MGSC 395 FINAL EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026

MGSC 395 FINAL EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026 A demand management option for a company is to even out the load on resources by producing ___________ products, or services that have similar resource requirements but different demand cycles. A. prescheduled products B. complementary products C. backlog products D. promotional products - Answers B Generally, which of the following are to be avoided when managing demand? A. quantity discounts B. backorders C. perishable capacity D. promotional pricing - Answers A A repeatable pattern of increases or decreases in demand, depending on periods of time of within one year or less, is a time-series pattern called A. trend. B. seasonal. C. random. D. cyclical. - Answers B The least predictable pattern of time-series variation is called A. trend. B. random. C. horizontal. D. seasonal. - Answers B Companies that use a two-tier forecasting system first cluster (or "roll up") several similar services or products in a process called A. demand grouping. B. aggregation. C. combination. D. product clustering. - Answers B Which of the following statements regarding forecasting "units of measurement" is best? A. "Dollars" is always the best initial forecasting unit of measurement. B. Forecasting "product units" should always be avoided. C. Forecasted "product units" can be translated to dollars by multiplying them by the unit price. D. If accurately forecasting demand for a product is not possible in terms of "number of units," forecasting should be avoided. - Answers C _________ methods translate the opinions of managers, expert opinions, consumer surveys, and salesforce estimates into quantitative estimates. A. Judgment B. Arbitration C. Estimation D. Opinion - Answers A Which of the following is NOT considered a quantitative forecasting method? A. Delphi analysis B. time-series analysis C. causal methods D. trend projection with regression - Answers A A forecast with a large cumulative sum of forecast errors (CFE) indicates A. that the forecast has no bias. B. consistent forecasting mistakeslong dash—the forecast is always too high or too low. C. that the forecast will cause very little disruption to planning efforts. D. All of the above. - Answers B ________ is the best error measure to use when making comparisons between time series for different SKUs. A. Mean squared error B. Standard deviation of the errors C. Mean absolute deviation D. Mean absolute percent error - Answers D Which error measure lets a forecaster know that the forecast is consistently high? A. MAPE B. CFE C. MSE D. MAD - Answers B Which statement about the forecasting process is best? A. Whenever possible, forecast at the lowest level (greatest level of detail). B. Bias is the worst kind of forecast error. C. The best way to improve forecast accuracy is to add additional terms to the forecast equation. D. Quantitative forecasts are better than qualitative forecasts. - Answers A Judgment methods may be the only practical way to make a forecast when A. quantitative models have been performing particularly well in recent periods. B. there is a great deal of historical product data. C. there is no historical data due to a new product introduction. D. the forecast made in the previous period had a MAPE of less than 10%. - Answers C The _________ of forecasting is a process of gaining consensus from a group of experts. A. Delphi method B. technological method C. consulting method D. salesforce estimate method - Answers A ____________ can also be used for forecasting the quick pace of technological change. A. Executive opinion B. Exponential smoothing C. "What-if" analysis D. Market research - Answers A Judgment methods are LEAST likely to be indicated in which of the following situations? A. A new product is being introduced. B. Short-term forecasts are made for a product with stable demand. C. The Delphi method is necessary. D. The underlying product technology is in transition. - Answers B Combination forecasts produced by averaging independent forecasts based on different methods A. has been suggested by research to produce more accurate forecasts than a single forecasting procedure. B. seldom performs better over time than the best single forecasting procedure. C. should not be attempted when the individual forecasts bring different kinds of information into the forecasting process. D. is prohibitively expensive. - Answers A Which of the following statements is false? A. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products. B. If the lead time to buy raw materials is long, the forecasts go farther out into the future. C. In a make-to-order environment, the forecasts tend to be for groups of products. D. All of the above statements are true. - Answers D In step three of the forecasting process we try to achieve consensus of the forecast. One way to achieve that consensus in a formal way is to employ A. consensus planning and forecasting (CPF). B. combination forecasting (CF). C. collaborative planning, forecasting, and replenishment (CPFR). D. focus forecasting (FF). - Answers C Which of the following is NOT a principle of the forecasting process? A. Bias is the worst kind of forecast error. B. Whenever possible, forecast in detail at more disaggregated levels. C. The best way to improve forecast accuracy is to focus on reducing forecast error. D. Better processes yield better forecasts. - Answers B Which of the following costs is NOT considered an inventory holding (or carrying) cost? A. inventory transportation costs B. inventory shrinkage costs C. inventory handling costs D. inventory storage costs - Answers A Which of the following can put pressure on a company to carry small levels of inventory? A. high ordering cost B. the potential for stockouts and backorders C.