Deck 7: Demand Management

Question 1

Dependent demand is directly influenced by independent demand.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

Demand management might be defined as focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions.

Question 6

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

Question 7

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

A) physical distribution.
B) physical supply.
C) dedicated fulfillment.
D) demand management.

Question 8

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.

Question 9

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

A) integrated fulfillment.
B) dedicated fulfillment.
C) store fulfillment.
D) physical distribution.

Question 10

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

Question 11

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

Question 12

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

Question 13

Materials management and physical supply are terms that cannot be used interchangeably.

Question 14

An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs.

Question 15

Forecasting has become extremely accurate, especially since the development of the S&OP process.

Question 16

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

Question 17

Demand management includes

A) Flows of products.
B) Flows of services.
C) Flows of capital.
D) All of the these answers

Question 18

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

Question 19

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

Question 20

Integrated fulfillment is preferred to dedicated fulfillment.

Question 21

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.

Question 22

Discuss how seasonality affects forecasts and give examples.

Question 23

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

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 24

Define channels of distribution and discuss their roles in fulfillment.

Question 25

Exponential smoothing

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 26

The weighted moving average method assigns

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 27

There are two types of demand. What are they, and how do they influence the supply chain?

Question 28

The term functional silos refers to:

A) product storage for physical supply.
B) the non communication between customers and vendors.
C) a technique to secure corporate marketing strategies.
D) lack of coordination between departments.

Question 29

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

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

Question 30

There are at least three forecasting methods. Name them and choose one to discuss in more detail, including advantages and disadvantages.

Question 31

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) quick response (QR)
B) vendor-managed inventory (VMI)
C) efficient consumer response (ECR)
D) all of these answers

Question 32

There are four types of forecast error measures that can be used. Name them, and choose one to discuss.

Question 33

Four types of forecast error measures can be used. Which one of the following is not one of the four types?

A) cumulative sum of forecast errors
B) exponential smoothing for trends
C) mean squared error
D) mean absolute deviation

Question 34

Pick two of the following direct-to-customer (DTC) fulfillment channel structures and discuss their characteristics, advantages and disadvantages.

Question 35

The internal balancing method deals with
A) functional silos.

A) price and lead time.
B) inventory and production flexibility.
B) channel selection.

Question 36

Oversupply is created by

A) phantom demand.
B) returns and cancellations.
C) forecasting failures.
D) poor channel selection.

Question 37

Define and discuss Collaborative Planning, Forecasting, and Replenishment (CPFR) and its impact on supply chain management.