Demand Forecasting In A Supply Chain

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Questions Bank

Understanding the Supply Chain
Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Drivers and Metrics
Designing Distribution Networks and Applications to e-Business
Network Design in the Supply Chain
Designing Global Supply Chain Networks
Demand Forecasting in a Supply Chain
Aggregate Planning in a Supply Chain
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Coordination in a Supply Chain
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Managing Uncertainty in a Supply Chain: Safety Inventory
Determining the Optimal Level of Product Availability
Transportation in a Supply Chain
Sourcing Decisions in a Supply Chain
Pricing and Revenue Management in a Supply Chain
Sustainability and the Supply Chain

All Questions

Question 1

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True/False

The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.

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Question 2

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True/False

For pull processes, a manager must forecast what customer demand will be in order to plan the level of available capacity and inventory.

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Question 3

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True/False

The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand because these forecasts are often very different.

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Question 4

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True/False

Leaders in many supply chains have started moving toward collaborative forecasting to improve their ability to match supply and demand.

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Question 5

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Mature products with stable demand are usually the most difficult to forecast.

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Question 6

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Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly variable.

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Question 7

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Forecasts should include both the expected value of the forecast and a measure of forecast error.

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Question 8

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Aggregate forecasts are usually more accurate than disaggregate forecasts, as they tend to have a smaller standard deviation of error relative to the mean.

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Question 9

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Collaborative forecasting based on sales to the end customer can help enterprises further up the supply chain reduce forecast error.

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Question 10

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Qualitative forecasting methods are most appropriate when there is good historical data available or when experts do not have market intelligence that is critical in making the forecast.

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Question 11

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Time series forecasting methods are the most difficult methods to implement.

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Question 12

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Causal forecasting methods find a correlation between demand and environmental factors and use estimates of what environmental factors will be to forecast future demand.

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Question 13

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The forecast error measures the difference between the forecast and the estimate.

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Question 14

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The goal of any forecasting method is to predict the systematic component of demand and estimate the random component.

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Question 15

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In adaptive forecasting, the estimates of level, trend, and seasonality are updated after each demand observation.

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Question 16

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The moving average forecast method is used when demand has an observable trend or seasonality.

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Question 17

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Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable.

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Question 18

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Long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.

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Question 19

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The basis for all strategic and planning decisions in a supply chain comes from

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the forecast of demand.

sales targets.

profitability projections.

production efficiency goals.

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Question 20

Multiple Choice

For push processes, a manager must forecast what customer demand will be in order to

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plan the service level.

plan the level of available capacity and inventory.

plan the level of productivity.

plan the level of production.

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