A Tracking Signal Was Calculated for a Particular Set of Demand

question 74

Multiple Choice

A tracking signal was calculated for a particular set of demand forecasts.This tracking signal was positive.This would indicate that

• A)demand is greater than the forecast.
• B)demand is less than the forecast.
• C)demand is equal to the forecast.
• D)the MAD is negative.

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Definitions:

Theory of Constraints

A management philosophy focusing on identifying and managing the most limiting factor (constraint) that stands in the way of achieving a goal.

Bottlenecks

Points of congestion in a production system where the workload arrives too quickly for the production process to handle, often leading to delays and lower efficiency.

Strategy

A plan of action designed to achieve a long-term or overall aim.

Total Cost Concept

An accounting approach that includes all costs - direct and indirect - associated with producing a good or service.