Question 1

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

Accepted Answer

A)  Errors in inventory management 
B)  Errors not caught by using exponential smoothing 
C)  A development that cannot normally be anticipated 
D)  Failure to properly execute the SO&P process plan 
A)  Errors in inventory management 
B)  Errors not caught by using exponential smoothing 
C)  A development that cannot normally be anticipated 
D)  Failure to properly execute the SO&P process plan

Question 2

The internal balancing method deals with:

Accepted Answer

A)  price and lead time. 
B)  inventory and production flexibility. 
C)  functional silos. 
D)  channel selection. 
A)  price and lead time. 
B)  inventory and production flexibility. 
C)  functional silos. 
D)  channel selection.

Question 3

Exponential smoothing:

Accepted Answer

A)  is one of the most commonly used techniques. 
B)  uses primarily weighted averages to compensate for errors. 
C)  is used to determine random variations. 
D)  is used to reduce channel fluctuations. 
A)  is one of the most commonly used techniques. 
B)  uses primarily weighted averages to compensate for errors. 
C)  is used to determine random variations. 
D)  is used to reduce channel fluctuations.

Question 4

Which of the following does a forecast always assume?

Accepted Answer

A)  Base demand always moves in a positive direction 
B)  Business cycles do not exist 
C)  The past always repeats itself 
D)  Every forecast is seasonal 
A)  Base demand always moves in a positive direction 
B)  Business cycles do not exist 
C)  The past always repeats itself 
D)  Every forecast is seasonal

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The essence of demand management is to estimate and manage _____ and use this information to make operating decisions.

Accepted Answer

A)  channel orders 
B)  vendors and suppliers 
C)  customer demand 
D)  SO&P processes 
A)  channel orders 
B)  vendors and suppliers 
C)  customer demand 
D)  SO&P processes

Question 7

The weighted moving average method assigns:

Accepted Answer

A)  a value in each period being averaged. 
B)  a weight greater than 1. 
C)  information based on a simple average. 
D)  a weight to each previous period. 
A)  a value in each period being averaged. 
B)  a weight greater than 1. 
C)  information based on a simple average. 
D)  a weight to each previous period.

Question 8

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Demand management includes:

Accepted Answer

A)  flows of products. 
B)  flows of services. 
C)  flows of capital. 
D)  all of these answers. 
A)  flows of products. 
B)  flows of services. 
C)  flows of capital. 
D)  all of these answers.

Question 11

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Mean Absolute Deviation (MAD) is a good metric of forecast accuracy because it shows whether a forecast is above or below actual demand.

Accepted Answer

A) True 
 B)False

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

The internal balancing method deals with:

Exponential smoothing:

Which of the following does a forecast always assume?

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

The essence of demand management is to estimate and manage _____ and use this information to make operating decisions.

The weighted moving average method assigns:

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.

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

Demand management includes:

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.

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

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

Mean Absolute Deviation (MAD) is a good metric of forecast accuracy because it shows whether a forecast is above or below actual demand.

Supply Chain Management: an Overview

Global Dimensions of Supply Chains

Role of Logistics in Supply Chains

Distribution and Omni Channel Network Design

Sourcing Materials and Services

Operations Producing Goods and Services

Order Management and Customer Service

Managing Inventory in the Supply Chain

Distribution

Transportation

Aligning Supply Chains

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology

Strategic Challenges and Change for Supply Chains

Filters

Exam 7: Demand Management

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

The internal balancing method deals with:

Exponential smoothing:

Which of the following does a forecast always assume?

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

The essence of demand management is to estimate and manage _____ and use this information to make operating decisions.

The weighted moving average method assigns:

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.

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

Demand management includes:

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.

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

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

Mean Absolute Deviation (MAD) is a good metric of forecast accuracy because it shows whether a forecast is above or below actual demand.

Supply Chain Management: an Overview

Global Dimensions of Supply Chains

Role of Logistics in Supply Chains

Distribution and Omni Channel Network Design

Sourcing Materials and Services

Operations Producing Goods and Services

Order Management and Customer Service

Managing Inventory in the Supply Chain

Distribution

Transportation

Aligning Supply Chains

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology

Strategic Challenges and Change for Supply Chains

Filters