A Forecast Based on the Previous Forecast Plus a Percentage

question 130

Multiple Choice

A forecast based on the previous forecast plus a percentage of the forecast error is:

• A)a naive forecast.
• B)a simple moving average forecast.
• C)a centered moving average forecast.
• D)an exponentially smoothed forecast.
• E)an associative forecast.

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Definitions:

Material Handling

The logistics of moving, protecting, warehousing, managing, and disposing of materials and products from the start of production, through the distribution process, to consumption and eventual elimination.

Investment Costs

Expenses associated with the acquisition of new assets, facilities, or equipment intended to increase the capacity, efficiency, or capabilities of a business.

Pilferage

A small amount of theft.

Holding Costs

Expenses related to keeping inventory in storage, including warehousing, insurance, and spoilage costs, which are part of the overall inventory carrying costs.