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SupplyChainManagementExercise

TrueorFalse

Asupplychainincludesonlytheorganizationsdirectlyinvolvedinsupplyingcomponentsneededformanufacturing.

Answer:False

Difficulty:Moderate

Asupplychainconsistsofallpartiesinvolved,directlyorindirectly,infulfillingacustomerrequest.

Answer:True

Difficulty:Moderate

Asupplychaincouldbemoreaccuratelydescribedasasupplynetworkorsupplyweb.

Answer:True

Difficulty:Moderate

Theobjectiveofeverysupplychainistomaximizetheoverallvaluegenerated.

Answer:True

Difficulty:Easy

Theobjectiveofeverysupplychainistomaximizethevaluegeneratedforthemanufacturingcomponentofthesupplychain.

Answer:False

Difficulty:Moderate

Allsupplychainactivitieswithinafirmbelongtooneofthreemacroprocesses–CRM,ISCMandSRM.

Answer:True

Difficulty:Easy

Thereisacloseconnectionbetweenthedesignandmanagementofsupplychainflowsandthesuccessofasupplychain.

Answer:True

Difficulty:Easy

Acompany’scompetitivestrategydefinesthesetofcustomerneedsthatitseekstosatisfythroughitsproductsandservices.

Answer:True

Difficulty:Easy

Thevaluechainemphasizesthecloserelationshipbetweenallthefunctionalstrategieswithinacompany.

Answer:True

Difficulty:Moderate

Acompany’sproductdevelopmentstrategydefinesthesetofcustomerneedsthatitseekstosatisfythroughitsproductsandservices.

Answer:False

Difficulty:Moderate

Acompany’sproductdevelopmentstrategyspecifiestheportfolioofnewproductsthatitwilltrytodevelop.

Answer:True

Difficulty:Easy

Acompany’ssupplychainstrategyspecifieshowthemarketwillbesegmentedandhowtheproductwillbepositioned,priced,andpromoted.

Answer:False

Difficulty:Easy

Acompany’ssupplychainstrategydeterminesthenatureofprocurementandtransportationofmaterialsaswellasthemanufactureanddistributionoftheproduct.

Answer:True

Difficulty:Easy

Thedegreeofsupplychainresponsivenessshouldbeconsistentwiththeimplieduncertainty.

Answer:True

Difficulty:Easy

Thedegreeofsupplychainresponsivenessdoesnotneedtobeconsistentwiththeimplieduncertainty.

Answer:False

Difficulty:Moderate

Thetwomajortypesoffacilitiesaredistributionsitesandstoragesites.

Answer:False

Difficulty:Moderate

Inventoryisanimportantsupplychaindriverbecausechanginginventorypoliciescandramaticallyalterthesupplychain’sefficiencyandresponsiveness.

Answer:True

Difficulty:Moderate

Informationispotentiallythebiggestdriverofperformanceinthesupplychainasitdirectlyaffectseachoftheotherdrivers.

Answer:True

Difficulty:Easy

Thehighutilizationfacilitywillhavenomoredifficultyrespondingtodemandfluctuationsthanonewithalotofunusedcapacity.

Answer:False

Difficulty:Easy

Stockkeepingunit(SKU)storageisthewarehousingmethodologythatusesatraditionalwarehousetostoreallofonetypeofproducttogether.

Answer:True

Difficulty:Moderate

Warehouseunitstorageisthewarehousingmethodologythatusesatraditionalwarehousetostoreallofonetypeofproducttogether.

Answer:False

Difficulty:Moderate

Distributionoccursbetweeneverypairofstagesinthesupplychain.

Answer:True

Difficulty:Moderate

Distributiononlyoccursbetweenmanufacturingandconsumersinthesupplychain.

Answer:False

Difficulty:Moderate

Companiesinthesameindustryoftenselectverydifferentdistributionnetworks,becausethechoiceofthedistributionnetworkcanbeusedtoachieveavarietyofsupplychainobjectivesrangingfromlowcosttohighresponsiveness.

Answer:True

Difficulty:Moderate

Themainadvantageofadistributionnetworkwithlocalstorageisthatitcanlowerthedeliverycostandprovideafasterresponsethanothernetworks.

