Sales And Operations Planning: Planning Supply And Demand In A Supply Chain

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Questions Bank

Understanding the Supply Chain
Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Drivers and Metrics
Designing Distribution Networks and Applications to e-Business
Network Design in the Supply Chain
Designing Global Supply Chain Networks
Demand Forecasting in a Supply Chain
Aggregate Planning in a Supply Chain
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Coordination in a Supply Chain
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Managing Uncertainty in a Supply Chain: Safety Inventory
Determining the Optimal Level of Product Availability
Transportation in a Supply Chain
Sourcing Decisions in a Supply Chain
Pricing and Revenue Management in a Supply Chain
Sustainability and the Supply Chain

All Questions

Question 1

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True/False

Predictable variability is change in demand that cannot be forecasted.

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Question 2

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True/False

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

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Question 3

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True/False

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.

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Question 4

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True/False

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.

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Question 5

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True/False

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

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Question 6

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

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Question 7

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

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Question 8

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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.

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Question 9

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

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Question 10

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

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Question 11

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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.

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Question 12

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

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Question 13

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Pricing decisions based only on revenue considerations often result in an increase in overall profitability.

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Question 14

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When performing aggregate planning, the goal of all firms in the supply chain should be to maximize individual firm profits.

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Question 15

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Determining how profits will be allocated to different members of the supply chain is a key to successful collaboration.

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Question 16

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In general, as the fraction of increased demand coming from forward buying grows, offering the promotion during the peak demand period becomes more attractive.

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Question 17

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Offering a promotion during a peak period that has significant forward buying creates even more variable demand than before the promotion.

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Question 18

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Promoting during a peak demand month may decrease overall profitability if a significant fraction of the demand increase results from a forward buy.

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Question 19

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As forward buying becomes a smaller fraction of the demand increase from a promotion, it is less profitable to promote during the peak period.

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Question 20

Multiple Choice

Predictable variability is

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change in demand that can be forecasted.

change in demand that cannot be forecasted.

change in demand that has been planned.

change in demand that has been scheduled.

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