I in the Ratio-To-Moving-Average Procedure, Using the Median or Modified

question 18

Multiple Choice

i. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend. ii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average.
iii. The total of the four typical quarterly indexes should equal 100.0.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Just-in-Time Inventory (JIT)

A supply chain management strategy aimed at reducing inventory costs and waste by receiving goods as they are needed in the production process.

Minimize Inventory

A strategy aimed at reducing the amount of inventory to lower storage costs and reduce the risk of stock obsolescence.

Work-in-Process

Inventory items that are in the production process but are not yet completed products.

Parts

Components or pieces that can be combined or assembled to build or repair something.