Flashcards in Exam 2 Material 3, 5, 11, 14, 17 Deck (62)

Loading flashcards...

1

## What is a forecast?

### a statement about the future value of a variable of interest

2

## What are two important aspects of forecast?

###
1. expected level of demand

2. accuracy

3

## Explain time-series forecast

### a time-ordered sequence of observations taken at regular time intervals

4

## 5 time series behaviors

###
1. trend

2. seasonality

3. cycles

4. irregular variations

5. random variation

5

## Explain trend

### a long-term upward/downward movement in data

6

## Explain Cycle

### wavelike variations lasting more than one year

7

## Explain Naive

### uses a single previous value of a time series as the basis for a forecast

8

## Explain moving average

### averages a number of the most recent actual values in generating a forecast

9

## Explain weighted moving average

### most recent values in a time series are given more weight in computing a forecast

10

## Explain exponential smoothing

### based on previous forecast plus a percentage of forecast error

11

## What is capacity?

### The upper limit or ceiling on the load that an operating unit can handle

12

## What is design capacity?

### max output rate or service capacity of an operation, process or facility it is designed for

13

## What is effective capacity?

### design capacity-allowance such as personal time and maintenance

14

## What is efficiency?

### actual/effective

15

## What is utilization?

### actual/design

16

## Explain leading

### build capacity in anticipation of future demand increases

17

## Explain following

### build capacity when demand exceeds current capacity

18

## Explain tracking

### Add capacity in relatively small increments to keep pace with increasing demand

19

## Short term considerations relate to ____ in capacity requirements

### variations

20

## long term considerations relate to ______ in capacity requirements

### level

21

## Name 3 challenges related to service capacity

###
1. need to be near customers

2. inability to store services

3. degree of demand volatility

22

## Name strategies used to offset capacity limitations and that intended to achieve a closer match between supply and demand

### pricing, promotion, discounts

23

## What is a bottleneck operation?

### an operation in a sequence of operations whose capacity is lower than that of the other operations

24

## Explain economies of scale

### if output rate is less than optimal level, increasing the output rate results in decreasing average per unit costs

25

## Explain diseconomies of scale

### if output rate is less than optimal level, increasing the output rate results in increasing average per unit costs

26

## What is the break even point?

### the volume of output at which total cost and total revenue are equal

27

## What is aggregate planning?

### production plan that will effectively utilize the organization's resources to satisfy demand

28

## What are aggregated planners concerned with?

### demand quantity and timing of demand

29

## What does aggregate planning project levels of?

### inventory, output, employment, subcontracting, backordering

30