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1. The bottleneck in a process is the step with the:
a. fastest cycle time.
b. slowest cycle time.
c. greatest variation in cycle time.
d. most consistent cycle time.
e. None of the above.
2. A technique that utilizes past demand data to predict future demand by examining cyclical, trend, and seasonal influences is referred to as:
a. time series analysis.
b. qualitative analysis.
c. causal analysis.
d. executive analysis.
e. sales force analysis.
3. The local coffee shop uses a naïve approach to forecast the demand for lattés. If the latté demand for Sunday morning was 250 and Monday morning was 274, then using the naïve approach the forecast for lattés on Tuesday morning would be:
a. 250 lattés.
b. 262 lattés.
c. 274 lattés.
d. 524 lattés.
e. Cannot determine with the data provided.
4. The difference between the forecast and the actual demand for a given period is referred to as the:
a. bias error.
b. random error.
c. forecast error.
d. seasonal error.
e. autocorrelation error.
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