Answer:True

Difficulty:Moderate

Whendesigningsupplychainnetworks,companiesmustbuildappropriateflexibilitytohelpcounterfluctuationsinexchangeratesanddemandacrossdifferentcountries.

Answer:True

Difficulty:Moderate

Inventoryandfacilitycostsincreaseasthenumberoffacilitiesinasupplychainincrease.

Answer:True

Difficulty:Moderate

Transportationcostsincreaseasthenumberoffacilitiesisincreased.

Answer:False

Difficulty:Moderate

Whenfacedwithanetworkdesigndecision,thegoalofamanageristodesignanetworkthatminimizesthefirm’scostswhilesatisfyingcustomerneedsintermsofdemandandresponsiveness.

Answer:False

Difficulty:Hard

Thesupplychainnetworkisdesignedtomaximizetotalprofits,takingintoaccounttheexpectedmarginanddemandineachmarket,variouslogisticsandfacilitycosts,andthetaxesandtariffsateachlocation.

Answer:True

Difficulty:Easy

Decisionsmadeduringthesupplychaindesignphaseregardingsignificantinvestmentsinthesupplychain,suchasthenumberandsizeofplantstobuild,thenumberoftruckstopurchaseorlease,andwhethertobuildorleasewarehousespace,cannotbealteredintheshortterm.

Answer:True

Difficulty:Moderate

Decisionsmadeduringthesupplychaindesignphaseregardingsignificantinvestmentsinthesupplychain,suchasthenumberandsizeofplantstobuild,thenumberoftruckstopurchaseorlease,andwhethertobuildorleasewarehousespace,rarelyremaininplaceforseveralyears.

Answer:False

Difficulty:Moderate

Decisionsmadeduringthesupplychaindesignphaseregardingsignificantinvestmentsinthesupplychain,suchasthenumberandsizeofplantstobuild,thenumberoftruckstopurchaseorlease,andwhethertobuildorleasewarehousespace,definetheboundarieswithinwhichthesupplychainmustcompete.

Answer:True

Difficulty:Moderate

Long-termcontractsforbothwarehousingandtransportationrequirementswillbemoreeffectiveifthedemandandpriceofwarehousingdonotchangeinthefutureorifthepriceofwarehousinggoesup.

Answer:True

Difficulty:Easy

Long-termcontractsforbothwarehousingandtransportationrequirementswillbemoreeffectiveifeitherdemandorthepriceofwarehousingdropsinthefuture.

Answer:False

Difficulty:Moderate

Thepresentvalueoffuturecashflowsisfoundbyusingadiscountfactor.

Answer:True

Difficulty:Moderate

Therateofreturnkisalsoreferredtoasthepresentvalueofcapital.

Answer:False

Difficulty:Easy

AnegativeNPVforanoptionindicatesthattheoptionwilllosemoneyforthesupplychain.

Answer:True

Difficulty:Moderate

ThedecisionwiththelowestNPVwillprovideasupplychainwiththehighestfinancialreturn.

Answer:False

Difficulty:Moderate

Inreality,demandandpricesarehighlyuncertainandarelikelytofluctuateduringthelifeofanysupplychaindecision.

Answer:True

Difficulty:Moderate

Thegoalofaggregateplanningistosatisfydemandinawaythatminimizesprofit.

Answer:False

Difficulty:Easy

Aggregateplanningisaprocessbywhichacompanydetermineslevelsofcapacity,production,subcontracting,inventory,stockouts,andevenpricingoveraspecifiedtimehorizon.

Answer:True

Difficulty:Moderate

Aggregateplanningsolvesproblemsinvolvingaggregatedecisionsratherthanstockkeepingunit(SKU)leveldecisions.

Answer:True

Difficulty:Easy

Forecastingerrorsaredealtwithinaggregateplansusingeithersafetybacklogorsafetycapacity.

Answer:False

Difficulty:Moderate

Safetyinventoryisdefinedasinventoryheldtosatisfydemandthatishigherthanforecasted.

Answer:True

Difficulty:Easy

Safetycapacityisdefinedascapacityusedtosatisfydemandthatislowerthanforecasted.

Answer:False

Difficulty:Easy

Companiesshouldworkwithdownstreampartnerstoproduceforecastsandwithupstreampartnerstodetermineconstraintswhendoingaggregateplanning.

