Answer Key to Quiz 1

Multiple Choice

1. This refers to part of a business organization that is responsible for producing goods or services.
Operations
2. The following form part of a supply chain except Regulator
3. Operational processes are the ______________that make up the value stream. Core processes
4. Which of the following is a primary function of an operations manager? Systems design
decisions
5. This is an area of business competition where transportation costs and convenience of
customers is important. Location
6. This embodies the reason for an organization's existence and answers the question "What
business are we in?". Mission
7. These are the characteristics that potential customers perceive as minimum standards of
acceptability for a product to be considered for purchase. Order qualifiers
8. This is the monitoring of events and trends that present either threats or opportunities for the
organization. Generally, these include competitors’ activities; changing consumer needs; legal,
economic, political, and environmental issues; the potential for new markets; and the like.
Environmental scanning
9. A forecast is a/an ___________ about the future value of a variable such as demand. Estimate
10. _____________ is a forecast method where each new forecast is based on the previous
forecast plus a percentage of the difference between that forecast and the actual value of the
series at that point. Exponential Smoothing method

Problem Solving

No. 1

March forecast – 1,500 (Naive) and 1,350 (Moving ave)

April forecast – 1,400 (Naive) and 1,450 (Moving ave)

May forecast – 1,500 (Naive) and 1,450 (Moving ave)

June forecast - 1,100 (Naive) and 1,300 (Moving ave)

July forecast - 1,250 (Naive) and 1,175 (Moving ave)

Solutions for April forecast

Naive forecast= Actual Value in March = 1,400

Moving ave. forecast = (1,500 + 1,400) / 2 = 2,900 / 2 = 1,450

No. 2

April forecast – 1,395

May forecast - 1,465

June forecast – 1,300

July forecast – 1,248

Solution for April forecast

Weighted ave. forecast = (1,200 x 20%) + (1,500 x 35%) + (1,400 x 45%) = 1,395

No. 3

May forecast – 1,440

June forecast – 1,340

Solution for September forecast

There is no forecast for September since August data were not given.