Section 5: Forecasting, Scheduling, and Planning Systems Flashcards
After conducting a forecast, what should the manager who conducted the forecast do?
Have some way to determine the model’s propensity for error.
Conduct another type of forecast for the same issue.
If the forecast was qualitative, do a quantitative forecast, and vice-versa.
Relax because the process is over.
Have some way to determine the model’s propensity for error.
After conducting a forecast, managers should assess the model’s accuracy by measuring its error rates. This helps identify areas for improvement and potential adjustments to the forecast.
In the Delphi technique, the panel of experts conveys their opinions through which method?
An email
A phone call
A questionnaire
By the raising of hands at a prescribed location
A questionnaire
The Delphi technique uses questionnaires to collect opinions from a panel of experts. This allows for anonymous feedback and multiple rounds of revisions until consensus is reached.
During which of the five stages of forecast development are constraints evaluated?
Revise the forecast.
Determine objectives.
Apply the model.
Develop the model.
Develop the model.
Constraints should be evaluated during the model development stage to ensure that the model is appropriate for the forecast and can account for any limitations.
During which stage of forecast development would the owner need historical sales information?
Apply the model.
Revise and evaluate the forecast.
Determine objectives.
Develop and test the model.
Develop and test the model.
Historical sales information is essential when developing and testing the forecast model. It helps to identify trends, patterns, and other factors that inform the model’s accuracy.
Which type of quantitative forecasting method is performed to find out the basic average of a moving period in order to forecast?
Weighted moving average
Test market
Exponential smoothing
Simple moving average
Simple moving average
Simple moving average calculates an average of a set number of previous periods to forecast future data. It is straightforward and doesn’t assign different weights to each period.
Which qualitative forecasting method starts at the bottom of the organization?
Delphi technique
Pyramid method
Test market
Survey method
Pyramid method
The pyramid method, also known as bottom-up forecasting, starts at the lowest level of the organization, gathering information and estimates from employees closest to the actual operations.
Planning at the product family level in monthly time periods is performed at which planning level?
Aggregate plan
MRP
Strategic plan
MPS
Aggregate plan
Aggregate planning involves making decisions for product families over a monthly time period. This level of planning matches supply and demand at a broader, aggregated level.
Independent demand items are defined, and the finished product is provided to the customer.
Which planning level represents independent demand?
CRP
Aggregate plan
MPS
MRP
MPS
The Master Production Schedule (MPS) represents independent demand by planning for the finished products that will be sold to customers. This is where finished goods are scheduled for production.
The bill of materials is an input into which planning level?
Aggregate plan
CRP
MPS
MRP
MRP
Material Requirements Planning (MRP) uses the bill of materials to determine the materials and components needed to produce a finished product.
What is a primary benefit that ERP systems provide to organizations for managing their core business processes?
Provides a centralized database for all business functions
Allows different business functions to operate in silos
Plans only for manufacturing needs
Plans only raw materials, components, and subassemblies
Provides a centralized database for all business functions
ERP systems provide a centralized database that integrates information from various business functions, improving data consistency and decision-making across the organization.
Which functionality step of an ERP system deals with updating inventory levels, generating a purchase order for required materials, creating a production schedule, sending invoices, and tracking payments?
Security and access control
Reporting and analysis
Processing and automation
Data collection
Processing and automation
Processing and automation handle tasks such as updating inventory, generating purchase orders, creating production schedules, and managing invoicing and payments.
