Deck 15: Demand Management and Customer Service

Question 1

4)Demand management activities have an impact on a company's ______.

A)functional areas
B)corporate strategy
C)compliance requirements
D)potential for ISO Certification

Answer 1

A

Question 2

18)The deviation of actual demand from the forecast is called ______.

A)overforecasting error
B)underforecasting error
C)forecasting error
D)none of these

Answer 2

C

Question 3

17)The time horizon for ______ is 3 months or less.

A)intermediate-term demand planning decisions
B)long-term demand planning decisions
C)short-term demand planning decisions
D)prolonged demand planning decisions

Answer 3

C

Question 4

19)Which of the following statements is true about demand forecasts?

A)Demand forecasts are always accurate in predicting the actual demand that will occur in the future period.
B)Demand forecasts are rarely accurate in predicting the actual demand that will occur in the future period.
C)Demand forecasts are estimates of long-term demand for a firm's products.
D)Demand forecasts do not account for the randomness in the actual demand.

Question 5

2)Mismatches between actual demand and forecasted demand will result in ______.

A)excess inventory
B)expanded market share
C)employee dissatisfaction
D)an increase in transportation costs

Question 6

16)An objective of intermediate-term demand planning decisions is ______.

A)establishment of profit and revenue targets
B)inventory planning and control
C)transportation for inbound and outbound
D)supply chain design

Question 7

20)Increase in ice cream consumption during the summer months is an example of ______.

A)predictable variations
B)random variations
C)irregular variations
D)abnormal variations

Question 8

12)Which of the following statements is false about demand planning?

A)Operational costs are reduced.
B)Opportunities for introducing new products and services are identified.
C)Superior customer service is provided.
D)A clear picture of market dynamics is difficult to obtain.

Question 9

1)The process of accurately determining what the customer wants and then coordinating the processes and procedures within the firm and across its supply chain to meet customer needs is called ______.

A)demand forecasting
B)demand management
C)demand planning
D)demand creation

Question 10

11)______ is the process of accurately forecasting the company's demand well into the future to give the company and its supply partners a basis for the planning needed to meet demand.

A)Demand forecasting
B)Demand management
C)Demand planning
D)Demand control

Question 11

7)Which of the following statements is false about demand management?

A)Effective demand planning and management can mitigate the bullwhip effect.
B)Accurate forecasts of product quantities can facilitate implementation of just-in-time production systems.
C)Efficient demand planning and forecasts can reduce the operational costs.
D)Accurate demand planning can result in excess inventories and unwanted capacity.

Question 12

3)Effective demand management is most important for a company's ______.

A)operations
B)employee morale
C)employee motivation
D)compliance requirements

Question 13

14)Operational decisions,including inventory planning and control,and inbound/outbound transportation,are the focus of ______.

A)intermediate-term demand planning decisions
B)long-term demand planning decisions
C)short-term demand planning decisions
D)prolonged demand planning decisions

Question 14

6)Inaccurate demand planning or poor demand management can lead to ______.

A)an increase in employment levels
B)idle/unwanted capacity
C)reduction in employee absenteeism rate
D)poor employee morale

Question 15

5)Which one of the following statements is true about demand management activities?

A)Demand management influences new product introductions and product portfolio planning.
B)Demand management has high impact on compliance requirements.
C)Demand management can reduce potential for ISO certification.
D)Poor demand management increases the need for product quality.

Question 16

13)The time horizon for making intermediate-term demand planning decisions is ______.

A)3 months to 6 months
B)3 months to 3 years
C)10 years
D)3 months or less

Question 17

15)______ require the firm to project its aggregate demand from the present to several years in the future.

A)Intermediate-term demand planning decisions
B)Long-term demand planning decisions
C)Short-term demand planning decisions
D)Immediate demand planning decisions

Question 18

8)Which of the following statements is applicable to demand management activities in finance?

A)influences capital investments
B)impacts new product introductions
C)influences supply chain design
D)determines employee head count and overtime for current workers

Question 19

9)______ is the process of estimating the demand for a firm's products in the near future.

A)Demand forecasting
B)Demand management
C)Demand planning
D)Demand assessment

Question 20

10)The first step in demand management is ______.

A)demand planning
B)demand assessment
C)demand forecasting
D)none of these

Question 21

25)CPFR in forecasting stands for ______.

