BUSOBA 3130 EXAM 3 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Strategic forecasts
Answer:
Medium and long-term forecasts that are used for decisions related to strategy
and aggregate demand.
Question:
2. tactical forecasts
Answer:
Short-term forecasts used for making day-to-day decisions related to meeting
demand.
Question:
3. Tracking signal
Answer:
A measure of whether the forecast is keeping pace with any genuine upward or
downward changes in demand. This is used to detect forecast bias.
Question:
4. Time series analysis
Answer:
A forecast in which past demand data is used to predict future demand.
Question:
5. Delphi Method
Answer:
Conceals the identity of the individuals participating in the study, so everyone has
the same weight
1. Choose the experts to participate
2. Through a questionnaire, obtain forecasts from all participants
3. Summarize the results, and redistribute them to the participants along with the
appropriate new questions
4. Summarize again, refining forecasts and conditions, and again develop new
questions.
5. Repeat step 4 if necessary. Distribute the final results to all participants
, Question:
6. Moving average
Answer:
A forecast based on average past demand.
Question:
7. Weighted moving average
Answer:
A forecast made with past data where more recent data are given more
significance than older data.
Question:
8. exponential smoothing
Answer:
A time series forecasting technique using weights that decrease exponentially (1 −
α) for each past period.
Question:
9. Smoothing with constant alpha
Answer:
The parameter in the exponential smoothing equation that controls the speed of
reaction to differences between forecasts and actual demand.
Question:
10. Forecast error
Answer:
The difference between actual demand and what was forecast.
Question:
11. Mean Absolute Deviation (MAD)
Answer:
The average of the absolute value of the actual forecast error.
Question:
12. Lean production
Answer:
Integrated activities designed to achieve high-volume, high-quality production
using minimal inventories of raw materials, work-in-process, and finished goods.
AND CORRECT ANSWERS
Question:
1. Strategic forecasts
Answer:
Medium and long-term forecasts that are used for decisions related to strategy
and aggregate demand.
Question:
2. tactical forecasts
Answer:
Short-term forecasts used for making day-to-day decisions related to meeting
demand.
Question:
3. Tracking signal
Answer:
A measure of whether the forecast is keeping pace with any genuine upward or
downward changes in demand. This is used to detect forecast bias.
Question:
4. Time series analysis
Answer:
A forecast in which past demand data is used to predict future demand.
Question:
5. Delphi Method
Answer:
Conceals the identity of the individuals participating in the study, so everyone has
the same weight
1. Choose the experts to participate
2. Through a questionnaire, obtain forecasts from all participants
3. Summarize the results, and redistribute them to the participants along with the
appropriate new questions
4. Summarize again, refining forecasts and conditions, and again develop new
questions.
5. Repeat step 4 if necessary. Distribute the final results to all participants
, Question:
6. Moving average
Answer:
A forecast based on average past demand.
Question:
7. Weighted moving average
Answer:
A forecast made with past data where more recent data are given more
significance than older data.
Question:
8. exponential smoothing
Answer:
A time series forecasting technique using weights that decrease exponentially (1 −
α) for each past period.
Question:
9. Smoothing with constant alpha
Answer:
The parameter in the exponential smoothing equation that controls the speed of
reaction to differences between forecasts and actual demand.
Question:
10. Forecast error
Answer:
The difference between actual demand and what was forecast.
Question:
11. Mean Absolute Deviation (MAD)
Answer:
The average of the absolute value of the actual forecast error.
Question:
12. Lean production
Answer:
Integrated activities designed to achieve high-volume, high-quality production
using minimal inventories of raw materials, work-in-process, and finished goods.
