Fun Quiz Operation Management Chapter 4

Question 1

A company uses past sales data to predict future demand. Which concept is being applied?

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Question 2

Which situation best shows the importance of forecasting in production planning?

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2

Question 3

A firm experiences increasing sales every year. Which demand component is being analyzed?

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3

Question 4

Sales of ice cream increase every summer and decrease in winter. This pattern represents?

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1

Question 5

A sudden spike in product demand due to a viral trend is an example of?

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3

Question 6

Economic recession causes a decline in product demand over several years. This reflects?

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Question 7

A manager analyzes demand patterns before deciding production levels. What is the main purpose?

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2

Question 8

A company uses forecasting to estimate workforce requirements. Which area is affected?

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Question 9

Why is forecasting considered both an art and a science?

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2

Question 10

A firm incorrectly predicts demand and produces excess inventory. What does this indicate?

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Question 11

Which factor should be analyzed when selecting a forecasting method?

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Question 12

Short-term forecasting is most suitable for?

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Question 13

A company plans to build a new factory based on future demand estimates. This involves?

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2

Question 14

Which forecasting method uses the most recent data point as the forecast?

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2

Question 15

A firm uses average demand from the past 3 months to forecast next month’s demand. This is?

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Question 16

Why is understanding demand components important in forecasting?

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Question 17

A company ignores seasonal patterns when forecasting demand. What is the likely result?

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2

Question 18

Which step is most critical in ensuring effective forecasting?

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Question 19

A company notices that its sales increase steadily over several years but also fluctuate during festive seasons. Which analysis is most appropriate?

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3

Question 20

A company’s demand for the past 3 months is 80, 100, and 120 units. Using a 3-period moving average, what is the forecast for the next period?

Accepted Answer

1