# Operations Final Exam Prep

88 Questions | Total Attempts: 886  Settings  • 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.

• 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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