Study Guide for Chapter 5:
1.What does the acronym CPFR represent?
a. Coordinated planning and forecasting relationships
b. Collaborative planning, forecasting, and replenishment
c. Centralized purchasing and forecasting relationships
d. Collaborative purchasing, forecasting, and receivables
2.Some measures of forecasting accuracy include mean absolute deviation, mean absolute percentage error,
and mean squared error. The formula for each is dependent on the forecast error, which is calculated by
using the equation:
a. Actual demand for period t divided by the forecasted demand for period t
b. Actual demand for period t plus the forecasted demand for period t
c. Actual demand for period t minus the forecasted demand for period t
d. The average of Actual demand for period t and forecasted demand for period t
Data Set E1
Period
Sales Volume
1
10000
2
12400
3
14250
4
15750
5
20500
6
18500
7
15750
8
20500
9
21500
10
22550
3. Using Data Set E1, what would be the forecast for period 7 using a four period moving average: (Choose
the closest answer.)
a. 17625
b. 15225
c. 15300
d. 17250
4.Using Data Set E1, what would be the forecast for period 6 using a five period weighted moving average? The
weights for each period are 0.05, 0.10, 0.20, 0.30, and 0.35 from the oldest period to the most recent
period, respectively. (Choose the closest answer.)
a. 16500
b. 17825
c. 14575
d. 16275
5.Using Data Set E1, what would be the forecast for period 6 using the exponential smoothing method? Assume
the forecast for period 5 is 14000. Use a smoothing constant of  = 0.4 (Choose the closest answer.)
a. 14575
b. 26100
c. 16600
d. 19700
6.Which one of the following is not a type of qualitative forecasting?
a. Sales force composite
b. Consumer survey
c. Jury of executive opinion
d. Naïve method
Data Set E2
Month
Actual
Forecast
1
10
11
2
8
10
3
9
8
4
6
6
5
7
8
7. A forecasting method has produced the following data over the past 5 months shown in Data Set E2. What is
the mean absolute deviation (accurate to 2 decimals)?
a. 0.60
b. 1.20
c. 1.00
d. 1.25
8.Given the following information, calculate the forecast (accurate to 2 decimals) for period three using
exponential smoothing and  = 0.3.
Period
Demand
Forecast
1
64
59
2
70
a. 36.90
b. 57.50
c. 61.50
d. 63.35
9. List and describe qualitative forecasting methods.
10. List FOUR benefits that can be achieved by implementing a successful CPFR program.
11. Why is forecast accuracy important?
12.Explain the collaborative planning, forecasting, and replenishment process.
ANSWERS:
1.B
2.C
3.D
4.A
5.C
6.D
7.C
8.D