Helps a business make effective procurement and production plans
d) All the listed items are examples of how forecasting affects supply chain planning - ANS ✔✔d)
All the listed items are examples of how forecasting affects supply chain planning
Selecting an appropriate forecasting method depends on several factors, including __________.
a) Consensus among industry leaders
b) Time horizon of forecast
c) Ease of implementation
d) Cost of data collection and recording - ANS ✔✔b) Time horizon of forecast
Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art
sewing machine and produce limited quantities of her own clothing designs. After a few months
of operation, she decides to apply some of the forecasting techniques she mastered in school.
Which of these statements about her forecasts is correct?
a) Her forecasts will probably be 100% accurate.
b) Her demand forecasts for a year from now will probably be more accurate than her demand
forecasts for three months from now.
c) Her demand forecasts for each style of skirt will be more accurate than her demand forecasts
for all skirts.
, d) The best way for her to determine the amount of fabric she needs is to forecast it based on
her customer orders for each type of skirt. - ANS ✔✔d) The best way for her to determine the
amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.
While the Delphi method primarily relies on ________, the market research method depends
on ______ to form accurate forecasting models.
a) quantitative data, qualitative attributes
b) qualitative data, quantitative research findings
c) opinions of a group of experts, information from target audiences
d) surveying a sample of the target audience, insights about industry-leading competitors - ANS
✔✔c) opinions of a group of experts, information from target audiences
A steady movement up or down in a time series is called ________.
a) seasonality
b) trend
c) randomness
d) cycle - ANS ✔✔b) trend
In terms of demand pattern, ________ is unpredictable changes from one time period to the
next so do not follow a pattern.
a) random variation
b) seasonality
c) trend
d) cycle - ANS ✔✔a) random variation
Which of these quantitative techniques is a causal model?
a) linear regression
b) simple moving average
