[OM] CHAP 3

Forecasting techniques generally assume an existing causal system that will continue to

exist in the future.

• True

• False

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.

• True

• False

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.

• True

• False

Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

• True

• False

Forecasts help managers plan both the system itself and provide valuable information for using the system.

• True

• False

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

• True

• False

When new products or services are introduced, focus forecasting models are an attractive option.

• False

• True

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

• True

• False

Time series techniques involve identification of explanatory variables that can be used to predict future demand.

• False

• True

The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.

• True

• False