Question 1: In most cases, demand for products or services can be broken down into several components. Which of the following is not considered a component of demand?
- Average demand for a period
- A trend
- Seasonal elements
- Past data
- Autocorrelation
Question 2. In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?
- Forecast error
- Autocorrelation
- Previous demand
- Consistent demand
- Repeat demand
Question 3. Which of the following forecasting methodologies is considered a causal forecasting technique?
- Exponential smoothing
- Weighted moving average
- Linear regression
- Historical analogy
- Market research
Question 4. Which of the following forecasting methods uses executive judgment as its primary component for forecasting?
- Historical analogy
- Time series analysis
- Panel consensus
- Market research
- Linear regression
Question 5. In business forecasting, what is usually considered a long-term time period?
- Three months or longer
- Six months or longer
- One year or longer
- Two years or longer
- Ten years or longer
Question 6. In general, which forecasting time frame best identifies seasonal effects?
- Short-term forecasts
- Quick-time forecasts
- Long range forecasts
- Medium term forecasts
- Rapid change forecasts
Question 7. The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as
- economies of scale
- economies of size
- economies of shape.
- economies of scope.
- economies of shipping.
Question 8. If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate?
Question 9. The capacity focus concept can be put into practice through a mechanism called which of the following?
- Best operating level (BOL)
- Plant within a plant (PWP)
- Total quality management (TQM)
- Capacity utilization rate (CUR)
- Zero-changeover-time (ZXT)
Question 10. 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%?
- Machine B
- Machine C
- You would be indifferent between machines A and C.
- You would be indifferent between machines A and B