Deck 3: Demand

Question 1

Demand for many products changes periodically, often due to a predictable influence. These influences include ________ factors that affect products.

A)Seasonal
B)Operational
C)Co-operational
D)Annual

Answer 1

Seasonal

Question 2

Apart from seasonal factors, ______ factors can also cause large declines in sales.

A)Operational
B)Non-seasonal
C)Semi-annual
D)Co-operational

Answer 2

Non-seasonal

Question 3

____________ is a change in demand that can be forecasted. Products that that undergo this type of change in demand cause numerous problems in a supply chain.

A)Variable occurrence
B)Lead time
C)Predictable variability
D)None of the above.

Answer 3

Predictable variability

Question 4

When faced with predictable variability, a company's goal is to respond in a manner that maximizes profitability. A firm must choose how to handle this by managing the supply using capacity, inventory, subcontracting, and backlogs and managing the demand using __________________.

A)Short-term price and trade promotions
B)Long-term discounts and effective marketing
C)Short-term discounts and long-term sales promotions
D)None of the above.

Question 5

Consider Green Gardening Tools. Demand for garden tools is seasonal, with sales concentrated in the spring. Green Gardening needs to plan how it will meet the demand to maximize profit. One way to meet demand requires Green Gardening to carry enough manufacturing capacity to meet demand in any period.
The advantage of this approach is ________________.

A)That Green Gardening incurs very low inventory.
B)That Green Gardening incurs maximum profits.
C)That Green Gardening incurs high inventory.
D)That Green Gardening incurs maximum supply in a season.

Question 6

Let's suppose that Green Gardening Tools applies another approach to meet demand in which it builds up inventory during the off-season to keep production stable year round. What would be the advantage and the disadvantage of this approach?

A)Smaller inventory; higher profits.
B)Smaller, less expensive factory; fewer promotions.
C)Smaller less expensive factory; higher inventory carrying costs.
D)Larger profits, smaller labor force.

Question 7

What best describes the term market growth?

A)Increase in product value.
B)Increase in market share.
C)Increase in product variety.
D)Increase in consumption of product from new or existing customers.

Question 8

Which of the following is considered a factor that influences the timing of a trade promotion?

A)Impact of the promotion of demand.
B)Product margins.
C)Cost of holding inventory and cost of changing capacity.
D)All of the above.

Question 9

Toyota offers a Corolla promotion. Buyers who might have purchased a Honda Civic may now purchase a Corolla. This example best describes:

A)Stealing share.
B)Effective marketing strategy.
C)Advertisement.
D)Product perfection.

Question 10

________is the process in which customers move up future purchases to the present.

A)Forward pushing
B)Forward buying
C)Forward selling
D)Accelerated promotions

Question 11

The source for all strategic and planning decisions in a supply chain is called: _______.

A)Forecasting of demand
B)Forecasting of supply
C)Forecasting of Errors
D)Logistics Predictions

Question 12

According to the APICS dictionary, the forecast which projects a company's sales is called:

A)An economic forecast.
B)A technological forecast.
C)A demand forecast.
D)An associative model.

Question 13

What should both companies and their supply chains be aware of about demand forecasting?

A)That forecasts show the mirror image of what will happen in the future.
B)That forecasts can be wrong.
C)That forecasts diminish human efficiency.
D)They should not be aware of demand forecasting.

Question 14

________ forecasts are usually less accurate than short-term forecasts.

A)Long-term
B)Causal
C)Qualitative
D)Quantitative

Question 15

Forecasting methods are classified into which of the following types?

A)Qualitative, discreet, variable, and continuous.
B)Time series and prime degree.
C)Psychological and societal.
D)Qualitative, time series, causal, and simulation.

Question 16

Time series forecasting methods use _______ to make a forecast.

A)Historical demand data
B)Future demand data
C)Present demand data
D)Present demand data on a average basis

Question 17

Causal forecasting methods find the correlation between_______ and ________.

A)Demand; environment.
B)Supply; production.
C)CRM; SRM.
D)None of the above.

