UARK SCMT 2103 CHECK YOUR
UNDERSTANDINGS (EXAM 2)
Some measures of forecast accuracy include the running sum of forecast errors, the
mean absolute percentage error, and mean forecast error. The formula for each is
dependent on the forecast error, which is calculated by using the equation: - Correct
Answers -Actual demand for period t minus the forecasted demand for period t
If forecast error is negative, then the forecast was too _____. - Correct Answers -high
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
Calculating the __________ means taking the running sum of the forecast errors and
dividing it by the number of observations or the number of forecasts. - Correct Answers
-mean forecast error
If the forecasts on average are too high, RSFE and MFE will be _______. - Correct
Answers -negative
Which forecast error metric is used to measure forecast error magnitude? - Correct
Answers -Mean absolute percent error (MAPE)
Standard deviation of forecast error
Assume the two SKUs have the same MAPE. However, SKU A has a lower standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -less
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 15% 800 84,323
B 13% 750 83,527
C 24% 650 69,744
D 17% 500 50,579 - Correct Answers -Product D
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
, Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 13% 825
B 10% 800
C 9% 775
D 7% 780 - Correct Answers -Product D
MAPE is used to measure forecast error __________ - Correct Answers -magnitude
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
Calculating the __________ means taking the running sum of the forecast errors and
dividing it by the number of observations or the number of forecasts. - Correct Answers
-mean forecast error
If the forecasts on average are too low, RSFE and MFE will be _______. - Correct
Answers -positive
Assume the two SKUs have the same MAPE. However, SKU A has a higher standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -more
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 8% 650 68,486
B 20% 675 70,520
C 19% 405 42,445
D 17% 500 52,232 - Correct Answers -Product C
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 15% 800
B 13% 750
C 24% 650
D 17% 500 - Correct Answers -Product B
At the economy level, the price of transportation is ______________. At the carrier
level, it is __________________. - Correct Answers -Inelastic, elastic
What percentage of total GDP does transportation account for? - Correct Answers -9%
UNDERSTANDINGS (EXAM 2)
Some measures of forecast accuracy include the running sum of forecast errors, the
mean absolute percentage error, and mean forecast error. The formula for each is
dependent on the forecast error, which is calculated by using the equation: - Correct
Answers -Actual demand for period t minus the forecasted demand for period t
If forecast error is negative, then the forecast was too _____. - Correct Answers -high
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
Calculating the __________ means taking the running sum of the forecast errors and
dividing it by the number of observations or the number of forecasts. - Correct Answers
-mean forecast error
If the forecasts on average are too high, RSFE and MFE will be _______. - Correct
Answers -negative
Which forecast error metric is used to measure forecast error magnitude? - Correct
Answers -Mean absolute percent error (MAPE)
Standard deviation of forecast error
Assume the two SKUs have the same MAPE. However, SKU A has a lower standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -less
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 15% 800 84,323
B 13% 750 83,527
C 24% 650 69,744
D 17% 500 50,579 - Correct Answers -Product D
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
, Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 13% 825
B 10% 800
C 9% 775
D 7% 780 - Correct Answers -Product D
MAPE is used to measure forecast error __________ - Correct Answers -magnitude
A forecast is known to be unbiased. The magnitude must then _____. - Correct
Answers -cannot tell what magnitude would be from the bias.
Calculating the __________ means taking the running sum of the forecast errors and
dividing it by the number of observations or the number of forecasts. - Correct Answers
-mean forecast error
If the forecasts on average are too low, RSFE and MFE will be _______. - Correct
Answers -positive
Assume the two SKUs have the same MAPE. However, SKU A has a higher standard
deviation of forecast error than SKU B. All other things being equal, we would carry
______ safety stock for SKU A. - Correct Answers -more
Based on the table below, which product's forecast is the least biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 8% 650 68,486
B 20% 675 70,520
C 19% 405 42,445
D 17% 500 52,232 - Correct Answers -Product C
Based on the table below, which product's forecast indicates the lowest magnitude of
forecast error?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE)
A 15% 800
B 13% 750
C 24% 650
D 17% 500 - Correct Answers -Product B
At the economy level, the price of transportation is ______________. At the carrier
level, it is __________________. - Correct Answers -Inelastic, elastic
What percentage of total GDP does transportation account for? - Correct Answers -9%