A)combined planning forecasting and replenishment
B)collaborative planning forecasting and replenishment
C)continuous planning forecasting and replenishment
D)customer planning forecasting and replenishment

Question 22

29)The two tasks in demand and supply management phase are ______.

A)demand forecasting and production planning
B)sales forecasting and order planning
C)sales forecasting and production planning
D)revenue forecasting and production planning

Question 23

23)______ is the process of gathering information from within and outside of the organization to forecast demand for a product.

A)Collaborative forecasting
B)Causal forecasting
C)Collaborative planning
D)Causal planning

Question 24

26)Which of the following is NOT one of the phases of the CPFR process?

A)analysis
B)strategy and planning
C)execution
D)control

Question 25

24)Which of the following is NOT a factor for collaborative forecasting?

A)new product introductions
B)insight and judgment of the company's supply chain partners
C)historical demand
D)customers' buying power

Question 26

34)Which of the following statements is true about accelerating the forecasting process?

A)Forecasts will be more accurate when the randomness of the actual demand is not considered.
B)Forecasts will be more accurate when the forecasters can access current changes in demand quicker.
C)Forecasts can be accelerated when processes used to collect demand data are manual.
D)Forecasts will be more accurate when the forecasters take more time to access current changes in demand.

Question 27

28)During which phase of the CPFR do the buyers and sellers establish common business goals and define the responses to events that cause supply chain disruptions?

A)analysis
B)strategy and planning
C)execution
D)demand and supply management

Question 28

21)Forecasters view demand as a combination of ______.

A)direct and indirect variations
B)seasonal and cyclic variations
C)predictable and random variations
D)regular and irregular variations

Question 29

40)Drawbacks of the postponement strategy include ______.

A)higher costs associated with customizing products and the need to have universal parts in inventory
B)applicable to all business scenarios
C)reduced inventory
D)prompt customer service

Question 30

22)Which of the following is NOT an approach to reduce the inaccuracy of forecasts?

A)Collaborative forecasting between the company,its customers,and suppliers.
B)Acceleration of the forecasting process to reduce errors.
C)Analyzing the buying capacity of customers.
D)Focusing on the forecasting methods that will include all relevant factors.

Question 31

35)Which of the following is NOT one of the ways to proactively manage demand?

A)prices changes
B)sales incentives
C)promotions
D)sales force opinion

Question 32

30)During which phase of the CPFR are goods produced,stocked,shipped,and delivered to meet demand?

A)analysis
B)strategy and planning
C)execution
D)demand and supply management

Question 33

32)______ involves the development and calculation of key metrics to evaluate the progress of the organization.

A)Exception management
B)Strategy management
C)Performance assessment
D)Performance control

Question 34

37)Which of the following statements is true about global demand management?

A)Local suppliers provide the buying firms greater flexibility in responding to demand fluctuations.
B)Global suppliers provide the buying firms greater flexibility in responding to demand fluctuations.
C)There is no difference between local suppliers and global suppliers in responding to demand fluctuations.
D)none of these

Question 35

27)There are ______ major collaborative activities in the CPFR process that buyers and sellers in a supply chain need to undertake to satisfy the needs of the customers.

A)four
B)five
C)three
D)six

Question 36

38)Which of the following is false about global demand management?

A)Local suppliers have shorter lead times.
B)Its primary challenge is ensuring that inventories are readily available.
C)Global suppliers have shorter lead times.
D)Global demand volatility affects a company's upstream suppliers.

Question 37

39)Which of the following is true about companies that have implemented postponement strategies?

A)increased inventory
B)increased number of outdated products
C)increased range of customized products
D)increased supply demand mismatches

Question 38

33)______ is the continuous monitoring of shortages or sudden changes in the quality of materials.

A)Exception management
B)Performance assessment
C)Strategy management
D)Performance control

Question 39

36)Which of the following statements is false about global demand volatility?

A)When a company cancels its order during periods of demand downturn,the suppliers are left with inventories for which demand no longer exists.
B)When the company increases its order during periods of demand upswings,it takes a long time to get the goods through the supply chain due to longer lead times.
C)When demand for a product softens,companies can easily cancel orders with distant suppliers as compared to local suppliers.
D)When demand for a product increases,companies can place new orders with local suppliers with more assurance that it will be delivered on time.

Question 40

31)The tasks during the ______ phase of the CPFR include exception management and performance assessment.

