Foundations Of Operations Management Canadian 4th Edition By Ritzman – Test Bank

Chapter 11: Managing Demand and Forecasting

11.1 End-of-Chapter Problems

1) The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.
Answer: TRUE
Diff: 1 Type: TF
Reference: Demand Patterns

2) A backorder is the same as backlog.
Answer: FALSE
Diff: 2 Type: TF
Reference: Managing Demand

3) Promotional campaigns are designed to increase sales with creative pricing.
Answer: TRUE
Diff: 2 Type: TF
Reference: Managing Demand

4) A backlog is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.
Answer: TRUE
Diff: 2 Type: TF
Reference: Managing Demand

5) A backorder is a customer order that cannot be filled immediately but is filled as soon as possible.
Answer: TRUE
Diff: 2 Type: TF
Reference: Managing Demand

6) Doctors, dentists, lawyers, and automobile repair shops are examples of service providers that use appointment systems.
Answer: TRUE
Diff: 2 Type: TF
Reference: Managing Demand

7) One of the basic time series patterns is trend.
Answer: TRUE
Diff: 1 Type: TF
Reference: Managing Demand

8) One of the basic time series patterns is random.
Answer: TRUE
Diff: 1 Type: TF
Reference: Managing Demand

9) Random variation is an aspect of demand that increases the accuracy of the forecast.
Answer: FALSE
Diff: 1 Type: TF
Reference: Demand Patterns

10) So called cyclical patterns involving gradual increases or decreases in demand over long periods of time cannot be predicted with forecasting.
Answer: FALSE
Diff: 1 Type: TF
Reference: Demand Patterns

11) Aggregation is the act of clustering several similar products or services.
Answer: TRUE
Diff: 1 Type: TF
Reference: Designing the Forecasting System

12) Aggregating products or services together generally decreases the forecast accuracy.
Answer: FALSE
Diff: 1 Type: TF
Reference: Designing the Forecasting System

13) Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.
Answer: FALSE
Diff: 1 Type: TF
Reference: Designing the Forecasting System

14) Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand.
Answer: TRUE
Diff: 1 Type: TF
Reference: Designing the Forecasting System

15) Sales force estimates are extremely useful for technological forecasting.
Answer: FALSE
Diff: 2 Type: TF
Reference: Judgment Methods