If a Firm Produced a Product That Was Experiencing Growth

question 15

Multiple Choice

If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following?

• A) Close to zero
• B) A very low percentage, less than 10 percent
• C) The more rapid the growth, the higher the percentage
• D) The more rapid the growth, the lower the percentage
• E) 50 percent or more

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Definitions:

External Environment

Factors outside of an organization’s control that can affect its performance and strategy, including economic, regulatory, and competitive forces.

Resource Inputs

The essential materials, labor, and energy required for the production process in an organization, contributing to its output and operational success.

Goal Accomplishment

Goal accomplishment refers to the successful achievement of objectives set by individuals, teams, or organizations, often through effective planning and execution.

Performance Efficiency

A measure of resource cost associated with goal accomplishment.