Question 18

A firm can combine time series and causal forecasting method to answer impact of a price. This can only be possible using what method?

A)Best-fit forecasting.
B)Rolling forecasting.
C)Simulation forecasting.
D)Econometric forecasting.

Question 19

Observed demand (O) = ____________________+______________________.

A)Aggregated; random.
B)Systematic; random.
C)Aggregated; constant.
D)Constant; systematic.

Question 20

A forecast error can be best defined as:

A)The error that measures the random component of demand.
B)The error that measures discreet components of production.
C)The error that measures a variable quantity of supply.
D)None of the above.

Question 21

_______ and ______ are used to estimate the size of a forecast error.

A)Mean Absolute Deviation; Mean Absolute Percentage Error
B)Weighted Absolute Percentage Error; Real Aggregated Percentage Error
C)Relative Measure of Accuracy; Mean Absolute Percentage Error
D)Mean Absolute Deviation; Real Aggregated Percentage Error

Question 22

The connection between demand, service supply, and running of assets is not straightforward, because demand involves _________and _________ can be very complex.

A)Humans and human behavior
B)Products and consumer behavior
C)Markets and supplier behavior
D)All of the above.

Question 23

Focusing on service supply alone is __________, because demand will always outstrip supply.

A)Not sustainable in the long run.
B)Not sustainable in the short run.
C)Profitable in the short run.
D)Profitable in the long run.

Question 24

Demand management activities in several global supply chains consist of which of the following activities?

A)Demand management.
B)Demand planning.
C)Sales forecasting management.
D)All of the above.

Question 25

A demand-driven supply chain includes transforming the traditional supply chain into an __________________.

A)Integrated multi-tier supply network
B)Integrated single supply network
C)Integrated network circuit
D)All of the above.

Question 26

A key characteristic of a demand-driven supply chain is that the product movements are driven by _____________.

A)Potential demand
B)Actual demand
C)Consumption
D)All of the above.

Question 27

Another type of supply chain demand is called ____________because it is not the independent demand of the end-use customer.

A)Single demand
B)Derived demand
C)Rush demand
D)All of the above.

Question 28

__________is the demand for the component parts that go into a product.

A)Independent demand
B)Dependent demand
C)Both.
D)None of the above.

Question 29

Demand management emphasizes demand for the profitable ones, and _________by lessening marketing efforts for the unprofitable ones.

A)Increases demand
B)Decreases demand
C)Sustains demand
D)None of the above.

Question 30

Demand Management is likely to become a key element of reform in the ______________and management process.

A)Resource planning
B)Strategy planning
C)Source investigation
D)All of the above.

Question 31

An aspect of demand management is ______________.

A)CRM
B)SRM
C)SCM
D)ISCM

Question 32

A demand-driven approach attains balanced cash flow through_________________.

A)Increased sales
B)Reduced operating expenses
C)Working capital improvements
D)All of the above.

Question 33

There are no discrete _____________________ for Demand Management.

A)Overall reporting requirements
B)Annual financial reports
C)Semi-annual marketing reports
D)Quarter fiscal policies

Question 34

Monitoring of and feedback for Demand Management is an evolving process requiring ongoing review in order to achieve the most ______________ service delivery and best use and distribution of resources.

A)Equitable
B)Cost-effective
C)Efficient
D)All of the above.

Question 35

Demand Management contains a number of key steps within the three characteristic phases of any strategic management process. Which of the following is not one of them?

A)Preparation
B)Analysis and Planning
C)Implementation.
D)Feedback and Response

Question 36

The impact of Demand Management strategies on the client's expenditure must be considered. The effect will vary with the_______ of the consumer and the ________of their use of services.

A)Wealth and density
B)Margin and call
C)Demand and supply
D)None of the above.

Question 37

The benefits of Demand Management are deferred capital and recurrent expenditures by reducing __________.

A)Trade Blocs
B)Excessive consumption
C)Quantity supplied by quantity demanded
D)All of the above.

Question 38

____________ trade on the assumption of awareness of the costs.

A)Education strategies
B)Labor strategies
C)Costs strategies
D)None of the above.