1. If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization:
a. True b. False
2. Operations Strategy is:
a. selecting the portfolio of buffers to support the business strategy b. a waste of time c. lean, six sigma, and theory of constraints
3. Which of the following describes time series forecasting?
a. Based on cause and effect observations b. Based on historical patterns c. Based on qualitative methods d. None of the above
4. Which of the following is true about forecasts?
a. They are always wrong b. With enough statistics and math, they can precisely predict the future
5. The goal of forecasting is:
a. To understand demand and plan buffers b. To get the most accurate forecast no matter what the cost
6. Forecast Error is:
a. A source of variability that must be buffered b. Evil c. Sometimes non-existent
7. Which forecasting method is more quantitative:
a. Expert Opinion b. Linear Regression
8. The use of which alpha would result in a smoother exponential smoothing forecast:
a. .2 b. .7