What is he major flaw in moving average forecasting method

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1. This relates to a make vs. 'buy decision within Supply Chain considerations (i.e., does a business produce a component in-house or do they buy it). Are the following items examples of reasons a business would make a component or buy it?

To lower production cost

To assure adequate supply

To utilize surplus labor or facilities

To obtain desired quality

To remove supplier collusion

A. These are reasons to make the component in house

B. These are reasons to purchase or outsource the component.

2. Changes in information systems is a form of infrastructure change in the supply chain?

A. True

B. False

3. Which of the following are true about the bullwhip effect?

a. with perfect information available at all levels, the bullwhip effect can be eliminated.

b. Long replenishment lead times can cause distortions in orders.

C. When demand varies at the retail level, the demand changes more drastically at the wholesale and supplier levels.

D. Decisions in each part of the supply chain affect the other parts.

4. According tot he article "cracking the bullwhip effect" which of the following is NOT one of the contribution factors to the bullwhip effect

A. false orders

B. transportation incentives which cause demand lumps

C. Faulty products received from the manufacturer

D. Sales incentive plans that end up creating demand distortions

5. What is he major flaw in the moving average forecasting method?

A. It can only be used for long range forecasting

B. There is no way to compute the forecasting error

C. There is limited historical data available

D. It assumes no trend, seasonal, or cyclical components

Reference no: EM131369245

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