Answer:True

Difficulty:Easy

Theaggregateplanshouldbeviewedprimarilyasanin-housetoolthatdoesnotneedtobecommunicatedtosupplychainpartners.

Answer:False

Difficulty:Easy

Giventhatforecastsarealwayswrongtosomedegree,theaggregateplanneedstohavesomeflexibilitybuiltintoitifitistobeuseful.

Answer:True

Difficulty:Moderate

Withsupplyanddemandmanagementdecisionsbeingmadeindependently,itiseasiertocoordinatethesupplychain,therebyincreasingprofit.

Answer:False

Difficulty:Moderate

Afirmcanvarysupplyofproductbycontrollingproductioncapacityandinventory.

Answer:True

Difficulty:Easy

Afirmthatusesflexibleworkhoursfromtheworkforcetomanagecapacitytobettermeetdemandisusingaseasonalworkforce.

Answer:False

Difficulty:Moderate

Offeringapromotionduringapeakperiodthathassignificantforwardbuyingcreatesevenmorevariabledemandthanbeforethepromotion.

Answer:True

Difficulty:Easy

Averageinventorydecreasesifapromotionisrunduringthepeakperiodandincreasesifthepromotionisrunduringtheoff-peakperiod.

Answer:False

Difficulty:Easy

Promotingduringapeakdemandmonthmaydecreaseoverallprofitabilityifasignificantfractionofthedemandincreaseresultsfromaforwardbuy.

Answer:True

Difficulty:Hard

Asforwardbuyingbecomesasmallerfractionofthedemandincreasefromapromotion,itislessprofitabletopromoteduringthepeakperiod.

Answer:False

Difficulty:Hard

Astheproductmargindeclines,promotingduringthepeakdemandperiodbecomeslessprofitable.

Answer:True

Difficulty:Easy

Cycleinventoryexistsbecauseproducingorpurchasinginlargelotsallowsastageofthesupplychaintoexploiteconomiesofscaleandincreasecost.

Answer:False

Difficulty:Moderate

Alotorbatchsizeisthequantitythatastageofthesupplychaineitherproducesorpurchasesatagiventime.

Answer:True

Difficulty:Moderate

Cycleinventoryisthephysicalinventoryinthesupplychainduetoeitherproductionorpurchasesdemandedbythecustomer.

Answer:True

Difficulty:Moderate

Theinventoryprofileisaplotdepictingthelevelofinventoryovertime.

Answer:True

Difficulty:Easy

Adiscountisvolume-basedifthepricingscheduleoffersdiscountsbasedonthequantityorderedinasinglelot.

Answer:False

Difficulty:Hard

Adiscountisvolume-basedifthediscountisbasedonthetotalquantitypurchasedoveragivenperiod,regardlessofthenumberoflotspurchasedoverthatperiod.

Answer:True

Difficulty:Easy

Pricingscheduleswithallunitquantitydiscountsencourageretailerstoincreasethesizeoftheirlots,whichreducestheaverageinventoryandflowtimeinasupplychain.

Answer:False

Difficulty:Moderate

Safetyinventoryisinventorycarriedforthepurposeofsatisfyingdemandthatexceedstheamountforecastedforagivenperiod.

Answer:True

Difficulty:Moderate

Safetyinventoryiscarriedbecausedemandforecastsareaccurateandaproductshortagemayresultiftheforecastdemandexceedstheactualdemand.

Answer:False

Difficulty:Moderate

Raisingthelevelofsafetyinventoryincreasesproductavailabilityandthusthemargincapturedfromcustomerpurchases.

Answer:True

Difficulty:Moderate

Raisingthelevelofsafetyinventoryincreasesinventoryholdingcosts.

Answer:True

Difficulty:Easy

Carryingexcessiveinventorycanhelpcounterdemandvolatilitywhennewproductscomeonthemarket.

Answer:False

Difficulty:Moderate

Theappropriatelevelofsafetyinventoryisdeterminedbytheuncertaintyofbothdemandandsupplyandthedesiredlevelofcycleinventory.

Answer:False

Difficulty:Moderate

Astheuncertaintyofsupplyordemandgrows,therequiredlevelofsafetyinventoriesincreases.

