When Using Extrapolation to Forecast

question 22

Multiple Choice

When using extrapolation to forecast,

• A)a time series of past observations is used.
• B)there is a large error term in the results.
• C)predictions can only be made about the future.
• D)dummy variables can skew the results.

Understand the concepts of safety inventory and its impact on fill rate and cycle service level.

Gain knowledge about different types of fill rates and cycle service levels in supply chain management.

Identify the significance of product availability and safety inventory in volatile demand scenarios.

Differentiate between periodic and continuous review policies regarding safety inventory levels.

---

Definitions:

Network Structure

The arrangement and interconnection of nodes in a network, including how data flows and is managed within the network.

Outsourced Processes

Business activities or functions that are contracted out to external providers rather than performed in-house.

Transcription Services

The process of converting speech or audio content into written or textual format.

Lower Costs

The reduction of expenses in the production or procurement of goods or services, often to improve profitability.