Question 1

A firm that uses flexible work hours from the workforce to manage capacity to better meet demand is using a seasonal workforce.

Accepted Answer

The firm is using a flexible workforce, not a seasonal workforce. A seasonal workforce is typically hired temporarily to meet increased demand during certain times of the year.

Question 2

A firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce.

Accepted Answer

A seasonal workforce is used during specific times of the year to meet the demands of the market. A temporary workforce is used during peak periods to increase capacity and productivity. Therefore, a firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce.

Question 3

The advantage of carrying enough manufacturing capacity to meet demand in any period is very low inventory costs,because no inventory needs to be carried from period to period.

Accepted Answer

If a company has enough manufacturing capacity to meet demand in any period, they will only produce what is needed and therefore won't have excess inventory to carry over from period to period, resulting in lower inventory costs.

Question 4

The disadvantage of building up inventory during the off season to keep production stable year round is the expensive capacity that would go unused during most months when demand was lower.

Accepted Answer

The answer of The disadvantage of building up inventory during...

Question 5

Maximizing revenue is typically the objective when marketing and sales make the promotion and pricing decisions.

Accepted Answer

Maximizing revenue is a common goal for marketing and sales teams, as they seek to generate as much income as possible through their promotional and pricing strategies.

Question 6

The advantage of building up inventory during the off season to keep production stable year round lies in the fact that a firm could get by with a smaller,more expensive factory.

Accepted Answer

Building up inventory during the off-season to keep production stable year-round allows a firm to maintain a consistent production rate, which can justify a larger, less expensive factory rather than a smaller, more expensive one.

Question 7

Predictable variability is change in demand that cannot be forecasted.

Accepted Answer

Predictable variability refers to change in demand that can be forecasted, while unpredictable variability cannot be forecasted.

Question 8

An approach where a firm works with their retail partners in the supply chain to offer a price promotion during periods of low demand would shift some of the demand into a slow period,thereby spreading demand more evenly throughout the year and reducing the seasonal surge.

Accepted Answer

By offering price promotions during periods of low demand, the firm can encourage customers to purchase during a slow period, which can help even out demand throughout the year and reduce the seasonal surge. Working with retail partners can help spread the promotion more widely and effectively.

Question 9

A firm can vary supply of product by controlling production capacity and inventory.

Accepted Answer

A firm can vary the supply of a product by adjusting its production capacity and managing its inventory levels. By increasing or decreasing production capacity, the firm can produce more or less of a product, while inventory management allows the firm to adjust the amount of the product available for sale at any given time.

Question 10

The use of a part-time workforce to increase the capacity flexibility by enabling the firm to have more people at work during peak periods is designing product flexibility into the production processes.

Accepted Answer

This strategy is actually an example of increasing capacity flexibility through workforce management, not designing product flexibility into production processes. Product flexibility refers to the ability to produce a wide range of products without significant changeover time or costs.

Question 11

With supply and demand management decisions being made independently,it is easier to coordinate the supply chain,thereby increasing profit.

Accepted Answer

When supply and demand management decisions are made independently, it can lead to mismatched resources and inventory levels, resulting in suboptimal performance of the supply chain. Therefore, coordination between supply and demand management is necessary to increase profit.

Question 12

The disadvantage of carrying enough manufacturing capacity to meet demand in any period is that much of the expensive capacity would go unused during most months when demand was lower.

Accepted Answer

This statement is true. Carrying enough manufacturing capacity to meet demand in any period would likely result in excess capacity going unused during slower months, which is an inefficient use of resources and can increase costs.

Question 13

A firm that has production lines whose production rate can easily be varied to match demand has designed product flexibility into the production processes.

Accepted Answer

The ability to easily vary production rates is a characteristic of product flexibility, indicating that the firm has designed its production processes to accommodate changes in demand.

Question 14

Operations usually make the promotion and pricing decisions.

Accepted Answer

Operations are typically responsible for managing the production, logistics, and supply chain aspects of a business. Marketing departments are usually responsible for making promotion and pricing decisions.

Question 15

A firm that builds dedicated facilities to produce a relatively stable output of products over time in a very efficient manner and purchases peak production capability from other companies is using subcontracting.

Accepted Answer

The firm is using outsourcing, not subcontracting. Subcontracting refers to hiring another company to perform part of the production process, while outsourcing refers to obtaining goods or services from an external supplier.

Question 16

The use of a seasonal workforce requires that the workforce be multi-skilled and easily adapt to being moved from line to line.

Accepted Answer

A seasonal workforce is typically hired for a short period of time to handle an increase in demand during a specific season. To be effective, these workers should be able to perform multiple tasks, as their duties may change from day to day or even hour to hour. Flexibility and adaptability are key qualities for a successful seasonal workforce.

Question 17

Faced with predictable variability of demand,a company's goal is to respond in a manner that maximizes profitability.

Accepted Answer

A company's goal is to respond to predictable variability of demand in a manner that maximizes profitability. This involves implementing strategies such as adjusting prices, managing inventory levels, and optimizing production schedules.

Question 18

A firm that purchases peak production capability from other companies so that internal production remains level and can be done cheaply is using subcontracting.

Accepted Answer

Subcontracting is a common practice where a firm hires other companies to produce some of its components or services. This allows the firm to maintain a level of production without investing in additional resources, equipment, or labor. By outsourcing peak production capabilities to other companies, the firm can focus on its core competencies and reduce costs.

Question 19

The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight.

Accepted Answer

Using dual facilities to manage capacity involves having two separate locations or facilities for production or service delivery. This strategy requires sufficient labor to staff both facilities effectively. If the labor market is tight or there is a shortage of workers, it may be difficult to hire and retain enough staff to manage both facilities, making it hard to sustain this capacity management strategy. Therefore, the statement is true.

Question 20

Scheduling the workforce so that the available capacity better matches demand is using time flexibility from the workforce.

Accepted Answer

Scheduling the workforce with time flexibility means adjusting the work hours or schedule to better match the demand for a particular period. This is done to optimize the available capacity of the workforce and to make sure that the required work is done during peak times.

Quiz 9: Sales and Operations Planning: Planning Supply and Demand in a Supply Chain