A)analysis
B)strategy and planning
C)execution
D)demand and supply management

Question 41

56)Which of the following is a customer service measure of time?

A)order fulfillment
B)customer complaints
C)on-time deliveries
D)response times to emergency situations

Question 42

53)Which of the following statements is FALSE about the communication aspect of customer service?

A)Personal and face-to-face communication remain essential to good customer service.
B)Communication is the channel to obtain critical customer feedback on the company's performance.
C)Personal and face-to-face communication are no longer essential to good customer service.
D)Live chat,social media sites,and e-mail are effective means of communication.

Question 43

54)On-time deliveries and perfect/complete orders are measuring the ______ dimension of customer services.

A)time
B)reliability
C)convenience
D)communication

Question 44

46)_______ in customer service refers to making the product or service available when and where the customer wants it.

A)Comfort
B)Delivery
C)Convenience
D)Time

Question 45

41)A restaurant with overscheduled staff on a slow night is an example of ______.

A)insufficient capacity in the form of busy resources and poor service quality
B)excess capacity in the form of idle resources
C)excellent service quality
D)service recovery

Question 46

45)______ is the percentage of customer orders that can be fully and completely filled from items in stock.

A)Order fill rate
B)In-stock probability
C)Out-of-stock probability
D)Order delivery completion

Question 47

50)CPA in customer service management stands for ______.

A)customer profitability analysis
B)company profitability analysis
C)collective profitability analysis
D)convenient profitability analysis

Question 48

48)Managing customer service consists of ______ features.

A)five
B)three
C)two
D)four

Question 49

59)Which of the following is NOT an example of service failure?

A)late deliveries
B)damaged or lost products
C)incorrect orders
D)promotions

Question 50

44)______ is the ability of a company to fully deliver all the orders placed by the customers.

A)Order fill rate
B)Delivery safety
C)Order delivery completeness
D)In-stock probability

Question 51

58)Which of the following statements is true about service failures?

A)Service failures occur when an organization's service performance fails to meet the customer's expectations.
B)Service failures will not occur when organizations take the best efforts to prevent them.
C)Service failures occur due to hardware breakdown.
D)Service failures will not recover quickly if the customer has a close relationship with the company.

Question 52

42)The four supply chain dimensions of customer service include ______.

A)reliability,communication,time,and convenience
B)time,comfort,convenience,and effort
C)reliability,affordability,time,and delivery
D)time,service,effort,and delivery

Question 53

43)______ is the ability of a company to deliver products to customers without loss or damage.

A)Order fill rate
B)Delivery safety
C)Order delivery completion
D)In-stock probability

Question 54

55)Which of the following is a customer service measure of convenience?

A)order fulfillment
B)ease of return process
C)response times to enquiries
D)customer complaints

Question 55

47)Systems that allow customers to purchase products and have them delivered in different ways are called ______.

A)multichannel business systems
B)multichannel marketing systems
C)single channel marketing systems
D)multichannel buying systems

Question 56

51)______ is a process of allocating revenue and costs to customer segments or individual customers in order to determine their profitability.

A)Company profitability analysis
B)Customer profitability analysis
C)Collective profitability analysis
D)Convenient profitability analysis

Question 57

60)______ is an effort by the organization to appease dissatisfied customers by offering credits,discounts,apologies,or free items/services.

A)Service recovery
B)Customer satisfaction
C)Order delivery
D)Customer service

Question 58

49)Which of the following is NOT a feature of managing customer services?

A)customer profitability analysis
B)service failure and recovery
C)customer service measurement
D)stock on hand

Question 59

52)Which of the following statements is FALSE about establishing customer service objectives?

A)Make them realistic.
B)Make them measurable.
C)Make them ambitious.
D)Keep them aligned to a company's top-level goals.

Question 60

57)Customer complaints and order status information are measuring the ______ dimension of customer services.

A)time
B)reliability
C)convenience
D)communication

Question 61

66)______ is based on the idea that long-run profitability and efficiency of an enterprise depends on the customers' overall satisfaction with the company's and its supply chain partners' products or services.

A)Collaboration-focused supply chain management
B)Communication-focused supply chain management
C)Customer-focused supply chain management
D)Company-focused supply chain management

Question 62

70)Which of the following statements is FALSE about sustainability in customer service?

