Question 1

The modern day business environment must deal with a more homogenous consumer base,which has caused the evolution of a more "push" oriented environment where suppliers must focus on manufacturing high volumes of standardized goods.

Accepted Answer

The statement is incorrect. The modern-day business environment has actually become more focused on serving diverse consumer needs, leading to a more "pull" oriented environment where suppliers must focus on customization and personalized goods to meet consumer demands.

Question 2

Some of the leading suppliers of CPFR solutions mentioned in the textbook are JDA Software Group,i2 Technologies,and Oracle.

Accepted Answer

The textbook mentions JDA Software Group, i2 Technologies, and Oracle as some of the leading suppliers of CPFR solutions. Therefore, the statement is true.

Question 3

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

Accepted Answer

The ultimate goal of any forecasting technique is to minimize the deviation between actual demand and the forecast.

Question 4

Some of the important steps involved in implementation of a CPRF process model include developing a collaborative arrangement,creating a sales forecast,creating an order forecast,and generating those orders.

Accepted Answer

The steps mentioned are a part of the Sales and Operations Planning (S&OP) process model, not the CPRF process model. The CPRF process model involves steps such as developing a cost model, conducting sensitivity analysis and implementing the model.

Question 5

The difference between a simple regression forecast and a multiple regression forecast is that simple regression is used when there is only one explanatory (or independent)variable,while multiple regression is used when there are numerous explanatory variables.

Accepted Answer

This is a correct statement. Simple regression only uses one explanatory variable, while multiple regression uses multiple explanatory variables.

Question 6

The objective of CPFR is to optimize the supply chain by improving demand forecast accuracy,delivering the right product at the right time to the right location,reducing inventories across the supply chain,avoiding stock-outs,and improving customer service.As a result of the many benefits attributed to CPFR,this business practice has been widely adopted.

Accepted Answer

The answer of The objective of CPFR is to optimize...

Question 7

One of the goals of an effective CPFR system is to minimize the negative impacts of the bullwhip effect on supply chains.

Accepted Answer

One of the benefits of CPFR is that it helps to reduce the bullwhip effect on supply chains by providing accurate and timely demand information, improving collaboration between partners, and reducing uncertainty and variability in the supply chain. Therefore, the statement is true.

Question 8

According to the text,the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

Accepted Answer

The text states that the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

Question 9

The Institute of Supply Management (ISM)surveys more than 300 purchasing and supply executives in the United States using a questionnaire seeking information on "changes in production,new orders,new export orders,imports,employment,inventories,prices,lead-times,and the timeliness of supplier deliveries in their companies comparing the current month to the previous month." The ISM Report on Business focuses only on the manufacturing sector.

Accepted Answer

The ISM Report on Business includes both the Manufacturing and Non-Manufacturing (Services) sectors.

Question 10

Examples of forecasting accuracy measures are Mean Absolute Deviation,Mean Absolute Percentage Error,and Mean Square Error.

Accepted Answer

These are all commonly used measures of forecasting accuracy.

Question 11

Associative forecasting methods are based on opinions and intuition.

Accepted Answer

Associative forecasting methods, also known as causal models, rely on the identification and analysis of variables that are believed to influence the variable being forecasted, rather than on opinions and intuition.

Question 12

As tighter control limits are instituted for the tracking signal,there is a greater probability of finding exceptions that require no action,but it also means catching changes in demand earlier.

Accepted Answer

Tighter control limits increase the sensitivity of the tracking signal, making it more likely to detect minor changes in demand early, even if no action is needed.

Question 13

The true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts,not from the exchange of forecasting information.

Accepted Answer

The true value of CPFR comes from both the exchange of forecasting information and the use of sophisticated forecasting algorithms to provide companies with highly accurate forecasts. CPFR requires a collaborative approach that involves joint strategic planning, communication, and information sharing between trading partners. By combining data from both sides and using advanced analytics, CPFR enables companies to make more informed decisions and respond faster to changes in customer demand.

Question 14

Cause-and-Effect Models can have multiple independent variables.

Accepted Answer

Cause-and-Effect Models can have multiple independent variables that contribute to a single dependent variable.

Question 15

The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.

Accepted Answer

While achieving high forecast accuracy is important, setting a goal of 98.7% accuracy may be unrealistic or unnecessary for certain industries or products. It is more common to set a range of acceptable forecast error and to continuously work to improve forecasting techniques to minimize the error.

Question 16

Quantitative forecasting methods are based on opinions and intuition,whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.

Accepted Answer

This statement is actually incorrect. Quantitative forecasting methods rely on mathematical models and historical data to generate forecasts, while qualitative methods rely on opinions and intuition.

Question 17

In the Delphi forecasting method,a group of internal and external experts are surveyed during several rounds in terms of future events and long-term forecasts of demand but the group members do not physically meet.

Accepted Answer

In the Delphi method, the group members are surveyed anonymously and do not physically meet.

Question 18

Some of the benefits of CPFR include strengthening partner relationships,providing an analysis of sales and order forecasts both upstream and downstream,and allowing collaboration on future requirements and planning.

Accepted Answer

The statement correctly lists some of the benefits of CPFR, including strengthening partner relationships, analyzing sales and order forecasts upstream and downstream, and collaborating on future requirements and planning.

Question 19

If you felt that recent demand trends were more significant,and thus should be emphasized more in formulating a forecast,then in forecasting demand for the upcoming demand period,you would probably favor using a simple moving average over the conventional weighted moving average.

Accepted Answer

A weighted moving average allows for the weights to be adjusted so that more recent demand trends can be emphasized more, unlike a simple moving average which treats all periods equally.

Question 20

If you were calculating a forecast using an exponential smoothing model,a calculation using a = 0.2 would be putting a greater emphasis on recent data,while a calculation using a = 0.8 would be putting a greater emphasis on past data.Thus a lower a is more responsive to changes in demand in the most recent periods.

Accepted Answer

In exponential smoothing, a higher alpha (α) value like 0.8 puts more emphasis on recent data, making it more responsive to changes, while a lower alpha like 0.2 emphasizes past data more.

Quiz 5: Demand Forecasting