Which of the following is not necessarily an element of a good forecast?

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OM Testbank 3

Terms in this set (115)

Since a primary goal of

operations management to

match supply to demand,

forecasts become a basic input

to the decision process

because they provide

information on past demand.

false

Forecasting techniques

generally assume that the same

causal system that existed in

the past will continue to exist in

the future.

true

Forecasts are rarely perfect.true

Generally the responsibility for

preparing demand forecasts

for finished goods or services

lies with operations rather than

marketing or sales

departments.

false

1.1. Forecasting techniques generally assume an existing causal system that will continue

to exist in the future.

True

False

1. Forecasting techniques generally assume an existing causal system that will continue to exist in the

future.

TRUE

Forecasts depend on the rules of the game remaining reasonably constant.

2.2. For new products in a strong growth mode, a low alpha will minimize forecast errors

when using exponential smoothing techniques.

True

False

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

exponential smoothing techniques.

FALSE

3.3. 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

3. Once accepted by managers, forecasts should be held firm regardless of new input since many plans

have been made using the original forecast.

FALSE

Flexibility to accommodate major changes is important to good forecasting.

4.4. 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

4. 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.

FALSE

Forecasting for an individual item is more difficult than forecasting for a number of items.

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

for using the system.

True

False

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

system.

TRUE

Both planning and use are shaped by forecasts.

6.6. 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

6. Organizations that are capable of responding quickly to changing requirements can use a shorter

forecast horizon and therefore benefit from more accurate forecasts.

TRUE

If an organization can react quicker, its forecasts need not be so long term.

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

attractive option.

Which one of these is not an element of a good forecast?

Which of the following is an element of a good forecast?

Which of the following is a characteristic of good forecast?

What are four components of a forecast?