MGSC 395 FINAL EXAM (BRANNER)
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Chapter 8: Forecasting - ANS - Understand demand management
- Understand the difference between dependent and independent variables
- Interpret R-squared in the regression output
- Calculations: MAPE and MAD; along with forecasting using trend equation, moving average,
and exponential smoothing
Forecasting - ANS A prediction of future events used for planning purposes.
A statement about the future value of a variable of interest, such as demand.
Example: banks forecast ATM cash demands; stock each ATM with just enough cash to avoid
running out and with as few reloading trips as possible
Demand Patterns - ANS Five basic time series patterns:
1. Horizontal: data cluster about a horizontal line.
2. Trend: data consistently increases or decreases.
3. Seasonal: data consistently shows peaks and valleys.
4. Cyclical: data reveals gradual increases and decreases over extended periods.
5. Random: caused by chance events. If the cause of variation can't be identified, it's assumed
to be purely random chance.
Demand Management - ANS The process of changing demand patterns using one or more
demand options.
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, Complimentary Products: in Spring/Summer the display is "oasis outdoor", but then changes in
Fall/Winter to "peppermint forest"
Causal Forecasting Method - ANS Used when historical data is available and the relationship
can be identified
Linear regression is the best and most used causal method
Linear Regression Forecasts - ANS Dependent variable (y) is predicted for given values of the
independent variable (x)
Linear regression is a special case that assumes the relationship between the variables can be
explained with a straight line
Independent vs. Dependent Variables - ANS Independent: the variable that predicts/explains
the outcome variable of interest
Dependent: variable that researchers want to explain (the dependent variable DEPENDS on the
independent variable)
Sample Coefficient of Determination (R-Squared) - ANS Measures the amount of variation in
the dependent variable about its mean that is explained by the regression line
Values range from 0-1
Written as r^2
Chapter 9: Inventory Management - ANS - Know and understand ABC analysis
- Know and understand the difference between P system and Q system
- Calculations: EOQ, TBO, SD of demand during lead time, safety stock, and reorder point
Independent vs. Dependent Demand - ANS Independent: demand for various items are
unrelated to each other
Dependent: the need for any one item is a direct result of the need for some other item.
Example: Aston Martin is independent, tires/wheels/engines are dependent (caused by demand
for a higher-level item)
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Chapter 8: Forecasting - ANS - Understand demand management
- Understand the difference between dependent and independent variables
- Interpret R-squared in the regression output
- Calculations: MAPE and MAD; along with forecasting using trend equation, moving average,
and exponential smoothing
Forecasting - ANS A prediction of future events used for planning purposes.
A statement about the future value of a variable of interest, such as demand.
Example: banks forecast ATM cash demands; stock each ATM with just enough cash to avoid
running out and with as few reloading trips as possible
Demand Patterns - ANS Five basic time series patterns:
1. Horizontal: data cluster about a horizontal line.
2. Trend: data consistently increases or decreases.
3. Seasonal: data consistently shows peaks and valleys.
4. Cyclical: data reveals gradual increases and decreases over extended periods.
5. Random: caused by chance events. If the cause of variation can't be identified, it's assumed
to be purely random chance.
Demand Management - ANS The process of changing demand patterns using one or more
demand options.
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, Complimentary Products: in Spring/Summer the display is "oasis outdoor", but then changes in
Fall/Winter to "peppermint forest"
Causal Forecasting Method - ANS Used when historical data is available and the relationship
can be identified
Linear regression is the best and most used causal method
Linear Regression Forecasts - ANS Dependent variable (y) is predicted for given values of the
independent variable (x)
Linear regression is a special case that assumes the relationship between the variables can be
explained with a straight line
Independent vs. Dependent Variables - ANS Independent: the variable that predicts/explains
the outcome variable of interest
Dependent: variable that researchers want to explain (the dependent variable DEPENDS on the
independent variable)
Sample Coefficient of Determination (R-Squared) - ANS Measures the amount of variation in
the dependent variable about its mean that is explained by the regression line
Values range from 0-1
Written as r^2
Chapter 9: Inventory Management - ANS - Know and understand ABC analysis
- Know and understand the difference between P system and Q system
- Calculations: EOQ, TBO, SD of demand during lead time, safety stock, and reorder point
Independent vs. Dependent Demand - ANS Independent: demand for various items are
unrelated to each other
Dependent: the need for any one item is a direct result of the need for some other item.
Example: Aston Martin is independent, tires/wheels/engines are dependent (caused by demand
for a higher-level item)
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
