Deck 7: Demand Management

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

Integrated fulfillment is preferred to dedicated fulfillment.

Question 8

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

Question 9

Demand management includes

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

Question 10

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 11

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

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

Question 12

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

Question 13

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

Question 14

Dependent demand is directly influenced by independent demand.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

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

Question 19

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

Question 20

The essence of demand management is to manage customer demand so that overstocks are reduced and margin can be maintained.

Question 21

Pick two of the following and discuss the technique with its advantages and disadvantages.

Question 22

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 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) demand that cannot normally be anticipated
D) failure to properly execute the SO&P process plan

Question 24

The internal balancing method deals with

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

Question 25

A process that can be used to arrive at this consensus forecast is called the Sales and Operations Planning process.Discuss this process including the five steps used to implement this process.

Question 26

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 27

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 28

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 29

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

Question 30

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 31

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

Question 32

Discuss how seasonality affects forecasts with examples.

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

Two types of demand exist.What are they,and discuss how they influence the supply chain?

Question 35

Define and discuss channels of distribution.Is this the same as marketing or logistics channel?

Question 36

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

Question 37

Oversupply is created by

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