Chapter 3 Questions

Demand management includes which of the following activities?
I. Forecasting
II. Product Shipping
III. Entering customer orders
Forecasting and entering customer orders
Demand management is the firm’s connection to which of the following entities?
Marketplace
Sources of demand that are part of demand management include all of the following except:
a. Customer Orders
b. Service parts
c. Scrap products
d. Promotional inventory
Scrap products
Which of the following are examples of independent demand?
I. Customer Orders
II. Shipping samples to the sales team
III. Raw material usage
Customer orders and shipping samples to the sales team
Which of the following are examples of dependent demand?
I. Customer orders
II. Using finished goods stock to build preloaded store displays
III. Raw material usage
Using finished goods stock to build preloaded store displays and raw material usage
The customer order decoupling point is best defined as?
The point in the supply chain where demand changes from dependent to independent
In an engineer – to – order environment, the most likely point where customer order decoupling would take place is?
Suppliers
In an assemble – to – order environment, the most likely point where customer order decoupling would take place is?
Work – in – process parts and components
In a make – to – stock environment, the most likely point where customer order decoupling would take place is?
Finished goods
In which environment is defining the customer order in terms of components and options the key focus of demand management?
Assemble – to – order
Which of the following lists properly ranks the different environments from lowest to highest need to communicate with the customer?
Assemble – to – order, make – to – order, engineer – to – order
In an assemble – to – order environment, how many different product combinations are possible if the product is made from 12 components, each of which has three different options?
531,441
In a make – to – stock environment, what is the key problem?
Balancing inventory levels with customer service requirements
True or False: In an engineer- to – order environment, the forecasting process is not necessary.
False
Sales and operations planning can be completed at which of the following levels?
I. Product family
II. Region
III. Organizational unit
All of the above
The lifetime of a customer order (the time from receiving the order until order fulfillment) is longest in which environment?
Engineer – to – order
The lifetime of a customer order (the time from receiving the order until order fulfillment) is shortest in which environment?
Make – to – stock
In which environment is the demand management function least likely to provide customers with promise dates?
Make – to – stock
Which types of data are captured and monitored by the demand management function?
I. Detailed product mix
II. Product pricing
III. Overall market trends
All of the above
Collaborative planning, forecasting, and replenishment (CPFR) has been defined by the Voluntary Interindustry Commerce Standards Association as a process involving how many steps?
9
The first step in the collaborative planning, forecasting, and replenishment (CPFR) process is to
Establish a collaborative relationship
The main goal of a collaborative planning, forecasting, and replenishment (CPFR) process is to
Reduce the variance between supply and demand
A manufacturer of printer paper would most likely be what type of firm?
Make – to – stock
A manufacturer of jet airplanes would most likely be what type of firm?
Make – to – order
A local coffee house restaurant would most likely be what type of firm?
Assemble – to – order