Response to the following :
1. Consumer surplus is the difference between the customers willingness-to-pay and the price charged when the customer is willing to pay less than the price charged.
True
False
2. What is the forecast for period 15 using the 3-week moving average?
Round to the nearest whole number
|
Time period
|
Actual Demand
|
|
1
|
419.1
|
|
2
|
986.7
|
|
3
|
780.15
|
|
4
|
724.5
|
|
5
|
1468.5
|
|
6
|
1698.55
|
|
7
|
2023.35
|
|
8
|
1348.9
|
|
9
|
2445.3
|
|
10
|
2603.6
|
|
11
|
2887.5
|
|
12
|
2139.9
|
|
13
|
3399
|
|
14
|
3629.4
|
3. Time-series decomposition is always the most accurate forecasting method to use when you are introducing a new product.
True
False
4. Which of the following is NOT true about forecasting?
It is good practice to include a measure of expected forecast error with any forecast.
In exponential smoothing, a lower smoothing constant will better forecast demand for a product experiencing high growth.
It is good practice to use more than one forecasting model and then take a look at the results using common sense.
A benefit of qualitative forecasts is that they take advantage of expert opinion.
5. MRP is a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm while ERP is a means for determining the number of parts, components, and materials needed to produce a product.
True
False
6. If inventory "turns" every 4 months, which of the following is true?
This means that the average item spends 3 months in inventory
This means that the average item spends 4 weeks in inventory
This corresponds to 3 turns per year
This corresponds to 6 turns per year
7. You are tasked with ordering bottled water for an upcoming outdoor event. Bottles cost you $0.10 a piece and you can sell them that night for $2. Any Bottles of water not sold that night can sell to a secondary market for $0.05 a piece. Expected demand for water is 10,000 with a standard deviation of 1,000. How many bottles should you purchase to maximize your expected profit?
10,000
8,050
11,950
1,000
8. During the frozen time period for the MRP production schedule, changes in the production plan are typically not allowed.
True
False
9. For the following data set, what is the mean absolute deviation ROUNDED TO THE NEAREST WHOLE NUMBER? Notice that there are 3 periods of data and the bottom row is the averages.
|
Period
|
Forecast
|
Actual
|
|
1
|
100
|
105
|
|
2
|
110
|
106
|
|
3
|
120
|
116
|
|
AVG
|
110
|
109
|
10. When forecasting using moving average, if you use a shorter number of periods to calculating the moving average, it will more closely follow trends than if you use a larger number of periods.
True
False