Question

Which of the following is a common Cause-and-Effect Forecasting Model?

            Multiple Regression

            Linear Trend Forecast

            Moving Average Forecast

            Mean Absolute Deviation

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the…?

            Carbonaro effect

            Delphi effect

            Bullwhip effect

            Doppler effect

Which of the following is not a New Product forecasting approach?

            Time series forecast

            Analog/looks like forecast

            Judgement forecast with expert opinion

            Assumption based forecast

Answer 1

1. A. MULTIPLE REGRESSION

When we consider how multiple regression functions, we can say that it creates the correlation between a factor and another through determining their impact over each other and therefore, represents a form of cause and effect diagram.

2. C. BULLWHIP EFFECT

The bullwhip effect is when small discrepancies in reporting at various levels of the supply chain end up creating a significant deficit in the later stages.

3. A. TIME SERIES FORECASTING

Since time series forecasting requires an understanding of the past demand data, it cannot be used for a new product.