Anna$$S department uses exponential smoothing to make forecasts. Given the last period$$s demand forecast was for $20,000$ units and last period$$s actual demand was $21,000$ units, what should be the forecast for the current period? $($Anna$$s department uses a smoothing constant $($$)$ equal to $0\mathrm{.}40.)$

$$ A$.21,000$ B$.20,600$ C$.20,400$ D$.20,000$

$$

$17.$ If you were to use a four$-$period simple moving average method to forecast sales, and sales have been increasing by $20\%$ every period.$$ How will your forecasts perform?

$$ A$.$ Forecasts will increase by $5\mathrm{.}0\%$ every period.$$

$$ B$.$ Forecasts will be lower than actual.$$

$$ C$.$ Forecasts will be higher than actual.

$$ D$.$ More than one of the above are correct.

$$

$18.$ Increasing alpha in a simple exponential smoothing forecast model:

$$ A$.$ Increases the accuracy of the model.

$$ B$.$ Increases the responsiveness of the model to variability in the demand pattern.

$$ C$.$ Decreases the responsiveness of the model to variability in the demand pattern.

$$ D$.$ Makes no difference in the responsiveness or accuracy of the model.

$$

$19.$ Assume that you are using an arithmetic average model for forecasting. If your current period$$s forecast equals $100$ units, based on $6$ periods of demand, and your current period$$s actual demand equals $86$ units, then your calculated forecast for next the period will be $98$ units.

$$ A$.$ True$$ B$.$ False

$$

$20.$ Forecasts are unnecessary for most parts used in a manufacturing process.

$$ A$.$ True$$ B$.$ False