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?

• 0.75
• 1.00
• 1.33
• 2.33300

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