INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

Alimannao Hills, Penablanca, Cagayan

C OLLEGE OF B USINESS A DMINISTRATION AND A CCOUNTANCY

Subject Code : CBME 1

Subject Title : Operations Management & TQM
Term : Midterm Examination
Semester : Second Semester School Year: 2018- 2019

Name: ________________________________________ Course/Year&Section:_________________

Proctor: _______________________________________ Exam Score:___________________

I. MULTIPLE CHOICE. Read each question carefully before answering. Encircle the letter of your choice. If you think
there’s no possible answer, write X. Erasures and any form of alteration means wrong. (50 points)

1. Forecasts are always wrong and therefore

a) Should include both the expected value of the forecast and a measure of forecast error.
b) Should not include both the expected value of the forecast and a measure of forecast error.
c) Should only be used when there are no accurate estimates.
d) Should be missing the expected value of the forecast and a measure of forecast error

2. Mature products with stable demand

a) are usually easiest to forecast. c) cannot be forecast.
b) are usually hardest to forecast. d) do not need to be forecast
.
3. When either the supply of raw materials or the demand for the finished product is highly variable,
forecasting and the accompanying managerial decisions
a) are extremely simple c) are extremely difficult
b) are relatively straightforward d) should not be attempted

4. One of the characteristics of forecasts is

a) aggregate forecasts are usually less accurate than disaggregate forecasts.
b) disaggregate forecasts are usually more accurate than aggregate forecasts.
c) short-term forecasts are usually less accurate than long-term forecasts.
d) long-term forecasts are usually less accurate than short-term forecasts.

5. Aggregate forecasts are usually more accurate than disaggregate forecasts because
a) aggregate forecasts tend to have a larger standard deviation of error relative to the mean.
b) aggregate forecasts tend to have a smaller standard deviation of error relative to the
mean.
c) disaggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
d) disaggregate forecasts tend to have less standard deviation of error relative to the mean.

6. Forecasting methods that use historical demand to make a forecast are known as
a) qualitative forecasting methods c) causal forecasting methods
b) time series forecasting methods d) simulation forecasting methods

7. Forecasting methods that imitate the consumer choices that give rise to demand to arrive at a forecast
are known as
a) qualitative forecasting methods. c) causal forecasting methods.
b) time series forecasting methods. d) simulation forecasting methods

8. Time series forecasting methods are most appropriate when

a) there is little historical data available.
b) the basic demand pattern varies significantly from one year to the next.
c) the basic demand pattern does not vary significantly from one year to the next.
d) experts have critical market intelligence

9. Which of the following is not a step to help an organization perform effective forecasting?
a) Understand the objective of forecasting.
b) Integrate demand planning and forecasting throughout the supply chain.
 c) Understand and identify customer segments.
d) Identify and understand supplier requirements.

10. A static method of forecasting

a) assumes that the estimates of level, trend, and seasonality within the systematic
component do not vary as new demand is observed.
b) assumes that the estimates of level, trend, and seasonality within the systematic component vary as
new demand is observed.
c) the estimates of level, trend, and seasonality are updated after each demand observation.
d) all of the above are true.

11. The moving average forecast method is used when

a) demand has observable trend or seasonality.
b) demand has no observable trend or seasonality.
c) demand has observable trend and seasonality.
d) demand has no observable level or seasonality.

12. The trend corrected exponential smoothing (Holt's Model) forecast method is appropriate when
a) demand has observable trend or seasonality.
b) demand has no observable trend or seasonality.
c) demand has observable trend but no seasonality.
d) demand has no observable level or seasonality.

