SCMT 2103 ACTUAL FINALS ANSWERS AND
QUESTIONS SET A+
✔✔1.85 - ✔✔Consider the following analysis for four SKUs in a product category. Which
is the best estimate of the turns of the category as a whole?
SKU-Annual Sales-Average Inventory- Inventory Turns
SKU 1 1,600 110 14.55
SKU 2 18,000 10,000 1.80
SKU 3 18,000 10,000 1.80
SKU 4 18,000 10,000 1.80
Totals 55,600 30,110 ?
✔✔The logistics lead time and the customer's order cycle - ✔✔The lead time gap is
defined as the difference between ________________________.
✔✔shorter than - ✔✔One of the fundamental challenges faced by supply chain
managers is the gap created when the customer's order cycle is ___________ than the
total lead time.
✔✔increases - ✔✔As supply chains become longer, supply uncertainty
_____________.
✔✔from when an order is placed until it's actually received and ready for use or sale -
✔✔Logistics lead time is the time ________________.
✔✔as the planning horizon decreases - ✔✔Forecast error is expected to decrease
___________________.
✔✔causal models require input from multiple forecasters - ✔✔Which is NOT a
disadvantage of causal models relative to time series models?
, ✔✔long term; short term - ✔✔Causal models might best be used for ______ forecasting
while time series model are mostly used for ________ forecasting.
✔✔judgment capturing - ✔✔Bob is really good at forecasting demand for televisions,
but he couldn't tell you how he does it, exactly. The ____________ method would be a
good approach for helping Bob quantify his method.
✔✔qualitative - ✔✔Judgmental methods are __________ forecasting approaches.
✔✔causal; time series - ✔✔Two major classifications of quantitative forecasting
methods are _______ and ________ models.
✔✔Level - ✔✔Which component of demand represents the demand that would like
exist without the existence of either trend or seasonality?
✔✔an unexplained decrease in sales of bottled water on the hottest day of the year. -
✔✔Which of the following is an example of noise in demand data?
✔✔Trend - ✔✔Which component of demand represents the degree to which the data is
increasing or decreasing over time?
✔✔cannot be explained - ✔✔Noise is random variation in demand that _____.
✔✔consumption; purchase - ✔✔In pantry loading, the rate of ____________ is the
same, but the frequency of ________ is reduced.
✔✔decreases; more - ✔✔As the number of periods included in a moving average
forecast model _______, the forecast becomes ___________ responsive.
✔✔10 - ✔✔Given a sample of weekly sales data of 15, 5, 10, and 10, what is the four-
period moving average sales forecast for the next week?
✔✔0 and 1 - ✔✔In an exponential smoothing model, alpha can take on any value
between ______.
✔✔increases; more - ✔✔As the number of periods included in a moving average
forecast model _______, the forecast becomes ________________ stable.
✔✔exponential smoothing - ✔✔Adjusting last period's forecast by a fraction of last
period's forecast error is called _______.
✔✔Product B - ✔✔Based on the table below, which product's forecast indicates the
lowest magnitude of forecast error?
QUESTIONS SET A+
✔✔1.85 - ✔✔Consider the following analysis for four SKUs in a product category. Which
is the best estimate of the turns of the category as a whole?
SKU-Annual Sales-Average Inventory- Inventory Turns
SKU 1 1,600 110 14.55
SKU 2 18,000 10,000 1.80
SKU 3 18,000 10,000 1.80
SKU 4 18,000 10,000 1.80
Totals 55,600 30,110 ?
✔✔The logistics lead time and the customer's order cycle - ✔✔The lead time gap is
defined as the difference between ________________________.
✔✔shorter than - ✔✔One of the fundamental challenges faced by supply chain
managers is the gap created when the customer's order cycle is ___________ than the
total lead time.
✔✔increases - ✔✔As supply chains become longer, supply uncertainty
_____________.
✔✔from when an order is placed until it's actually received and ready for use or sale -
✔✔Logistics lead time is the time ________________.
✔✔as the planning horizon decreases - ✔✔Forecast error is expected to decrease
___________________.
✔✔causal models require input from multiple forecasters - ✔✔Which is NOT a
disadvantage of causal models relative to time series models?
, ✔✔long term; short term - ✔✔Causal models might best be used for ______ forecasting
while time series model are mostly used for ________ forecasting.
✔✔judgment capturing - ✔✔Bob is really good at forecasting demand for televisions,
but he couldn't tell you how he does it, exactly. The ____________ method would be a
good approach for helping Bob quantify his method.
✔✔qualitative - ✔✔Judgmental methods are __________ forecasting approaches.
✔✔causal; time series - ✔✔Two major classifications of quantitative forecasting
methods are _______ and ________ models.
✔✔Level - ✔✔Which component of demand represents the demand that would like
exist without the existence of either trend or seasonality?
✔✔an unexplained decrease in sales of bottled water on the hottest day of the year. -
✔✔Which of the following is an example of noise in demand data?
✔✔Trend - ✔✔Which component of demand represents the degree to which the data is
increasing or decreasing over time?
✔✔cannot be explained - ✔✔Noise is random variation in demand that _____.
✔✔consumption; purchase - ✔✔In pantry loading, the rate of ____________ is the
same, but the frequency of ________ is reduced.
✔✔decreases; more - ✔✔As the number of periods included in a moving average
forecast model _______, the forecast becomes ___________ responsive.
✔✔10 - ✔✔Given a sample of weekly sales data of 15, 5, 10, and 10, what is the four-
period moving average sales forecast for the next week?
✔✔0 and 1 - ✔✔In an exponential smoothing model, alpha can take on any value
between ______.
✔✔increases; more - ✔✔As the number of periods included in a moving average
forecast model _______, the forecast becomes ________________ stable.
✔✔exponential smoothing - ✔✔Adjusting last period's forecast by a fraction of last
period's forecast error is called _______.
✔✔Product B - ✔✔Based on the table below, which product's forecast indicates the
lowest magnitude of forecast error?