Answer:True

Difficulty:Moderate

Asthedesiredlevelofproductavailabilityincreases,therequiredlevelofsafetyinventorydecreases.

Answer:False

Difficulty:Easy

Leadtimeisthegapbetweenwhenanorderisplacedandwhenitisreceived.

Answer:True

Difficulty:Easy

Periodicreviewpoliciesrequiremoresafetyinventorythancontinuousreviewpoliciesforthesamelevelofproductavailability.

Answer:True

Difficulty:Easy

Whenusingacontinuousreviewpolicy,amanagerhastoaccountfortheuncertaintyofdemandduringtheleadtimeandthereviewinterval.

Answer:False

Difficulty:Easy

MultiplyChoice

Whichofthefollowingisnotastagewithinatypicalsupplychain?

Customers

Retailers

Wholesalers/Distributors

Manufacturers

Alloftheabovearestageswithinatypicalsupplychain.

Answer:e

Difficulty:Easy

Supplychainprofitabilityis

notcorrelatedtothevaluegeneratedbythevariousstagesofthesupplychain.

thetotalprofittobesharedacrossallsupplychainstages.

thedifferencebetweentherevenuegeneratedfromthecustomerandtheoverallcostacrossthesupplychain.

thetotalrevenuegeneratedbythedistributorstageofthesupplychain.

bandconly

Answer:e

Difficulty:Difficult

Successfulsupplychainmanagementrequireswhichofthefollowingdecisionphases?

supplychainstrategy/design

supplychainplanning

supplychainoperation

alloftheabove

aandbonly

Answer:d

Difficulty:Moderate

Theobjectiveofcustomerorderentryisto

getthecorrectorderstocustomersbythepromisedduedateatthelowestpossiblecost.

maintainarecordofproductreceiptandcompletepayment.

maximizetheconversionofcustomerarrivalstocustomerorders.

ensurethatordersarequicklyandaccuratelyenteredandcommunicatedtootheraffectedsupplychainprocesses.

noneoftheabove

Answer:d

Difficulty:Easy

Thepush/pullviewofthesupplychainisusefulwhenconsideringstrategicdecisionsrelatingtosupplychaindesign,because

itcategorizesprocessesbasedonwhethertheyareinitiatedinresponsetoorinanticipationofcustomerorders.

itspecifiestherolesandresponsibilitiesofeachmemberofthesupplychain.

itclearlydefinestheprocessesinvolvedandtheownersofeachprocess.

itfocusesonprocessesthatareexternaltothefirm.

itfocusesonprocessesthatareinternaltothefirm.

Answer:a

Difficulty:Hard

Whichofthefollowingstatementsaboutpullprocessesisaccurate?

Mayalsobereferredtoasspeculativeprocesses.

Executionisinitiatedinanticipationofcustomerorders.

Atthetimeofexecution,demandmustbeforecast.

Mayalsobereferredtoasreactiveprocesses.

Noneoftheaboveareaccurate.

Answer:d

Difficulty:Easy

Whichofthefollowingstatementsaboutpushprocessesisaccurate?

Mayalsobereferredtoasspeculativeprocesses.

Executionisinitiatedinresponsetocustomerorders.

Atthetimeofexecution,demandisknownwithcertainty.

Mayalsobereferredtoasreactiveprocesses.

Noneoftheaboveareaccurate.

Answer:a

Difficulty:Easy

Supplychainmacroprocessesincludewhichofthefollowing?

CustomerRelationshipManagement(CRM)

InternalSupplyChainManagement(ISCM)

SupplierRelationshipManagement(SRM)

alloftheabove

noneoftheabove

Answer:d

Difficulty:Easy

Acompany’scompetitivestrategy

definesthesetofcustomerneedsthatitseekstosatisfythroughitsproductsandservices.

specifiestheportfolioofnewproductsthatitwilltrytodevelop.

specifieshowthemarketwillbesegmentedandhowtheproductwillbepositioned,priced,andpromoted.

determinesthenatureofprocurementandtransportationofmaterialsaswellasmanufactureanddistributionoftheproduct.

determineshowitwillobtainandmaintaintheappropriatesetofskillsandabilitiestomeetcustomerneeds.