A)Companies will reap the benefits of improved profit and customer loyalty if they can convince their customers that it is on a path of sustainable development.
B)Companies will lose its customers if they are unable to convince their customers that they are ethically and socially responsible.
C)Companies can receive bad publicity because of their unsustainable behavior.
D)Companies can easily persuade people to buy products even if they are not ethically and socially responsible.

Question 63

80)Globalization and expansion of product lines have resulted in ______.

A)increased randomness and volatility of demand for products
B)predictable demand for products
C)stabilized revenue for companies
D)improved customer satisfaction

Question 64

64)Customer dissatisfaction resulting from service failure could lead to ______.

A)positive publicity
B)gaining trust of customers
C)negative publicity
D)increased employee commitment

Question 65

63)Which of the following is FALSE about service recovery?

A)Gather information from customers at the time of service failure so that necessary action can be taken for immediate recovery.
B)Conduct a postrecovery assessment to evaluate the recovery performance against the customer.
C)Service recovery is unaffected by the strength of the relationship between the customer and the organization.
D)Success of service recovery depends on the severity of the failure.

Question 66

67)Which of the following is NOT a step in implementing an effective CFSCM program?

A)Establish two-way communication between customers and suppliers.
B)Understand customers' strategic service needs.
C)Establish functional interfaces between the company and its supply chain partners.
D)Improve customer satisfaction through sales discounts.

Question 67

65)CFSCM stands for ______.

A)collaboration-focused supply chain management
B)customer-focused supply chain management
C)communication-focused supply chain management
D)company-focused supply chain management

Question 68

79)Historical data used to predict the average or trend of actual demand is based on which of the following assumptions?

A)Past demand is not a reliable predictor of its future.
B)Past demand is a reliable predictor of its future.
C)Past demand is directly proportional to its future.
D)Past demand is independent of its future.

Question 69

73)Stocking snow shovels and snow blowers at stores in response to a snowstorm forecast is an example of ______

A)matching total demand against capacity
B)matching sales with revenue
C)satisfying customer needs
D)increasing customer loyalty

Question 70

78)Minor changes in demand that are caused by unknown factors and cannot be foreseen are called ______.

A)cyclic variations
B)random variations
C)predictable variations
D)seasonal variations

Question 71

72)______ aim to guarantee that the firm can fulfill customer orders and has adequate stocks of inventory.

A)Intermediate-term demand planning decisions
B)Long-term demand planning decisions
C)Short-term demand planning decisions
D)Immediate-demand planning decisions

Question 72

74)Demand influences new product introductions and product portfolio planning.This statement is applicable to which functional area?

A)supply chain
B)finance
C)marketing
D)human resources

Question 73

75)Which of the following is an impact of demand management activities on human resources?

A)Demand influences capital investments.
B)Demand impacts new product introductions.
C)Demand influences supply chain design.
D)Demand determines employee head count and overtime for current workers.

Question 74

69)Which of the following statements is FALSE about quality customer service?

A)Customers demand that businesses act in an ethically and socially responsible manner.
B)Customers are not very knowledgeable about environmental issues such as carbon emissions.
C)The social responsible behavior of businesses has an influence on the customers' purchasing decisions.
D)Companies can no longer hide their unsustainable,unethical business practices.

Question 75

77)Variations that follow a pattern are called ______.

A)cyclic variations
B)random variations
C)predictable variations
D)irregular variations

Question 76

68)Which of the following statements is FALSE about CFSCM program?

A)Actual demand information captured at point-of-sale is communicated through supply chain using information technology.
B)Key customer service performance factors can be achieved faster with the collaboration of supply chain partners.
C)The customers are linked to the lower-level members of the supply chain only.
D)All supply chain activities are synchronized.

Question 77

62)Consider a situation in which an airline cancels its flight,leaving the customers stranded.This is an example of ______.

A)service excellence
B)service recovery
C)service failure
D)service delivery

Question 78

76)The time horizon for long-term demand planning decisions is ______

A)3 months to 6 months
B)3 months to 3 years
C)several years
D)3 months or less

Question 79

71)Which of the following is NOT an integral part of customer service?

A)Exhibit sustainable behavior.
B)Create a perception in the minds of the customers that the organization acts in an ethically,socially,and environmentally responsible manner.
C)Demonstrate a commitment to customer service that is increasingly valued.
D)Potential customers do not expect organizations to be ethical and socially responsible.

Question 80

61)Which of the following are NOT used in service recovery to please customers?

A)discounts
B)refunds
C)credits
D)late deliveries