1. Simple exponential smoothing lags changes in demand.
2. Which of the following is one of the three contrasting approaches to delivering on-site service?
3. The customer is (or should be) the second most important focal point of all decisions in a service organization.
4. Which of the following is used to describe the degree of error?
5. Exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment.
6. Which of the following considerations is not a factor in deciding which forecasting model a firm should choose?
7. In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting demand for a product experiencing high growth.
8. A characteristic of a well-designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided.
9. Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?
10. Poka-yokes are procedures that block the inevitable mistake from becoming a service defect.
11. Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period?
12. In general, which forecasting time frame compensates most effectively for random variation and short-term changes?
13. Poka-yoke is roughly translated from Japanese as “quality management.”
14. Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.
15. Effective management of services requires a clear focus on understanding operations, so much so that it may even require the exclusion of consideration of marketing or personnel.
16. You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. Originally, the forecasting model used was selected because of its relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model, you compute tracking signals. Which of the following is the resulting tracking signal?
17. In the simple exponential smoothing forecasting model, you need at least 30 observations to set the smoothing constant alpha.
18. The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.
19. Which of the following is not one of the basic types of forecasting?
20. The term “encounter” is defined by Webster’s Dictionary as “meeting in conflict or battle” and is used to also designate meetings between consumers and service systems.
21. In the weighted moving average forecasting model, the weights must add up to one times the number of data points.
22. Which of the following is not a characteristic of a well-designed service system?
23. In general, which forecasting time frame best identifies seasonal effects?
24. In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?
25. Customer contact refers to creation of the service.

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