ANSWERS LATEST UPDATE 2026
Removing the seasonal component from a data series (deseasonalizing) can be
accomplished by dividing each data point by its appropriate seasonal relative. -
Answers TRUE - Deseasonalized data points have been adjusted to remove seasonal
influences in order to obtain a clearer picture of the nonseasonal (trend and average)
components.
Exponential smoothing adds a percentage (called alpha) of the last period's forecast to
estimate the next period's demand. - Answers FALSE - Exponential smoothing adds
a percentage of the last period's forecast error.
The two most important factors in choosing a forecasting technique are: - Answers
cost and accuracy.
A persistent tendency for forecasts to be greater than or less than the actual values is
called: - Answers bias.
The mean absolute deviation is used to: - Answers measure forecast accuracy.
Given an actual demand of 105, a forecasted value of 97, and an alpha of 0.4, the
simple exponential smoothing forecast for the next period would be: - Answers
100.2. - Multiply the previous period's forecast error (8) by alpha and then add to the
previous period's forecast.
Capacity decisions are usually one-time decisions; once they have been made, we
know the limits of our operations. - Answers FALSE - A number of factors can either
increase or reduce a unit's capacity over time. While capacity decisions often involve
long-term commitments, we need to monitor both our performance and demand to
identify needs to adjust capacity.
Design capacity refers to the maximum output rate that can be achieved under ideal
conditions. - Answers TRUE - Design capacity is the maximum output rate or service
rate an operation, process, or facility is designed for.
Increasing productivity and also quality will result in increased effective capacity. -
Answers FALSE - Effective capacity can be increased over time by these and similar
factors.
The first, and perhaps most important, step in constraint management is to
____________ the most pressing constraint. - Answers identify. - The most pressing
constraint must first be identified before any steps to resolve it can be undertaken.