Deck 21: Demand Management and Logistics

Question 1

The definition of Supply Chain Management (SCM)depends on one's perspective.

Answer 1

True

Question 2

Supply management provides the critical skills required to manage the interrelationships on which successful supply chains are built.

Answer 2

True

Question 3

Since supply professionals are responsible for developing and managing the interrelationships between supply chain members,supply management is the critical function responsible for managing the supply chain.

Answer 3

True

Question 4

Demand management seeks to estimate,control,smooth,coordinate,balance and influence the demand and supply for a firm's products and services in an effort to reduce total costs for the firm and its supply chain.

Question 5

Which of the following is not a definition of SCM?

A) SCM is an integrating philosophy to manage the total flow of a distribution channel from supplier to the ultimate customer.
B) SCM encompasses integrative management of the sequential flow of logistical, conversion and service activities from vendors to ultimate consumers necessary to produce a product of service efficiently and effectively.
C) SCM is a strategic concept that involves the understanding and managing of the sequence of activities - from supplier to customer - that add value to the product supply chain.
D) Supply chain management is the mathematical optimization of the supply chain system using formulas derived from operations research theory.
E) Supply chain management is the collaborative effort of multiple channel members to design, implement, and manage seamless value-added processes to meet the real needs of the end customer.

Question 6

Unfortunately,many companies define logistics as synonymous with the term SCM,thus ignoring the contributions and roles of supply management and demand management.

Question 7

Logistics professionals play an important role in the success of supply chain management in the management of transportation,storage,and warehousing activities.

Question 8

Logistics can be defined as synonymous with the term SCM.

Question 9

Operations management is the part of the supply chain process that plans,implements,and controls the efficient,effective flow and storage of goods,services,and related information from point of origin to point of consumption with the purpose of conforming to customer requirements.

Question 10

Logistics management seeks to estimate,control,smooth,coordinate,balance and influence the demand and supply for a firm's products and services in an effort to reduce total costs for the firm and its supply chain.

Question 11

Competition in the supply chain is firm versus firm,not chain versus chain (or network versus network.)

Question 12

Failure to accurately estimate demand and share information among supply chain entities can result in bloated inventory levels due to a cumulative effect of poor information cascading up through a supply chain.This effect is infamously known as the "Bullwhip."

Question 13

The issue of how to harness the power of SCM is creating debate in upper management boardrooms and academic classrooms across the world.

Question 14

Since logistics professionals are responsible for developing and managing the interrelationships between supply chain members,logistics management is the critical function responsible for managing the supply chain.

Question 15

Logistics is the part of the supply chain process that plans,implements,and controls the efficient,effective flow and storage of goods,services,and related information from point of origin to point of consumption with the purpose of conforming to customer requirements.

Question 16

Competition in the supply chain is not just firm versus firm,but chain versus chain (or network versus network.)

Question 17

Failure to accurately estimate demand and share information among supply chain entities can result in bloated inventory levels due to a cumulative effect of poor information cascading up through a supply chain.This effect is infamously known as the "Earthquake Effect."

Question 18

In terms of SCM,a forecast is an estimate of future demand.

Question 19

Marketing professionals play the key role in the success of supply chain management in the management of transportation,storage,and warehousing activities.

Question 20

While many functional areas lay claim to the emerging field of SCM,operations management has the strongest claim.

Question 21

Which of the following is not a demand management characteristic given in the textbook?

A) Recognizes forecasts are developed at several points throughout an organization
B) Accepts forecasts from other functions and updates them based on actual, real-time demand
C) Works only with the demand side to adjust the outflow of materials and products
D) Controls through execution of effective production plans, calculation of inventory levels, setting of capacity levels and developing customer service strategies
E) Smoothes production after master production schedules have already been released to internal production and external suppliers

Question 22

Which of the following is not a typical logistics manager activity?

A) Traffic and Transportation
B) Warehousing and Storage
C) Industrial Packaging
D) Materials Handling
E) Information Technology Management

Question 23

Which of the following is not a demand management characteristic given in the textbook?

A) Recognizes forecasts are developed at a centralized point in the organization
B) Smoothes production after master production schedules have already been released to internal production and external suppliers
C) Is a process (versus a bounded business function) that requires the utmost in coordination and communication between the responsible parties
D) Has contingency plans developed with supply chain members to allow modification of short-term schedules when necessary
E) Balances the total costs of not meeting demand against the total costs of adding additional resources required to meet demand

Question 24

Which of the following is not a frequently overheard comment about demand forecasts,as presented in the textbook?

A) "Forecasts are always inaccurate - why try to improve them?"
B) "Someone must be to blame for an inaccurate forecast!"
C) "If only we had a good computerized forecasting software module."
D) "You must believe the numbers since they are objective!"
E) "Using statistical forecasting tools takes too much time."

Question 25

Network management focus often requires:

A) Complex legal contracts
B) Full Alliances
C) Outsourcing of non-strategic functions
D) A supplier focus
E) A logistics focus

Question 26

Demand Management means:

A) Better forecasting
B) More JIT use
C) ERP systems
D) Close collaboration and information sharing between buyer and seller
E) All of the above

Question 27

Which of the following is not a demand management characteristic given in the textbook?

A) Balances the total costs of not meeting demand against the total costs of adding additional resources required to meet demand
B) Demand management does not require the inclusion of external supply chain members
C) World class demand management in a world class supply management context requires open lines of communication both internally and externally
D) Internally, functional areas must share information to enable improved accuracy of estimates of future demands
E) The demands generated through open internal communication must then be shared with external entities

Question 28

Which of the following is not a typical logistics manager activity?

A) Activity Based Costing
B) Site Location Analysis
C) Return Goods Handling
D) Parts and Service Support
E) Salvage and Scrap Disposal

Question 29

Which of the following is not a software driven demand/inventory management approach or system discussed in chapter 21?

A) Material Requirements Planning (MRP)
B) Distribution Requirements Planning (DRP)
C) Material Resources Planning (MRP II)
D) Distribution Resources Planning (DRP II)
E) Enterprise Resource Planning (ERP)