Acompany’ssupplychainstrategy

definesthesetofcustomerneedsthatitseekstosatisfythroughitsproductsandservices.

specifiestheportfolioofnewproductsthatitwilltrytodevelop.

specifieshowthemarketwillbesegmentedandhowtheproductwillbepositioned,priced,andpromoted.

determinesthenatureofprocurementandtransportationofmaterialsaswellasmanufactureanddistributionoftheproduct.

determineshowitwillobtainandmaintaintheappropriatesetofskillsandabilitiestomeetcustomerneeds.

Answer:d

Difficulty:Easy

Asupplychainstrategyincludes

supplierstrategy.

operationsstrategy.

logisticsstrategy.

alloftheabove

noneoftheabove

Answer:d

Difficulty:Moderate

Customerdemandfromdifferentsegmentsvariesalongwhichofthefollowingattributes?

Thequantityofproductneededineachlot.

Theresponsetimethatcustomersarewillingtotolerate.

Thevarietyofproductsneeded.

Theservicelevelrequired.

alloftheabove

Answer:e

Difficulty:Easy

Whichofthefollowingisnotanattributealongwhichcustomerdemandvaries?

Theuniquenessoftheproduct.

Thequantityofproductneededineachlot.

Thevarietyofproductsneeded.

Thedesiredrateofinnovationintheproduct.

Alloftheaboveareattributes.

Answer:a

Difficulty:Moderate

Theuncertaintyofcustomerdemandforaproductisthe

rateofstrategicuncertainty.

demanduncertainty.

implieddemanduncertainty.

averageforecasterror.

noneoftheabove

Answer:b

Difficulty:Moderate

Theuncertaintythatexistsduetotheportionofdemandthatthesupplychainisrequiredtomeetisthe

rateofstrategicuncertainty.

demanduncertainty.

implieddemanduncertainty.

averageforecasterror.

noneoftheabove

Answer:c

Difficulty:Moderate

Whichofthefollowingsupplychaincapabilitieswillcausesupplyuncertaintytoincrease?

Frequentbreakdowns

Unpredictableandlowyields

Poorquality

Limitedsupplycapacity

alloftheabove

Answer:e

Difficulty:Easy

Whichofthefollowingisnotamajordriverofsupplychainperformance?

Facilities

Inventory

Transportation

Information

Alloftheabovearemajordriversofsupplychainperformance.

Answer:e

Difficulty:Easy

Whichofthefollowingisnotamajordriverofsupplychainperformance?

Customers

Facilities

Inventory

Transportation

Information

Answer:a

Difficulty:Moderate

Theplacesinthesupplychainnetworkwhereproductisstored,assembled,orfabricatedareknownas

facilities.

inventory.

transportation.

information.

customers.

Answer:a

Difficulty:Easy

Thewarehousingmethodologythatusesatraditionalwarehousetostoreallofonetypeofproducttogetheris

warehouseunitstorage.

stockkeepingunit(SKU)storage.

joblotstorage.

cross-docking.

noneoftheabove

Answer:b

Difficulty:Moderate

Seasonalinventoryshouldbeusedwhen

acompanycanrapidlychangetherateofitsproductionsystemataverylowcost.

changingtherateofproductionisexpensive(e.g.,whenworkersmustbehiredorfired).

adjustingtoaperiodoflowdemandwithoutincurringlargecosts.

theworldisperfectlypredictable.

productionrateisflexible.

Answer:a

Difficulty:Hard

Theprocessbywhichafirmdecideshowmuchtochargecustomersforitsgoodsandservicesis

supplychaincoordination.

forecasting.

aggregateplanning.

revenuemanagement.

pricing.

Answer:e

Difficulty:Easy

Whichofthefollowingaremeasuresofcustomerservicethatareinfluencedbythestructureofthedistributionnetwork?

Returnability

Ordervisibility

Customerexperience

Productavailability

alloftheabove

Answer:e

Difficulty:Moderate

Whichofthefollowingisnotameasureofcustomerservicethatisinfluencedbythestructureofthedistributionnetwork?

Returnability

Customerexperience

Customermaturity

Productavailability

Alloftheabovearemeasuresofcustomerservice.

