LSCM 3960 ch 7 test bank

outbound-to-customer logistics systems are also referred to as physical distribution. t/f
true
Materials management and physical supply are terms that cannot be used interchangeably. t/f
false
Demand management might be defined as focused efforts to estimate and manage customers’ demand, with the intention of using this information to shape operating decisions t/f
true
Phantom demand is created by over-ordering during peak demand t/f
true
The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks t/f
false
External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand. t/f
false
Forecasting has become extremely accurate, especially since the development of the S&OP process. t/f
false
Dependent demand is directly influenced by independent demand. t/f
true
A weighted moving average assigns higher weights to more recent periods. t/f
true
Exponential smoothing can use constants higher than 1, but not more than 5. t/f
false
Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast. t/f
true
While there are four types of forecast error measures that can be used, none are foolproof. t/f
true
A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute. t/f
true
Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation. t/f
false
A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow. t/f
false
An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs. t/f
true
integrated fulfillment is preferred to dedicated fulfillment. t/f
false
An outbound-to-customer logistics system is also referred to as
physical distribution
An inbound-to-operations logistics system is also referred to as
physical supply
Demand management includes
-flows of products,
-services
-capital
all
The term functional silos refers to:
lack of coordination between departments
Oversupply is created by
phantom demand
The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions
customer demand
The internal balancing method deals with
inventory and production flexibility
One type of demand fluctuation is caused by random variation. What is random variation?
a development that cannot normally be anticipated
The weighted moving average method assigns
a weight to each previous period
Exponential smoothing
is one of the most commonly used techniques
Four types of forecast error measures can be used. Which one of the following is not one of the four types?
a. cumulative sum of forecast errors
b. exponential smoothing for trends
c. mean squared error
d. mean absolute deviation
exponential smoothing for trends
Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are
-quick response (QR)
-vendor-managed inventory (VMI)
-efficient consumer response (ECR)
all