OPMA 3306 Final(A+ Guaranteed Answers)
Which of the following forecasting methodologies is considered a time series forecasting technique?
correct answers Simple moving average
A company wants to forecast demand using the weighted moving average. If the company uses two prior
yearly sales values (i.e., year 2012=110 and year 2013=130), and we want to weight year 2012 at 10%
and year 2013 at 90%, which of the following is the weighted moving average forecast for year 2014?
correct answers Forecast for 2014 = (110x0.1) + (130x0.9) = 11 + 117 = 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing
constant alpha of 0.1, what is the exponential smoothing forecast value for the following period? correct
answers Forecast = 230 + 0.1 x (250-230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective
forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be
computed from this data? correct answers MAD = ABS((100-120)+(105-120)+(135-120)+(150-120))/4 =
80/4 =20
If you were selecting from a variety of forecasting models based on MAD, which of the following MAD
values from the same data would reflect the most accurate model? correct answers Since the same data is
being used in the question, MAPE would be least when MAD was smallest.
A company hires you to develop a linear regression forecasting model. Based on the company's historical
sales information, you determine the intercept value of the model to be 1,200. You also find the slope
value is minus 50. If after developing the model you are given of x=10, which of the following is the
resulting forecast value using this model? correct answers The linear regression line is of the form Y = a +
bX, where Y is the value of the dependent variable that we are solving for, a is the Y intercept, b is the
slope, and X is the independent variable. Hence, Y = 1,200 + (-50) x 10 = 700.
What is a work breakdown structure? correct answers A def of the hierarchy of project tasks, subtasks,
and work packages
You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for
each project and separate project managers will be responsible for separate projects. These project
managers will report to you. Which project management structure is being used? correct answers Matrix
Project
, In conducting aggregate operations planning there are a number of required inputs. Which of the
following are inputs considered external to the firm? correct answers Raw material availability and
competitor's behavior
In conducting aggregate operations planning there are a number of required inputs. Which of the
following are considered inputs internal to the firm? correct answers Current physical capacity and
current workforce
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies
is which of the following pure production planning strategies? correct answers Chase
Which of the following costs are relevant to aggregate operations planning? correct answers Backordering
costs
Using the cut-and-dry method for aggregate operations planning we can determine the production
requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and
the necessary safety stock is 20% of the demand forecast, which of the following is the production
requirement? correct answers 1,340 (1200;20% of demand=240 and INV.=100) so, 1200+240-100=1340
From an operational perspective yield management is most effective under which of the following
circumstances? correct answers Inventory is perishable
Which of the following industry types have high expected benefits from the application of MRP? correct
answers Assemble-to-stock
Which of the following is an input to the master production schedule (MPS)? correct answers The
aggregate plan
One of the main purposes of a MRP system is which of the following? correct answers Develop schedules
specifying when each component should be ordered or produced
Which of the following is an input file necessary to run an MRP system? correct answers Bill of materials
(BOM) file
Which of the following forecasting methodologies is considered a time series forecasting technique?
correct answers Simple moving average
A company wants to forecast demand using the weighted moving average. If the company uses two prior
yearly sales values (i.e., year 2012=110 and year 2013=130), and we want to weight year 2012 at 10%
and year 2013 at 90%, which of the following is the weighted moving average forecast for year 2014?
correct answers Forecast for 2014 = (110x0.1) + (130x0.9) = 11 + 117 = 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing
constant alpha of 0.1, what is the exponential smoothing forecast value for the following period? correct
answers Forecast = 230 + 0.1 x (250-230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective
forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be
computed from this data? correct answers MAD = ABS((100-120)+(105-120)+(135-120)+(150-120))/4 =
80/4 =20
If you were selecting from a variety of forecasting models based on MAD, which of the following MAD
values from the same data would reflect the most accurate model? correct answers Since the same data is
being used in the question, MAPE would be least when MAD was smallest.
A company hires you to develop a linear regression forecasting model. Based on the company's historical
sales information, you determine the intercept value of the model to be 1,200. You also find the slope
value is minus 50. If after developing the model you are given of x=10, which of the following is the
resulting forecast value using this model? correct answers The linear regression line is of the form Y = a +
bX, where Y is the value of the dependent variable that we are solving for, a is the Y intercept, b is the
slope, and X is the independent variable. Hence, Y = 1,200 + (-50) x 10 = 700.
What is a work breakdown structure? correct answers A def of the hierarchy of project tasks, subtasks,
and work packages
You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for
each project and separate project managers will be responsible for separate projects. These project
managers will report to you. Which project management structure is being used? correct answers Matrix
Project
, In conducting aggregate operations planning there are a number of required inputs. Which of the
following are inputs considered external to the firm? correct answers Raw material availability and
competitor's behavior
In conducting aggregate operations planning there are a number of required inputs. Which of the
following are considered inputs internal to the firm? correct answers Current physical capacity and
current workforce
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies
is which of the following pure production planning strategies? correct answers Chase
Which of the following costs are relevant to aggregate operations planning? correct answers Backordering
costs
Using the cut-and-dry method for aggregate operations planning we can determine the production
requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and
the necessary safety stock is 20% of the demand forecast, which of the following is the production
requirement? correct answers 1,340 (1200;20% of demand=240 and INV.=100) so, 1200+240-100=1340
From an operational perspective yield management is most effective under which of the following
circumstances? correct answers Inventory is perishable
Which of the following industry types have high expected benefits from the application of MRP? correct
answers Assemble-to-stock
Which of the following is an input to the master production schedule (MPS)? correct answers The
aggregate plan
One of the main purposes of a MRP system is which of the following? correct answers Develop schedules
specifying when each component should be ordered or produced
Which of the following is an input file necessary to run an MRP system? correct answers Bill of materials
(BOM) file
