Question

1.Which of the following are common causes for stockouts?

a. Poor forecast accuracy; i.e., underestimate demand b. Shipping issues that delay product arrival c. Parts shortages that limit production d. Excess warehouse capacity e. All of the above f. Only a, b, and c

2.Which of the following is a cost associated with overstock situations?

a. Opportunity costs b. Holding costs c. Markdown costs d. Disposal costs e. All of the above f. Only a, b, and c

3.If your data fluctuates around a consistent mean, you have a _________ pattern.

Level Tend Seasonal Cyclical None of the above

4.When the cost of excess inventory or stockouts is low, you can probably use a ____________ forecasting method.

Simple Complex Long Sophisticated None of the above

5.Which of the following are goals of S&OP?

a. Get everyone to agree to the nature of the business environment b. Get everyone to agree to their specific roles in supporting the corporate strategy. c. Get everyone to agree to how to work together to synchronize the firm’s value-added activities. d. Get everyone to agree to a single forecast; i.e., one-forecast planning. e. All of the above f. Only c and d

6.Within S&OP’s Supply Review, you must examine manufacturing capacity, supply chain inventory, transportation, and logistics/DC capacity. You should also develop contingency plans.

TrueFalse

7.Under which circumstances would you use a qualitative forecast?

a. Domain knowledge is critical b. Pertinent data is scarce c. You have access to qualified key informants d. All of the above e. Only a and b

8.If you are using a simple-moving average and you want your forecast to ignore occasional noise in the data, which of the following is true?   

     

a. You want a stable forecast b. You want a responsible forecast c. You use more periods of data d. You use fewer periods of data e. Only a and c f. Only b and d

9.Given the following forecast and demand information, what is the MSE?

Demand	Forcast	Error	Absolute Value	Squared Error	Absolute Percent Error
1258	1295	-37.00	37.00	1369.00	0.0294
1267	1275	-8.33	8.33	69.44	0.0066
1256	1262	-6.00	6.00	36.00	0.0048
1268	1260	7.67	7.67	58.78	0.0060
1277	1264	13.33	13.33	177.78	0.0104
1277	1267	10.00	10.00	100.00	0.0078
1297	1274	23.00	23.00	529.00	0.0177

335.08 56.17 334.29 14.15 None of these

10.Given the following forecast and demand information, what is the MAPE?

Demand	Forcast	Error	Absolute Value	Squared Error	Absolute Percent Error
1258	1295	-37.00	37.00	1369.00	0.0294
1267	1275	-8.33	8.33	69.44	0.0066
1256	1262	-6.00	6.00	36.00	0.0048
1268	1260	7.67	7.67	58.78	0.0060
1277	1264	13.33	13.33	177.78	0.0104
1277	1267	10.00	10.00	100.00	0.0078
1297	1274	23.00	23.00	529.00	0.0177

.0123 .0136 .0050 .0118 None of these