Student ID

Name
MCU fdferg

1.

2.

3.

4.

5.

6.

7.

8.

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:
A)
salesforce opinions
B)
consumer surveys
C)
the Delphi method
D)
time series analysis
E)
executive opinions
Answer: C Page: 69 Difficulty: Easy
In business, forecasts are the basis for:
A)
capacity planning
B)
budgeting
C)
sales planning
D)
production planning
E)
all of the above
Answer: E Page: 66 Difficulty: Easy
Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a
naive forecast?
A)
0
B)
.01
C)
.1 erd
D)
.5
E)
1.0
Answer: E Page: 75 Difficulty: Medium
Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the
next period be using simple exponential smoothing?
A)
36.9
B)
57.5
C)
60.5
D)
62.5
E)
65.5
Answer: D Page: 75 Difficulty: Medium
Which of the following possible values of alpha would cause exponential smoothing to respond the most
quickly to sudden changes in forecast errors?
A)
0
B)
.01
C)
.05
D)
.10
E)
.15
Answer: E Page: 75 Difficulty: Medium
A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast
for July if t = 0 in April of this year?
A)
40,450
B)
40,600 fs
sdf
C)
42,100
D)
42,250
E)
42,400
Answer: A Page: 77 Difficulty: Medium
Which of the following is used for constructing a control chart?
A)
mean absolute deviation (MAD)
B)
mean squared error (MSE)
C)
tracking signal (TS)
D)
bias
E)
none of the above s
fdeferf
Answer: B Page: 93 Difficulty: Medium
The two most important factors in choosing a forecasting technique are:
A)
cost and time horizon
B)
accuracy and time horizon
C)
cost and accuracy
D)
quantity and quality
E)
objective and subjective components

(NoteBoth sides of the paper have exam problems.)

Student ID:

9.

Answer: C Page: 96 Difficulty: Medium

Given the following historical data and weights of .5, .3, and .2, what is the three-period moving average
forecast for period 5?
Period
1
2
A)
B)
C)
D)
E)

10.

11.

12.

13.

14.

15.

16.

Value
138
142

Period
3
4

Value
148
144

144.20
144.80 erferfefrerf
144.67
143.00
144.00

Answer: B Page: 74 Difficulty: Medium

Given forecast errors of -5, -10, and +15, the MAD is:
A)
0
B)
10
C)
30
D)
175
E)
none of these
Answer: B Page: 91 Difficulty: Easy
Aggregate planning is capacity planning for:
A)
the long range
B)
the intermediate range
C)
the short range
D)
typically one to three months
E)
typically one or more years
Answer: B Page: 541 Difficulty: Easy
In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal
with:
A)
just gallons of paint, without concern for the different colors and sizes
B)
gallons of paint, but be concerned with the different colors to be produced
C)
gallons, quarts, pints, and all the different sizes to be produced
D)
all the different sizes and all the different colors by size
erfer
Answer: A Page: 542 Difficulty: Medium
Aggregate planners attempt to balance:
A)
demand and inventories fe
rferferfef
B)
demand and costs
C)
capacity and inventories
D)
capacity and costs
E)
capacity and demand
Answer: E Page: 544 Difficulty: Easy
Which of the following would not be a strategy associated with adjusting aggregate capacity to meet
expected demand?
A)
subcontract
B)
vary the size of the workforce
C)
vary the intensity of workforce utilization
D)
allow inventory levels to vary
E)
use backorders
Answer: E Page: 546-547 Difficulty: Medium
In order to use the level capacity strategy, variations in demand are met by:
A)
varying output during regular time without changing employment levels
B)
varying output during regular time by changing employment levels
C)
(a) and (b)
D)
using combination of inventories, overtime, part time, and back orders
E)
all of the above
Answer: D Page: 548 Difficulty: Medium
In using the chase strategy variations in demand could be met by:
A)
varying output during regular time without changing employment levels
B)
varying output during regular time by changing employment levels
(NoteBoth sides of the paper have exam problems.)

Student ID:

C)
D)
E)
17.

18.

(a) and (b)

varying inventory levels
all of the above

Answer: B Page: 548 Difficulty: Medium

In practice, the more commonly used techniques for aggregate planning are:
A)
mathematical techniques
B)
informal trial-and-error techniques
C)
(a) and (b) about equally
D)
simulation models
E)
linear programming optimization
Answer: B Page: 550 Difficulty: Easy
Inventory information for firm ABC:
Inventory at the end of March, 1999:
Expected demand during April, 1999:
Production expected during April, 1999:

200 units
50 units
100 units

What is the expected inventory at the end of April, 1999?

A)
350
B)
250
C)
150
D)
50
E)
none of the above
19.

20.

Answer: B Page: 552 Difficulty: Easy

Moving from the aggregate plan to a master production schedule requires:
A)
rough cut capacity planning
B)
disaggregation
C)
sub-optimization
D)
strategy formulation
E)
chase strategies
Answer: B Page: 559 Difficulty: Hard
That portion of projected inventory which enables marketing to make realistic commitments about delivery
dates for new orders is:
A)
beginning inventory
B)
safety stock inventory
C)
available-to-promise inventory
D)
high margin inventory
E)
none of the above
Answer: C Page: 561 Difficulty: Easy

(NoteBoth sides of the paper have exam problems.)