Answer:c

Difficulty:Easy

Thetimebetweenwhenacustomerplacesanorderandreceivesdeliveryis

responsetime.

productvariety.

productavailability.

customerexperience.

ordervisibility.

Answer:a

Difficulty:Easy

Thenumberofdifferentproducts/configurationsthatacustomerdesiresfromthedistributionnetworkis

responsetime.

productvariety.

productavailability.

customerexperience.

ordervisibility.

Answer:b

Difficulty:Easy

Asthenumberoffacilitiesinasupplychainincreases,totalfacilitycosts

decrease.

remainthesame.

increase.

increasetoapointandthendecrease.

decreasetoapointandthenincrease.

Answer:c

Difficulty:Moderate

Totallogisticscostsforasupplychainnetworkareasumof

inventoryandfacilitycosts.

inventory,facility,anddistributorcosts.

facility,transportation,anddistributorcosts.

inventory,transportation,andfacilitycosts.

noneoftheabove

Answer:d

Difficulty:Moderate

Asthenumberoffacilitiesinasupplychainnetworkincreases,totallogisticscostswill

decrease.

decreaseatfirstandthenincrease.

increase.

increaseatfirstandthendecrease.

neitherincreaseordecrease.

Answer:b

Difficulty:Moderate

Whichofthefollowingarekeydecisionsinthedesignofadistributionnetwork?

Willproductbedeliveredtothecustomerlocationorpickedupfromapre-ordainedsite?

Willproductflowthroughaproductionfacility?

Willproductflowthroughanintermediary(orintermediatelocation)?

alloftheabove

aandconly

Answer:e

Difficulty:Moderate

Supplychainnetworkdesigndecisionsinclude

onlythelocationofmanufacturing,storage,ortransportation-relatedfacilities.

onlytheallocationofcapacityandrolestoeachfacility.

boththelocationofmanufacturing,storage,ortransportation-relatedfacilitiesandtheallocationofcapacityandrolestoeachfacility.

neitherthelocationofmanufacturing,storage,ortransportation-relatedfacilitiesnortheallocationofcapacityandrolestoeachfacility.

noneoftheabove

Answer:c

Difficulty:Easy

Supplychainnetworkdesigndecisionsclassifiedasfacilityroleareconcernedwith

whatprocessesareperformedateachfacility.

wherefacilitiesshouldbelocated.

howmuchcapacityshouldbeallocatedtoeachfacility.

whatmarketseachfacilityshouldserveandwhichsupplysourcesshouldfeedeachfacility.

noneoftheabove

Answer:a

Difficulty:Moderate

Supplychainnetworkdesigndecisionsclassifiedasfacilitylocationareconcernedwith

whatprocessesareperformedateachfacility.

wherefacilitiesshouldbelocated.

howmuchcapacityshouldbeallocatedtoeachfacility.

whatmarketseachfacilityshouldserveandwhichsupplysourcesshouldfeedeachfacility.

noneoftheabove

Answer:b

Difficulty:Easy

Developingcountriesoftencreatefreetradezoneswhere

dutiesandtariffsareimposedaslongasproductionisusedprimarilyforexport.

dutiesandtariffsareimposedaslongasproductionisusedprimarilyforimport.

dutiesandtariffsarerelaxedaslongasproductionisusedprimarilyforexport.

dutiesandtariffsarerelaxedaslongasproductionisusedprimarilyforimport.

dutiesandtariffsareincreasedaslongasproductionisusedprimarilyforexport.

Answer:c

Difficulty:Easy

Buildingsomeover-capacityinthesupplychainnetworkandmakingthecapacityflexibleallowsafirmtoalterproductionflowswithinthesupplychainto

producelessinfacilitiesthathavealowercostbasedoncurrentexchangerates.

producemoreinfacilitiesthathavealowercostbasedoncurrentexchangerates.

producemoreinfacilitiesthathaveahighercostbasedoncurrentexchangerates.

producelessinfacilitiesthathavethesamecostbasedoncurrentexchangerates.

Noneoftheaboveareaccurate.

Answer:b

Difficulty:Moderate

Positiveexternalitiesareinstanceswhere

thecollocationofmultiplefirmsbenefitsallofthem.

thedispersionofmultiplefirmsbenefitsallofthem.

thecooperationofmultiplefirmsbenefitsallofthem.

thecoordinationofmultiplefirmsbenefitsallofthem.

thedisagreementofmultiplefirmsbenefitsallofthem.

