MQM 227 EXAM QUESTIONS AND
ANSWERS 100 PERCENT CORRECT STUDY
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ 2. Which of the following statements is incorrect?
a. The purpose of forecast accuracy is to determine when the forecasting
method is no longer tracking actual demand and should be reset.
b. Forecasting is only used to predict future events.
c. Through planning, we consciously attempt to alter future events.
d. Whenever demand is not constrained by capacity, inventory, or other
management policies; the forecasting of demand should be the same as
the forecasting of sales.
e. The purpose of forecast accuracy is to monitor predictable demand
observations or outliers (which should be carefully evaluated and
perhaps excluded from data analysis). Answer: The purpose of forecast
accuracy is to monitor predictable demand observations or outliers.
◉ 3. Which of the following statements is incorrect?
a. Batch and job shop processes generally have even lower utilization.
b. Assembly-line processes may set planned utilization at 80% to allow
for flexibility to meet unexpected demand.
c. In considering economies of scale, larger facilities are generally more
economical because fixed costs can be spread over more units of
production.
,d. A product-focused facility produces one family or type of product or
service.
e. In considering economies of scale, larger facilities are generally more
economical because the cost of buildings and equipment increases
linearly with volume. Answer: In considering economies of scale, larger
facilities are generally more economical because fixed costs can be
spread over more units of production.
◉ 4. Which of the following options is not listed as a method of adding
capacity to bottlenecks?
a. adding machine time (e.g., coverage during breaks)
b. reducing setup time
c. subcontracting
d. using different equipment if equally efficient Answer: using different
equipment if equally efficient
◉ 5. Which of the following statements is incorrect?
a. A project is a permanent endeavor undertaken to create a unique
product or service.
b. Large objects such as ships, buildings, and custom-made equipment
are manufactured on a project basis.
c. A project completion date and intermediate milestones are frequently
established at the outset.
d. The budget might impact the schedule if the company has a tight
budget and is unwilling to pay additional money to expedite critical
components of the project. Answer: A project is a permanent endeavor
undertaken to create a unique product or service.
, ◉ 6. Which of the following statements is incorrect?
a. Human resource planning is greatly affected by aggregate planning
because planning for future production can result in hiring, layoffs,
training, and overtime decisions.
b. Demand management entails modifying or influencing demand by
differential pricing which is often used to reduce peak demand or to
build up demand in off-peak periods.
c. Demand management entails modifying or influencing demand by
using advertising and promotion to stimulate and/or smooth out demand.
d. Demand management entails modifying or influencing demand by
using backlogs (customers waiting for late orders).
e. An aggregate plan should be the basis for final budget development
and for budget revisions as conditions warrant. Answer: An aggregate
plan should be the basis for final budget development and for budget
revisions as conditions warrant.
◉ 7. Which of the following statements is incorrect?
a. In the Delphi method, a forecast is developed by a panel of experts
answering a series of questions on successive rounds.
b. Exponential smoothing is well adapted to small number of items to be
forecast.
c. In a Life-Cycles Analogy method, predictions are based on the life
cycles of similar products.
d. In the Box-Jenkins method, autocorrelation methods are used to
identify underlying time series.
ANSWERS 100 PERCENT CORRECT STUDY
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ 2. Which of the following statements is incorrect?
a. The purpose of forecast accuracy is to determine when the forecasting
method is no longer tracking actual demand and should be reset.
b. Forecasting is only used to predict future events.
c. Through planning, we consciously attempt to alter future events.
d. Whenever demand is not constrained by capacity, inventory, or other
management policies; the forecasting of demand should be the same as
the forecasting of sales.
e. The purpose of forecast accuracy is to monitor predictable demand
observations or outliers (which should be carefully evaluated and
perhaps excluded from data analysis). Answer: The purpose of forecast
accuracy is to monitor predictable demand observations or outliers.
◉ 3. Which of the following statements is incorrect?
a. Batch and job shop processes generally have even lower utilization.
b. Assembly-line processes may set planned utilization at 80% to allow
for flexibility to meet unexpected demand.
c. In considering economies of scale, larger facilities are generally more
economical because fixed costs can be spread over more units of
production.
,d. A product-focused facility produces one family or type of product or
service.
e. In considering economies of scale, larger facilities are generally more
economical because the cost of buildings and equipment increases
linearly with volume. Answer: In considering economies of scale, larger
facilities are generally more economical because fixed costs can be
spread over more units of production.
◉ 4. Which of the following options is not listed as a method of adding
capacity to bottlenecks?
a. adding machine time (e.g., coverage during breaks)
b. reducing setup time
c. subcontracting
d. using different equipment if equally efficient Answer: using different
equipment if equally efficient
◉ 5. Which of the following statements is incorrect?
a. A project is a permanent endeavor undertaken to create a unique
product or service.
b. Large objects such as ships, buildings, and custom-made equipment
are manufactured on a project basis.
c. A project completion date and intermediate milestones are frequently
established at the outset.
d. The budget might impact the schedule if the company has a tight
budget and is unwilling to pay additional money to expedite critical
components of the project. Answer: A project is a permanent endeavor
undertaken to create a unique product or service.
, ◉ 6. Which of the following statements is incorrect?
a. Human resource planning is greatly affected by aggregate planning
because planning for future production can result in hiring, layoffs,
training, and overtime decisions.
b. Demand management entails modifying or influencing demand by
differential pricing which is often used to reduce peak demand or to
build up demand in off-peak periods.
c. Demand management entails modifying or influencing demand by
using advertising and promotion to stimulate and/or smooth out demand.
d. Demand management entails modifying or influencing demand by
using backlogs (customers waiting for late orders).
e. An aggregate plan should be the basis for final budget development
and for budget revisions as conditions warrant. Answer: An aggregate
plan should be the basis for final budget development and for budget
revisions as conditions warrant.
◉ 7. Which of the following statements is incorrect?
a. In the Delphi method, a forecast is developed by a panel of experts
answering a series of questions on successive rounds.
b. Exponential smoothing is well adapted to small number of items to be
forecast.
c. In a Life-Cycles Analogy method, predictions are based on the life
cycles of similar products.
d. In the Box-Jenkins method, autocorrelation methods are used to
identify underlying time series.
