Question 1

Determining how profits will be allocated to different members of the supply chain is a key to successful collaboration.

Accepted Answer

A) True 
 B)False

Question 2

Faced with predictable variability of demand,a company's goal is to respond in a manner that maximizes profitability.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the importance of collaboration within a supply chain when performing aggregate planning.

Accepted Answer

Supply chains can influence demand by us

Question 4

A firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the impact of promotion on demand within a supply chain.

Accepted Answer

Companies want to explore if and when to

Question 6

In general,as the fraction of increased demand coming from forward buying grows,offering the promotion during the peak demand period becomes

Accepted Answer

A) less attractive. 
B) more attractive. 
C) more profitable. 
D) less significant. 
A) less attractive. 
B) more attractive. 
C) more profitable. 
D) less significant.

Question 7

Promoting during a peak demand month may decrease overall profitability if

Accepted Answer

A) a small fraction of the demand increase results from a forward buy. 
B) any of the demand increase results from a forward buy. 
C) a significant fraction of the demand increase results from a forward buy. 
D) none of the above 
A) a small fraction of the demand increase results from a forward buy. 
B) any of the demand increase results from a forward buy. 
C) a significant fraction of the demand increase results from a forward buy. 
D) none of the above

Question 8

With supply and demand management decisions being made independently,

Accepted Answer

A) it is increasingly difficult to coordinate the supply chain,thereby increasing profit. 
B) it is increasingly difficult to coordinate the supply chain,thereby decreasing profit. 
C) it is easier to coordinate the supply chain,thereby decreasing profit. 
D) it is easier to coordinate the supply chain,thereby increasing profit. 
A) it is increasingly difficult to coordinate the supply chain,thereby increasing profit. 
B) it is increasingly difficult to coordinate the supply chain,thereby decreasing profit. 
C) it is easier to coordinate the supply chain,thereby decreasing profit. 
D) it is easier to coordinate the supply chain,thereby increasing profit.

Question 9

Promoting during a peak demand month may decrease overall profitability if a significant fraction of the demand increase results from a forward buy.

Accepted Answer

A) True 
 B)False

Question 10

Pricing decisions based only on revenue considerations often result in

Accepted Answer

A) a decrease in overall profitability. 
B) an increase in overall profitability. 
C) a decrease in overall revenue. 
D) a decrease in supply chain revenue. 
A) a decrease in overall profitability. 
B) an increase in overall profitability. 
C) a decrease in overall revenue. 
D) a decrease in supply chain revenue.

Question 11

A firm can vary supply of product by controlling

Accepted Answer

A) revenue. 
B) pricing. 
C) demand. 
D) capacity. 
A) revenue. 
B) pricing. 
C) demand. 
D) capacity.

Question 12

The Okra Colada
An okra farm anticipates highly seasonal demand for their product,tender pods of okra that can be made into the new drink sensation,the okra colada.Their estimate of the demand profile appears below.This forecast is based on the demand profile of last year's drink,the tuna colada.Once everyone in the test market had actually sampled the drink,demand fell to zero.
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Demand Forecast } \
\hline \text { January } & 1,200 \
\hline \text { February } & 2,400 \
\hline \text { March } & 3,600 \
\hline \text { April } & 4,800 \
\hline \text { May } & 2,200 \
\hline \text { June } & 200 \
\hline
\end{array}$$ The costs for the managerial levers appear in this table.
 $\begin{array}{|l|c|}
\hline \text { Item } & \text { Cost } \
\hline\text { Materials cost/unit } & \$ 10 \
\hline \text { Inventory holding cost/unit/month } & \$ 2 \
\hline \text { Marginal cost of stockout/unit/month } & \$ 5 \
\hline \text { Hiring and training cost/worker } & \$ 300 \
\hline \text { Layoff cost/worker } & \$ 500 \
\hline \text { Labor hours required/unit } & 4 \
\hline \text { Regular time cost/hour } & \$ 4 \
\hline \text { Over time cost/hour } & \$ 6 \
\hline \text { Beginning inventory equals } & 1000 \
\hline \text { Ending inventory greater than } & 500 \
\hline \text { Marginal subcontracting cost/unit } & \$ 30\
\hline
\end{array}$ The base price per okra colada is $40 per unit and there is no promotion,but management is seriously considering different promotional plans.The beginning workforce level is 80 workers.
-Use the Okra Colada scenario to answer this question.What constraints are associated with the level of inventory at the end of each period when using linear programming to solve this sales and operations planning problem?

Accepted Answer

A) EIJAN-MAY = 0 
B) EIJUNE ≥ 500,EIJAN-MAY = 0 
C) EIJAN-MAY ≥ 0 
D) EIJUNE ≥ 500,EIJAN-MAY ≤0 
A) EIJAN-MAY = 0 
B) EIJUNE ≥ 500,EIJAN-MAY = 0 
C) EIJAN-MAY ≥ 0 
D) EIJUNE ≥ 500,EIJAN-MAY ≤0

Question 13

A firm can vary supply of product by controlling

Accepted Answer

A) production capacity and inventory. 
B) production capacity and price promotions. 
C) price promotions and inventory. 
D) production capacity and inventory promotions. 
A) production capacity and inventory. 
B) production capacity and price promotions. 
C) price promotions and inventory. 
D) production capacity and inventory promotions.