Answer:a

Difficulty:Moderate

Thebasisforallstrategicandplanningdecisionsinasupplychaincomesfrom

theforecastofdemand.

salestargets.

profitabilityprojections.

productionefficiencygoals.

alloftheabove

Answer:a

Difficulty:Easy

Forpushprocesses,amanagermustforecastwhatcustomerdemandwillbeinorderto

plantheservicelevel.

planthelevelofavailablecapacityandinventory.

planthelevelofproductivity.

planthelevelofproduction.

noneoftheabove

Answer:d

Difficulty:Moderate

Forpullprocesses,amanagermustforecastwhatcustomerdemandwillbeinorderto

plantheservicelevel.

planthelevelofavailablecapacityandinventory.

planthelevelofproductivity.

planthelevelofproduction.

noneoftheabove

Answer:b

Difficulty:Moderate

Ingeneral,thefurtherupthesupplychainacompanyis(orthefurthertheyarefromtheconsumer),

thegreaterthedistortionofinformationtheyreceive.

thesmallerthedistortionofinformationtheyreceive.

theinformationtheyreceiveismoreaccurate.

theinformationtheyreceiveismoreuseful.

noneoftheabove

Answer:a

Difficulty:Moderate

Whichofthefollowingisnotaforecastingmethod?

qualitative

timeseries

causal

simulation

Alloftheaboveareforecastingmethods.

Answer:e

Difficulty:Moderate

Predictablevariabilityis

changeindemandthatcanbeforecasted.

changeindemandthatcannotbeforecasted.

changeindemandthathasbeenplanned.

changeindemandthathasbeenscheduled.

alloftheabove

Answer:a

Difficulty:Easy

Whichofthefollowingisnotaproblemcausedbyproductsexperiencingpredictablevariabilityofdemand?

highlevelsofstockoutsduringpeakdemand

highlevelsofexcessinventoryduringperiodsoflowdemand

increasedresponsivenessofthesupplychain

increasedcostsinthesupplychain

decreasedresponsivenessofthesupplychain

Answer:c

Difficulty:Easy

Afirmcanhandlepredictablevariabilitybymanaging

supplyusingcapacity,inventory,tradepromotions,andbacklogs.

supplyusingcapacity,inventory,subcontracting,andbacklogs.

demandusingshort-termpricediscountsandtradepromotions.

aandconly

bandconly

Answer:e

Difficulty:Easy

Seasonaldemandcanbemetby

maintainingenoughmanufacturingcapacitytomeetdemandinanyperiod.

buildingupinventoryduringtheoffseasontomeetdemandduringpeakseasons.

offeringapricepromotionduringperiodsoflowdemandtoshiftsomeofthedemandintoaslowperiod.

alloftheabove

aandbonly

Answer:d

Difficulty:Moderate

Theadvantageofmaintainingenoughmanufacturingcapacitytomeetdemandinanyperiodis

verylowinventorycostsbecauseinventoryneedstobecarriedfromperiodtoperiod.

verylowinventorycostsbecausenoinventoryneedstobecarriedfromperiodtoperiod.

veryhighinventorycostsbecausenoinventoryneedstobecarriedfromperiodtoperiod.

veryhighinventorycostsbecauseexpensivecapacitywouldgounusedduringmostmonthswhendemandwaslower.

noneoftheabove

Answer:b

Difficulty:Moderate

Thedisadvantageofmaintainingenoughmanufacturingcapacitytomeetdemandinanyperiodis

muchoftheexpensivecapacitywouldgounusedduringmostmonthswhendemandwaslower.

theexpensivecapacitywouldbeusedconsistentlythroughouttheyear.

mostoftheexpensivecapacitywouldstillbeusedduringmostmonthswhendemandwaslower.

verylowinventorycostsbecausenoinventoryneedstobecarriedfromperiodtoperiod.

Noneoftheabovearetrue.

Answer:a

Difficulty:Moderate

Afirmcanvarysupplyofproductbycontrolling

productioncapacityandinventory.

productioncapacityandpricepromotions.

pr

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