Operations Final Exam Prep

88 Questions | Total Attempts: 886

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Database Quizzes & Trivia

Questions and Answers
  • 1. 
     -------- forecasts are needed to plan work-force levels, allocate budgets among divisions and schedule jobs and resources.
    • A. 

      Long-range

    • B. 

      Intermediate-range

    • C. 

      Short-range

    • D. 

      Demand planning

  • 2. 
    ____ forecasts are needed to plan for facility expansion.
    • A. 

      Long-range

    • B. 

      Short-range

    • C. 

      Intermediate-range

    • D. 

      Demand planning

  • 3. 
    ____ forecasts are needed for planning production schedules and to assign workers to jobs.
    • A. 

      Long-range

    • B. 

      Short-range

    • C. 

      Intermediate-range

    • D. 

      Demand planning

  • 4. 
    Which of the following is not one of the five characteristics of a time series?
    • A. 

      Time bucket

    • B. 

      Trend

    • C. 

      Cyclical

    • D. 

      Random variation

  • 5. 
    Repeatable periods of ups and downs over short periods of time are called ____.
    • A. 

      Trends

    • B. 

      Seasonal patterns

    • C. 

      Cyclical patterns

    • D. 

      Irregular patterns

  • 6. 
    Regular patterns in a data series that take place over long periods of time are called ____.
    • A. 

      Trends

    • B. 

      Seasonal Patterns

    • C. 

      Cyclical Patterns

    • D. 

      Irregular Patterns

  • 7. 
    The forecasting error measurement that is different in that the measurement scale factor is eliminated is
    • A. 

      MSE

    • B. 

      MAD

    • C. 

      RMSE

    • D. 

      MAPE

  • 8. 
    Which of the following is not a statistical method?
    • A. 

      Delphi

    • B. 

      Exponential Smoothing

    • C. 

      Moving agerage

    • D. 

      Linear Regression

  • 9. 
    A moving average model works best when ____ in the time series.
    • A. 

      Only irregular variation is present

    • B. 

      Only a trend is present

    • C. 

      There is no trend, seasonal, or cyclical pattern

    • D. 

      Trend, seasonal, and cyclical patterns all exist

  • 10. 
    For single exponential smoothing
    • A. 

      Large values of alpha place more emphasis on recent data

    • B. 

      Small values of alpha place more emphasis on recent data

    • C. 

      Very volatile time series with substantial random variability should use a large value for alpha

    • D. 

      Very stable time series with little random variability should use small values for alpha

  • 11. 
    Which is not true regarding simple exponential smoothing?
    • A. 

      Small values of alpha place more emphasis on past data

    • B. 

      Larger values of alpha have the advantage of quickly adjusting the forecast

    • C. 

      If alpha equals zero, the forecast will never change

    • D. 

      If alpha equals one, the forecast will never change

  • 12. 
    If single exponential smoothing is used and the time series has a negative trend, the forecast
    • A. 

      Lag

    • B. 

      Overshoot

    • C. 

      Be on target

    • D. 

      Have a MAD equal to zero

  • 13. 
    Regression analysis
    • A. 

      Is limited to one dependent and one independent variable

    • B. 

      Is best with non-linear relationships

    • C. 

      Maximizes the sum of the squared deviations between the actual time series value and the estimated values of the dependent variable

    • D. 

      Can be used with time as the independent variable

  • 14. 
    An R-square of 0.80 means
    • A. 

      80% of the variability in the independent variable is explained by the dependent variable

    • B. 

      80% of the variability in the dependent variable is explained by the independent variable

    • C. 

      80% of the variability in the dependent variable is not explained by the independent variable

    • D. 

      Multiple regression was used

  • 15. 
    If actual demand for a product is highly influenced by only random variation, the quantitative technique to use for forecasting demand is
    • A. 

      Regression

    • B. 

      Moving average

    • C. 

      Mean Absolute Percentage Error (MAPE)

    • D. 

      Delphi

  • 16. 
    Exponential smoothing...
    • A. 

      Works best for long-term forecasting

    • B. 

      Yields a mathematically optimal solution

    • C. 

      Assigns weights to past data that decay exponentially as the data gets older

    • D. 

      Cannot be adapted to handle trend

  • 17. 
    Which of the following does not fit with the Delphi method?
    • A. 

      Group of experts

    • B. 

      Brought together as a group

    • C. 

      Process iterates until a consensus is reached

    • D. 

      Qualitative as well as numerical outputs

  • 18. 
    All of the following are important in choosing a forecasting method except
    • A. 

      Smoothing constant (alpha)

    • B. 

      Time span for which forecast is made

    • C. 

      Data requirements

    • D. 

      Quantitative skills needed

  • 19. 
    All of the following are important concepts in forecasting except
    • A. 

      Determining the planning horizon length.

    • B. 

      Determining the time bucket size (i.e., year, quarter, month, week, day, etc.).

    • C. 

      Using a smoothing constant of 0.1 in Delphi methods of forecasting

    • D. 

      . Identifying cyclical patterns.

  • 20. 
    Which of the following is NOT one of the ten principles of forecasting published by a group of international experts?
    • A. 

      Use quantitative rather than qualitative methods.

    • B. 

      Never ask experts to justify their forecasts in writing.

    • C. 

      Use multiple measures of forecast accuracy

    • D. 

      Combine forecasts from approaches that differ

  • 21. 
    The purpose of aggregate planning is to
    • A. 

      Minimize the work force size

    • B. 

      Maximize the production rate

    • C. 

      Minimize the cost of meeting demand

    • D. 

      Optimize the inventory level

  • 22. 
    The words "product family", "budget allocation" and "long-term" fit best with which level of the generic framework for resource planning?
    • A. 

      Agreggate planning - Level 1

    • B. 

      Disaggregation - Level 2

    • C. 

      Execution - Level 3

    • D. 

      Capacity requirements planning

  • 23. 
    If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand. This decision would most likely be made at which planning level?
    • A. 

      Aggregate planning - Level 1

    • B. 

      Disaggregation - Level 2

    • C. 

      Execution - Level 3

    • D. 

      Capacity requirements planning

  • 24. 
    Assigning people to tasks, setting priorities for jobs and scheduling equipment fits best with which level of the generic framework for resource planning?
    • A. 

      Aggregate planning - Level 1

    • B. 

      Disaggregation - Level 2

    • C. 

      Execution - Level 3

    • D. 

      Capacity requirements planning

  • 25. 
    Setting order sizes and schedules for individual subassemblies and resources by week or day fits best with which level of the generic framework for resource planning?
    • A. 

      Aggregate planning - Level 1

    • B. 

      Disaggregation - Level 2

    • C. 

      Execution - Level 3

    • D. 

      Capacity requirements planning

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