OPMA 3306 CHAPTER 3 HOMEWORK
REVIEW EXAM QUESTIONS AND
ANSWERS
What is the term for forecasts used for making day-to-day decisions about meeting
demand? - Correct Answers -Tactical forecasts
What category of forecasting techniques uses managerial judgment in lieu of numerical
data? - Correct Answers -Qualitative techniques
Given the following history, use a three-quarter moving average to forecast the demand
for the third quarter of this year. Note that the 1st quarter is Jan, Feb, and Mar; 2nd
quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. (Round
final answer to a whole number.)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
150 170 190 225 235 250 195 185 175 250 275 295 (Last year)
170 190 175 245 270 215 (This year) - Correct Answers -695.
Ft = At-1 + At-2 + .... At-n = (Add the sum of this year's demand of Jan, Feb, and Mar to
the sum of this year's demand of Apr, May, Jun to the sum of last year's demand of Oct,
Nov, Dec then divide those three sums by 3 to get the forecast of demand for the third
quarter of this year).
245 + 270 + 215 = 730
170 + 190 + 175 = 535
250 + 275 + 295 = 820
(730 + 535 + 820)/3 = 695
Here are the data for the past 21 months for actual sales of a particular product:
LAST YEAR THIS YEAR
January 370 295
February 415 350
March 405 355
April 435 440
May 430 450
June 495 385
July 415 365
August 330 290
, September 385 350
October 515
November 600
December 495
Develop a forecast for the fourth quarter using a three-quarter, weighted moving
average. Weight the most recent quarter 0.50, the second most recent 0.25, and the
third 0.25. Solve the problem using quarters, as opposed to forecasting separate
months. (Round your answer to 2 decimal places.) - Correct Answers -Q1 This Year:
(295+350+355)0.25 = 250
Q2 This Year: (440+450+385)0.25 = 318.75
Q3 This Year: (365+290+350)0.50 = 502.5
Q4 This Year: 250 + 318.75 + 502.5 = 1071.25
The following table contains the number of complaints received in a department store
for the first 6 months of operation: (Round final answer to a whole number.)
MONTH COMPLAINTS
January 36
February 51
March 83
April 94
May 112
June 143
If a three-month moving average is used to smooth this series, what would have been
the forecast for May? - Correct Answers -3 month moving average = Average of
previous three months
Forecast for May = (Feb. + Mar. + Apr.) / 3 = (51 + 83 + 94) / 3 = 76
The following tabulations are actual sales of units for six months and a starting forecast
in January.
ACTUAL FORECAST
January 104 84
February 100
March 123
April 92
May 79
June 100
REVIEW EXAM QUESTIONS AND
ANSWERS
What is the term for forecasts used for making day-to-day decisions about meeting
demand? - Correct Answers -Tactical forecasts
What category of forecasting techniques uses managerial judgment in lieu of numerical
data? - Correct Answers -Qualitative techniques
Given the following history, use a three-quarter moving average to forecast the demand
for the third quarter of this year. Note that the 1st quarter is Jan, Feb, and Mar; 2nd
quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. (Round
final answer to a whole number.)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
150 170 190 225 235 250 195 185 175 250 275 295 (Last year)
170 190 175 245 270 215 (This year) - Correct Answers -695.
Ft = At-1 + At-2 + .... At-n = (Add the sum of this year's demand of Jan, Feb, and Mar to
the sum of this year's demand of Apr, May, Jun to the sum of last year's demand of Oct,
Nov, Dec then divide those three sums by 3 to get the forecast of demand for the third
quarter of this year).
245 + 270 + 215 = 730
170 + 190 + 175 = 535
250 + 275 + 295 = 820
(730 + 535 + 820)/3 = 695
Here are the data for the past 21 months for actual sales of a particular product:
LAST YEAR THIS YEAR
January 370 295
February 415 350
March 405 355
April 435 440
May 430 450
June 495 385
July 415 365
August 330 290
, September 385 350
October 515
November 600
December 495
Develop a forecast for the fourth quarter using a three-quarter, weighted moving
average. Weight the most recent quarter 0.50, the second most recent 0.25, and the
third 0.25. Solve the problem using quarters, as opposed to forecasting separate
months. (Round your answer to 2 decimal places.) - Correct Answers -Q1 This Year:
(295+350+355)0.25 = 250
Q2 This Year: (440+450+385)0.25 = 318.75
Q3 This Year: (365+290+350)0.50 = 502.5
Q4 This Year: 250 + 318.75 + 502.5 = 1071.25
The following table contains the number of complaints received in a department store
for the first 6 months of operation: (Round final answer to a whole number.)
MONTH COMPLAINTS
January 36
February 51
March 83
April 94
May 112
June 143
If a three-month moving average is used to smooth this series, what would have been
the forecast for May? - Correct Answers -3 month moving average = Average of
previous three months
Forecast for May = (Feb. + Mar. + Apr.) / 3 = (51 + 83 + 94) / 3 = 76
The following tabulations are actual sales of units for six months and a starting forecast
in January.
ACTUAL FORECAST
January 104 84
February 100
March 123
April 92
May 79
June 100
