Seasonal demand can be met by
A) maintaining enough manufacturing capacity to meet demand in any period.
B) building up inventory during the off season to meet demand during peak seasons.
C) offering a price promotion during periods of low demand to shift some of the
demand into a slow period.
D) all of the above
Qualitative forecasting methods are most appropriate when
A) there is good historical data available.
B) there is little historical data available.
C) experts do not have critical market intelligence.
D) forecasting demand into the near future.
An online grocery store has a distinct advantage over a traditional model in the area of
A) Processing costs
B) Transportation costs
C) Facility costs
D) Information costs
One motivation for companies to shed noncore functions to their supply chains has been
to
A) increase supply chain membership and participation.
B) increase supply chain complexity to ease supply chain alignment.
C) maximize focus on local objectives.
D) take advantage of supplier and customer competencies that they did not possess.
The costs incurred in bringing material into a facility are
A) sourcing transportation costs.
B) outbound transportation costs.
C) crossbound transportation costs.
D) inbound transportation costs.
Walmart has worked to convert ________ at its stores from a cost to a profit generator.
A) energy usage
B) waste generation
C) water consumption
D) reduced packaging
Uncertainty in demand and economic factors should be included in the financial
evaluation of supply chain design decisions, because
A) the exclusion of certainty may have a significant impact on this evaluation.
B) the exclusion of uncertainty may have a significant impact on this evaluation.
C) the inclusion of certainty may have a significant impact on this evaluation.
D) the inclusion of uncertainty may have a significant impact on this evaluation.
Real time location tracking of vehicles relies on
A) citizen band radios.
B) vehicles.
C) teamsters.
D) global positioning systems.
Sturdy little donkeys are used to carry corpulent tourists up the Santorini caldera to the
town of Fira. One cruise line that routinely docks at the port is considering a plan to
maintain their own donkey herd, which will cost them $15,000 per thousand tourists.
The number of tourists needing this service is normally distributed, with a mean of
Usually, this is enough donkey capacity, but occasionally the cruise line rotates a bigger
ship through this route and the excursion director must purchase donkey capacity on the
spot market, where is costs $20 per tourist.
How many donkeys should the cruise line have in its herd?
A) 8,111
B) 7,977
C) 7,842
D) 7,707
The goal of any forecasting method is to
A) predict the random component of demand and estimate the systematic component.
B) predict the systematic component of demand and estimate the random component.
C) predict the seasonal component of demand and estimate the random component.
D) predict the random component of demand and estimate the seasonal component.
The disadvantage of building up inventory during the off season to meet demand during
peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to
period.
B) very high inventory costs because inventory needs to be carried from period to
period.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.