Question

DO NOT ANSWER AT ALL IF YOU ARE ONLY ANSWERING 5 QUESTIONS THANK YOU

True or false

1. Process design includes selecting the appropriate technology, sizing the process over time, determining the role of inventory in the process, and locating the process.

2. Operations and supply chain strategy is concerned with setting broad policies and plans for using the resources of a firm and must be integrated with corporate strategy.

3. "Social" pertains to fair and beneficial business practices toward labour, the community, and the region in which a firm conducts its business.

4. Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.

5. The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast.

6. Single exponential smoothing has the shortcoming of lagging changes in demand.

7. Random errors can be defined as those that cannot be explained by the forecast model being used.

8. When forecast errors occur in a normally distributed pattern, the ratio of the mean absolute deviation to the standard deviation is 2 to 1, or 2 x MAD = 1 standard deviation.

9. Often leading indicators are not causal relationships, but in some indirect way, they may suggest that some other things might happen.

10. Without probabilities and payoffs, a decision tree is not capable of generating a solution.

11. The capacity utilization rate is found by dividing best operating level by capacity used.

12. The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

13. The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale.

14. Making adjustments to eliminate the variance between planned and actual output is tied into intermediate range capacity planning.

51. Which of the following forecasting methodologies is considered a time series forecasting technique?

A.   Simple moving average

2. Market research

3. Leading indicators

4. Historical analogy

5. Simulation

52. A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2013 = 130, year 2014 = 120, year 2015 = 140, and year 2016 = 210), which of the following is the simple moving average forecast for year 2017?

1. 100.5

2. 150.0

C.   42.5

D. 145.5

E. 155.0

53. 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 2015 at 20% and year 2016 at 80%, which of the following is the weighted moving average forecast for year 2017?

A. 126

B. 128

C. 133

D. 38

E. 142

54. Given a prior forecast demand value of 270, 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?

A. 230

B. 232

3. 238

4. 268

5. 250

55. A company has actual unit demand for three consecutive years of 130, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?

1. 1

2. 6

C. 7

D. 15

E. 123

56. A company has actual unit demand for four consecutive years of 140, 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?

1. 2.5

2. 10

C. 20

D. 22.5

E. 30

57. A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 50. Which of the following is the company's tracking signal?

A.   Cannot be calculated based on this information

B.   bout 14.3

3. More than 35

4. Exactly 35

5. Exactly 10

58. At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%?

A. Machine A

B. Machine B

C. Machine C

D. You would be indifferent between machines A and C

E. You would be indifferent between machines A and B

59. What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

1. Time

B. Location

     C. Demand volatility

D. Utilization impacts service

      E. All of these

60. Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?

     A. Intermediate-range

2. Long-range

     C. Short-range

D. Current

      E. Upcoming

Answer 1

Answering the first four questions as per Chegg policy

Answer 51: Option A - Simple moving average

Explanation: Simple moving average method of forecasting is considered a time series forecasting technique.

Answer 52: Option B – 150.0

Explanation: In simple moving average method of forecasting the next forecast is the simple mean of last transactions. Computing the forecast for year 2017,

Forecast_2017 = (Sales_2013 + Sales_2014 + Sales_2015 + Sales_2016) / 4

= (130 + 120 + 140 + 210) / 4 = 150

Answer 53: Option A – 126

Explanation: In the weighted moving average method of forecasting, the new forecast is the sum of previous forecasts adjusted for various weights.

Forecast_2017 = (Sales_2015 x 0.20) + (Sales_2016 x 0.80)

= (110 x 0.20) + (130 x 0.80)

= 126.00

Answer 54: Option D - 268

Explanation: The forecast using exponential smoothing method is computed using the following formula:

Forecast_Next = Forecast_Prior + [Alpha x (Actual_Prior – Forecast_Prior)]

= 270 + [0.10 x (250 – 270)]

= 268.00