Exam 7: Demand Management

Phantom demand is created by over-ordering during peak demand.

External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.

Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are

A process that organizations can use to arrive at a consensus forecast is called Sales and Operations Planning. Discuss the five steps used to implement this process.

An outbound-to-customer logistics system is also referred to as

An inbound-to-operations logistics system is also referred to as

While there are four types of forecast error measures that can be used, none are foolproof.

A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute.

The term functional silos refers to:

A weighted moving average assigns higher weights to more recent periods.

One type of demand fluctuation is caused by random variation. What is random variation?

Define channels of distribution and discuss their roles in fulfillment.

Outbound-to-customer logistics systems are also referred to as physical distribution.

Integrated fulfillment is preferred to dedicated fulfillment.

Exponential smoothing can use constants higher than 1, but not more than 5.

A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.

The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks.