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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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