2024 – 1 Consumer surplus is the difference between the customers willingness to pay and the price charged when

1.     Consumer surplus is the difference between the customers willingness-to-pay and the price charged when the customer is willing to pay less than the price charged.

[removed]	True
[removed]	False

2.     What is the forecast for period 15 using the 3-week moving average? 

Round to the nearest whole number

Time period	Actual Demand
1	419.1
2	986.7
3	780.15
4	724.5
5	1468.5
6	1698.55
7	2023.35
8	1348.9
9	2445.3
10	2603.6
11	2887.5
12	2139.9
13	3399
14	3629.4

3. Time-series decomposition is always the most accurate forecasting method to use when you are introducing a new product.

[removed]	True
[removed]	False

4. Which of the following is NOT true about forecasting?

[removed]	It is good practice to include a measure of expected forecast error with any forecast.
[removed]	In exponential smoothing, a lower smoothing constant will better forecast demand for a product experiencing high growth.
[removed]	It is good practice to use more than one forecasting model and then take a look at the results using common sense.
[removed]	A benefit of qualitative forecasts is that they take advantage of expert opinion.

 

5. [removed]MRP is a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm while ERP is a means for determining the number of parts, components, and materials needed to produce a product.

[removed]	True
[removed]	False

6.  [removed] If inventory “turns” every 4 months, which of the following is true?

[removed]	This means that the average item spends 3 months in inventory
[removed]	This means that the average item spends 4 weeks in inventory
[removed]	This corresponds to 3 turns per year
[removed]	This corresponds to 6 turns per year

7.  [removed]You are tasked with ordering bottled water for an upcoming outdoor event.  Bottles cost you $0.10 a piece and you can sell them that night for $2.  Any Bottles of water not sold that night can sell to a secondary market for $0.05 a piece. Expected demand for water is 10,000 with a standard deviation of 1,000. How many bottles should you purchase to maximize your expected profit?

[removed]	10,000
[removed]	8,050
[removed]	11,950
[removed]	1,000

8.  [removed]During the frozen time period for the MRP production schedule, changes in the production plan are typically not allowed.

[removed]	True
[removed]	False

9.  [removed]For the following data set, what is the mean absolute deviation ROUNDED TO THE NEAREST WHOLE NUMBER? Notice that there are 3 periods of data and the bottom row is the averages.

Period	Forecast	Actual
1	100	105
2	110	106
3	120	116
AVG	110	109

 

10.  [removed]When forecasting using moving average, if you use a shorter number of periods to calculating the moving average, it will more closely follow trends than if you use a larger number of periods.

[removed]	True
[removed]	False