Part of strategy formulation

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Reference no: EM132225494

1. Suppose a firm uses an A/F ratios approach to come up with demand forecast. The average A/F ratio from historical data turns out to be 0.8. What is the best conclusion that can be drawn from this observation?

The optimal order quantity should be 0.8 times the forecast.

The critical ratio of the product in the past was 0.8.

The coefficient of variation of demand will be 0.8.

There is a bias in the forecasting process: forecasts are on average higher than demand.

There is a bias in the forecasting process: forecasts are on average lower than demand.

None of the above.

2. Which of the following is NOT part of strategy formulation?

Environmental analysis.

Development of strategic alternatives.

Evaluation of alternatives.

Strategic choice.

3. For a health care organization that offers several service categories, it is necessary to conduct service area analyses only in the most important service category.

True or false

Reference no: EM132225494

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