Test 2 Flashcards
Qualitative forecasting techniques
Focus groups, surveys, expert opinions, market research, Delphi method
The naive approach
Assumes demand in next period is the same as demand in most recent period
I.e. If May sales were 48 then June sales will be 48
Quantitative forecasting techniques
Moving average exponential smoothing, weighted average, linear trend, regression
Two types of quantitative models
Time series and casual models
How do you know which technique is better,
You base it on error terms. Which ever error term is closest to zero is the best
Liner trend formula
Y=mx+b
Ft=a+bt
Where t is time
Regression
Y=a+bX
What is EOQ
Economic order quantity
What is ROP
Reorder point
Who is Ben bernake
Chairman to the federal reserve from 06-14
Economist
Got 1 question wrong on SAT
Setup cost is the same as
Ordering cost
Ordering cost is the same as
Setup cost
For EOQ whenever you have a decimal round up
I.e 20.1 = 21
To cost inventory =
Avg inventory(holding cost per unit)+ #of orders placed(ordering cost per order)
Formula for exponential smoothing
F this period = f pre period+ alpha(A prev period-F pre period)
