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PCO MCQ

This document discusses various forecasting methods and terms. It provides definitions and identifies the appropriate forecasting method to use depending on the situation, including short-term versus long-term forecasting, new product launches, and qualitative versus quantitative methods. It also defines common measures for calculating forecast error such as mean error, mean absolute deviation, mean square error, and mean absolute percentage error.

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Neel
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2K views

PCO MCQ

This document discusses various forecasting methods and terms. It provides definitions and identifies the appropriate forecasting method to use depending on the situation, including short-term versus long-term forecasting, new product launches, and qualitative versus quantitative methods. It also defines common measures for calculating forecast error such as mean error, mean absolute deviation, mean square error, and mean absolute percentage error.

Uploaded by

Neel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Decisions relating to production scheduling involve:


Answer: shortterm forecasting.
2.Decisions relating to the sales and operations planning (aggregate planning) in
volve:
Answer: mediumterm forecasting.
3.Which one of the following does not fall under qualitative forecasting method
?
Answer: Moving average methods
4.For which of the following situation(s) is the market research method of forec
asting suitable?
Answer:
when a firm is working with stable technology, planning moderate changes
on product innovations or market testing one of its new offerings.
5.Which of the following forecasting method is suitable for launching new prod
ucts?
Answer: Judgmental methods
6.Which of the following method(s) is(are) suitable for forecasting the demand
of a product?
Answer: Delphi method and judgmental method
7.What is the measure of forecast error which calculates the average forecast err
or over n time periods known as?
Answer: Mean error
8.The measure of forecast error which calculates the average of absolute differe
nces betweenthe actual and the forecast demand over n time periods is known as
Answer: mean absolute deviation
9.The measure of forecast error which calculates the average of square of the for
ecast errors is known as:
Answer: meansquare error
10.The measure of forecast error which calculates the average of absolute foreca
st errors as a percentage of the actual demand is known as:
Answer: mean absolute percentage error

11.The longer the forecast horizon, the more accurate the forecast is.
Answer: False
12. Aggregate forecasts are more accurate.
Answer: True
13. Longterm forecasts are usually more accurate than shortterm forecasts.
Answer: False
14.Shortterm forecast is employed to handle seasonality in demand across a tim
e period of 6 months to 1 year.
15.Longterm forecasts are used for facility location selection, capacity planning,
and process selection decisions.
Answer: True
16.Qualitative forecasting methods are more suitable when there is little historic
al data available.
Answer: True
17.Level is one of the elements of the systematic component of demand which
measures the rate of growth or decline in demand for the next period.
Answer: False
18.In adaptive forecasting, the estimates of level, trend, and seasonality are upd
ated after each demand observation.
Your Answer: False
19. Moving average method is one of the methods of static forecasting.
Your Answer: False
20.Simple exponential method is employed when the demand has no observable
trend or seasonality.
Your Answer: True

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