SCM Chapter 7

The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.

True

The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand because these forecasts are often very different.

False

Qualitative forecasting methods are most appropriate when there is good historical data available or when experts do not have market intelligence that is critical in making the forcast.

False

The opportunities from globalization are often accompanied by

significant additional risk.

For push processes, a manager must forecast what customer demand will be in order to

plan the level of production.

Long-term forecasts are usually less accurate than short-term forecasts because

long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.