13. The measure of forecast error where the absolute amount of error of each forecast is averaged is
a) mean squared error (MSE)
b) mean absolute deviation (MAD)
c) mean absolute percentage error (MAPE)
d) bias

14. ________ forecasting methods assume that the demand forecast is highly correlated with certain factors in the
environment (the state of the economy, interest rates, etc.).
a) Qualitative c) Causal
b) Time-series d) Simulation

15. Operations generated forecasts often not to do with

a) Inventory requirements c) Time requirements
b) Resource needs d) Sales

16. Which of the following is not true for forecasting?

a) Forecasts are rarely perfect
b) The underlying casual system will remain same in the future
c) Forecast for group of items is accurate than individual item
d) Short range forecasts are less accurate than long range forecasts

17. Which of the following is not a forecasting technique?

a) Judgemental c) Time horizon
b) Time series d) Associative

18. In which of the following forecasting technique, subjective inputs obtained from various sources are analyzed?
a) Judgemental forecast c) Associative model
b) Time series forecast d) All of the above

19. In which of the following forecasting technique, data obtained from past experience is analyzed?
a) Judgemental forecast c) Associative model
b) Time series forecast d) All of the above

20. Delphi method is used for

a) Judgemental forecast c) Associative model
b) Time series forecast d) All of the above

21. Short term regular variations related to the calendar or time of day is known as
a) Trend c) Cycles
b) Seasonality d) Random variations
22. The forecasting time horizon that would typically be easiest to predict for would be the
a) short-range c) long-range
b) intermediate range d) medium-range

23. A forecast that projects a company's sales is a(n):

a) economic forecast c) demand forecast
b) technological forecast d) associative model

24. Quantitative methods of forecasting include

a) jury of executive opinion c) sales force composite
b) exponential smoothing d) consumer market survey

25. The method that considers several variables that are related to the variable being predicted is
a) exponential smoothing c) weighted moving average
b) multiple regression d) None of the above

26. A tracking signal

a) must be either 1, 0, or -1 for the first predicted value
b) is computed as the mean absolute deviation (MAD) divided by the running sum of the forecast errors (RSFE).
c) that is negative indicates that demand is greater than the forecast.
d) cannot be used with exponential smoothing.

27. A forecasting technique consistently produces a negative tracking signal. This means that
a) the MAPE will also consistently be negative
b) the MSE will also consistently be negative
c) the forecast technique consistently over predicts
d) the forecasting technique consistently under predicts

28. Listing products in descending order of their individual dollar contribution to the firm is called
a) value analysis c) value engineering
b) product-by-value analysis d) brainstorming

29. Which of the following is characteristic of the maturity phase?

a) Product designs begin to stabilize. c) Products are "fine-tuned."
b) Competitors are well established. d) Products are considered for termination.

30. When ordering a new zagflatz, customers must choose the style of three major components, each of which has
about ten variations. This is an example of:
a) environmentally friendly design c) CAD
b) modular design d) robust design

31. Which of the following is an external product development strategy?

a) joint venture c) new internally developed products
b) enhancements to existing products d) migrations of existing products

32. Which of the following is an internal product development strategy?

a) purchase technology or expertise by acquiring the developer
b) joint ventures
c) alliances
d) migration of existing products

33. When a customer places a request for a product or service with a producer
a) an engineering change notice is created
b) an assembly chart is created
c) a work order is created
d) a decision tree is created

34. Product design may be accomplished more quickly through the use of cross-functional teams that work on various
aspects of the design at the same time. This approach is known as
a) the "throw it over the wall" approach c) simultaneous design
b) concurrent engineering d) the house of quality

35. A house of quality would depict the strength of relationship between which two items?
a) The design team's choice of material for a wallet and the materials that were considered but rejected by the
design team.
b) The customer's desire for a durable wallet and the company's choice of material for the wallet.
c) The stitching used in your company's new product and the stitching used in a competitor's wallet.
d) The customer's need for a sealable change pocket and the customer's need for plastic inserts to display
pictures.
 Study, Study, Study & Pray
-Dr. Ronald P. Guzman

Prepared by: Noted by:

BRIAN S. INCOGNITO, MBA CB RONIE E. SUGAROL, MPBM

Program Coordinator, CBA Dean, Business Education/ / School Overseer

Reviewed by: Approved by:

DAN PAOLO E. RAMOS, MSHM PRESENITA C. AGUON, PhD.

QA for Academics and Administration Vice President for Academic Affairs