Forecasting

Independent demand is calculated, whereas dependent demand is forecast.

• True

• False

Computing the cumulative error is a way of determining whether forecasts are biased.

• True

• False

In the period between the moment a promotion is announced and the moment it takes effect, demand tends to increase.

• True

• False

Accurate forecasts can be obtained if the necessary time and effort are invested.

• True

• False

The maturity phase of the product life cycle is characterized by relatively stable demand.

• True

• False

In forecasting, the term “noise” refers to variations caused by the residual component.

• True

• False

In the moving average method, the higher the value of k, the more the forecasts are influenced by random fluctuations in demand.

• True

• False

One of the disadvantages of the exponential smoothing method is that it requires more data than the other methods.

• True

• False

When using the exponential smoothing method, a smaller smoothing factor awill have more of a noise-reduction impact and produce more stable forecasts.

• True

• False

When comparing the errors obtained using different forecasting methods, the same conclusions should be reached regardless of the method of error calculation used.

• True

• False