GSC FINAL EXAM STUDY GUIDE QUESTIONS AND ANSWERS
Forecasts are always wrong and therefore... - CORRECT ANSWER✅✅Should include both expected
value and a measure of forecast error — because uncertainty must be quantified.
Leaders in many supply chains are moving toward... - CORRECT ANSWER✅✅Collaborative forecasting
— because shared info reduces errors.
Mature products with stable demand are usually most difficult to forecast. - CORRECT
ANSWER✅✅False — stable demand is much easier to forecast.
Collaborative forecasting reduces upstream forecast error. - CORRECT ANSWER✅✅True — better end-
customer data improves accuracy.
Forecasting is difficult when supply or demand is highly variable. - CORRECT ANSWER✅✅True — more
variability = more uncertainty.
Mature products with stable demand are... - CORRECT ANSWER✅✅Easiest to forecast — low variability
improves accuracy.
Aggregate forecasts vs disaggregate forecasts - CORRECT ANSWER✅✅Aggregate forecasts are more
accurate — variability averages out.
Dealer with demand 100-1,900 vs 900-1,100 needs different policy because... - CORRECT
ANSWER✅✅The first dealer faces much greater uncertainty — wide demand range.
Why is 7-Eleven Japan's forecasting effective? - CORRECT ANSWER✅✅Allows real-time factors like
weather — improves accuracy.
Forecasts form the basis for all supply chain planning. - CORRECT ANSWER✅✅True — all decisions
depend on demand projections.
, When supply or demand is highly variable, forecasting... - CORRECT ANSWER✅✅Is extremely difficult —
unpredictability increases error.
Production uses forecasts for... - CORRECT ANSWER✅✅Scheduling — forecasts drive production timing.
Bullwhip effect says firms near consumer see more distortion. - CORRECT ANSWER✅✅False —
distortion increases UPSTREAM, not downstream.
Independent forecasts at each stage match supply & demand. - CORRECT ANSWER✅✅False — they
cause misalignment and bullwhip.
Personnel use forecasts for... - CORRECT ANSWER✅✅Promotions — HR planning for staffing.
Pull processes require forecasting demand. - CORRECT ANSWER✅✅False — pull reacts to actual
demand, not forecasts.
Push processes require forecasting... - CORRECT ANSWER✅✅Production levels — because decisions are
made before demand occurs.
Collaborative forecasting makes SCs... - CORRECT ANSWER✅✅More responsive AND more efficient —
reduces uncertainty.
Aggregate forecasts are less accurate than disaggregate. - CORRECT ANSWER✅✅False — aggregation
improves accuracy.
Why long-term forecasts are less accurate? - CORRECT ANSWER✅✅Long-term has larger error
deviation — more uncertainty over time.
Example of aggregate planning - CORRECT ANSWER✅✅A paper mill builds inventory during low-
demand periods — preparing for peak.
Forecasts are always wrong and therefore... - CORRECT ANSWER✅✅Should include both expected
value and a measure of forecast error — because uncertainty must be quantified.
Leaders in many supply chains are moving toward... - CORRECT ANSWER✅✅Collaborative forecasting
— because shared info reduces errors.
Mature products with stable demand are usually most difficult to forecast. - CORRECT
ANSWER✅✅False — stable demand is much easier to forecast.
Collaborative forecasting reduces upstream forecast error. - CORRECT ANSWER✅✅True — better end-
customer data improves accuracy.
Forecasting is difficult when supply or demand is highly variable. - CORRECT ANSWER✅✅True — more
variability = more uncertainty.
Mature products with stable demand are... - CORRECT ANSWER✅✅Easiest to forecast — low variability
improves accuracy.
Aggregate forecasts vs disaggregate forecasts - CORRECT ANSWER✅✅Aggregate forecasts are more
accurate — variability averages out.
Dealer with demand 100-1,900 vs 900-1,100 needs different policy because... - CORRECT
ANSWER✅✅The first dealer faces much greater uncertainty — wide demand range.
Why is 7-Eleven Japan's forecasting effective? - CORRECT ANSWER✅✅Allows real-time factors like
weather — improves accuracy.
Forecasts form the basis for all supply chain planning. - CORRECT ANSWER✅✅True — all decisions
depend on demand projections.
, When supply or demand is highly variable, forecasting... - CORRECT ANSWER✅✅Is extremely difficult —
unpredictability increases error.
Production uses forecasts for... - CORRECT ANSWER✅✅Scheduling — forecasts drive production timing.
Bullwhip effect says firms near consumer see more distortion. - CORRECT ANSWER✅✅False —
distortion increases UPSTREAM, not downstream.
Independent forecasts at each stage match supply & demand. - CORRECT ANSWER✅✅False — they
cause misalignment and bullwhip.
Personnel use forecasts for... - CORRECT ANSWER✅✅Promotions — HR planning for staffing.
Pull processes require forecasting demand. - CORRECT ANSWER✅✅False — pull reacts to actual
demand, not forecasts.
Push processes require forecasting... - CORRECT ANSWER✅✅Production levels — because decisions are
made before demand occurs.
Collaborative forecasting makes SCs... - CORRECT ANSWER✅✅More responsive AND more efficient —
reduces uncertainty.
Aggregate forecasts are less accurate than disaggregate. - CORRECT ANSWER✅✅False — aggregation
improves accuracy.
Why long-term forecasts are less accurate? - CORRECT ANSWER✅✅Long-term has larger error
deviation — more uncertainty over time.
Example of aggregate planning - CORRECT ANSWER✅✅A paper mill builds inventory during low-
demand periods — preparing for peak.