Question 14

The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight.

Accepted Answer

A) True 
 B)False

Question 15

The advantage of maintaining enough manufacturing capacity to meet demand in any period is

Accepted Answer

A) very low inventory costs because inventory needs to be carried from period to period. 
B) very low inventory costs because no inventory needs to be carried from period to period. 
C) very high inventory costs because no inventory needs to be carried from period to period. 
D) very high inventory costs because expensive capacity would go unused during most months when demand was lower. 
A) very low inventory costs because inventory needs to be carried from period to period. 
B) very low inventory costs because no inventory needs to be carried from period to period. 
C) very high inventory costs because no inventory needs to be carried from period to period. 
D) very high inventory costs because expensive capacity would go unused during most months when demand was lower.

Question 16

The capacity management approach that uses a temporary workforce during the peak season to increase capacity to match demand is

Accepted Answer

A) time flexibility from workforce. 
B) the use of seasonal workforce. 
C) the use of subcontracting. 
D) the use of dual facilities-dedicated and flexible. 
A) time flexibility from workforce. 
B) the use of seasonal workforce. 
C) the use of subcontracting. 
D) the use of dual facilities-dedicated and flexible.

Question 17

Which approach to capacity management would use a part-time workforce to increase capacity flexibility by enabling the firm to have more people at work during peak periods?

Accepted Answer

A) Time flexibility from workforce 
B) Use of seasonal workforce 
C) Use of subcontracting 
D) Use of dual facilities-dedicated and flexible 
A) Time flexibility from workforce 
B) Use of seasonal workforce 
C) Use of subcontracting 
D) Use of dual facilities-dedicated and flexible

Question 18

Average inventory

Accepted Answer

A) increases if a promotion is run during the peak period. 
B) increases if a promotion is run during the off-peak period. 
C) decreases if a promotion is run during the peak period. 
D) decreases if a promotion is run during the off-peak period. 
A) increases if a promotion is run during the peak period. 
B) increases if a promotion is run during the off-peak period. 
C) decreases if a promotion is run during the peak period. 
D) decreases if a promotion is run during the off-peak period.

Question 19

Predictable variability is

Accepted Answer

A) change in demand that can be forecasted. 
B) change in demand that cannot be forecasted. 
C) change in demand that has been planned. 
D) change in demand that has been scheduled. 
A) change in demand that can be forecasted. 
B) change in demand that cannot be forecasted. 
C) change in demand that has been planned. 
D) change in demand that has been scheduled.

Question 20

As forward buying becomes a smaller fraction of the demand increase from a promotion,it is less profitable to promote during the peak period.

Accepted Answer

A) True 
 B)False

Determining how profits will be allocated to different members of the supply chain is a key to successful collaboration.

Faced with predictable variability of demand,a company's goal is to respond in a manner that maximizes profitability.

Discuss the importance of collaboration within a supply chain when performing aggregate planning.

A firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce.

Discuss the impact of promotion on demand within a supply chain.

In general,as the fraction of increased demand coming from forward buying grows,offering the promotion during the peak demand period becomes

Promoting during a peak demand month may decrease overall profitability if

With supply and demand management decisions being made independently,

Promoting during a peak demand month may decrease overall profitability if a significant fraction of the demand increase results from a forward buy.

Pricing decisions based only on revenue considerations often result in

A firm can vary supply of product by controlling

A firm can vary supply of product by controlling

The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight.

The advantage of maintaining enough manufacturing capacity to meet demand in any period is

The capacity management approach that uses a temporary workforce during the peak season to increase capacity to match demand is

Which approach to capacity management would use a part-time workforce to increase capacity flexibility by enabling the firm to have more people at work during peak periods?

Average inventory

Predictable variability is

As forward buying becomes a smaller fraction of the demand increase from a promotion,it is less profitable to promote during the peak period.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 9: Sales and Operations Planning: Planning Supply and Demand

Determining how profits will be allocated to different members of the supply chain is a key to successful collaboration.

Faced with predictable variability of demand,a company's goal is to respond in a manner that maximizes profitability.

Discuss the importance of collaboration within a supply chain when performing aggregate planning.

A firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce.

Discuss the impact of promotion on demand within a supply chain.

In general,as the fraction of increased demand coming from forward buying grows,offering the promotion during the peak demand period becomes

Promoting during a peak demand month may decrease overall profitability if

With supply and demand management decisions being made independently,

Promoting during a peak demand month may decrease overall profitability if a significant fraction of the demand increase results from a forward buy.

Pricing decisions based only on revenue considerations often result in

A firm can vary supply of product by controlling

A firm can vary supply of product by controlling

The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight.

The advantage of maintaining enough manufacturing capacity to meet demand in any period is

The capacity management approach that uses a temporary workforce during the peak season to increase capacity to match demand is

Which approach to capacity management would use a part-time workforce to increase capacity flexibility by enabling the firm to have more people at work during peak periods?

Average inventory

Predictable variability is

As forward buying becomes a smaller fraction of the demand increase from a promotion,it is less profitable to promote during the peak period.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters