Ignoring uncertainty in demand encourages a greater use of
A) expensive but flexible transportation modes.
B) inexpensive and inflexible transportation modes.
C) inexpensive and flexible transportation modes.
D) expensive and inflexible transportation modes.
What is the responsibility of a designated category leader?
A) The category leader manages replenishment decisions for all suppliers.
B) The category leader manages purchasing decisions for all retailers.
C) The category leader manages purchasing decisions for all customers.
D) The category leader manages replenishment decisions for all retailers.
Between 1993 and 2006, Dell’s competitive strategy was to provide a large variety of
customizable products at a reasonable price. Given the focus on customization, Dell’s
supply chain was designed to
A) be responsive.
B) provide a different product.
C) operate on a low-cost basis.
D) provide sustainable products.
In adaptive forecasting,
A) there is an assumption that the estimates of level, trend, and seasonality within the
systematic component do not vary as new demand is observed.
B) the estimates of level, trend, and seasonality within the systematic component are
not adjusted as new demand is observed.
C) the estimates of level, trend, and seasonality are updated after each demand
observation.
D) All of the above are true.
The value chain consists of direct and indirect activities. Which of the following is an
indirect activity for an enterprise?
A) Marketing
B) Distribution
C) Human Resources
D) Service
A firm can vary supply of product by controlling
A) production capacity and inventory.
B) production capacity and price promotions.
C) price promotions and inventory.
D) production capacity and inventory promotions.
The full benefit of coordination is achieved when
A) all adjacent pairs of supply chain partners are coordinated.
B) the entire supply chain network is coordinated.
C) the POS data is shared with the manufacturer.
D) the POS data is shared with the retailer.
In most supply chains, the key to reducing the underlying forecast uncertainty is to link
all forecasts throughout the supply chain to customer demand data.
Gang Aft Agley, a manufacturing company, faces the aggregate planning problem
shown in the table below. Cost of regular production is $5 per unit, the cost of
producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit,
and the cost of carrying a unit in inventory from one month to the next is $2.
The labor contract at the plant prohibits both overtime and subcontracting output to
exceed 300 units in any five month window. The plant capacity is 600 units per month
produced using two shifts, regardless of the number of days in a month. By policy,
management wants to avoid stockouts.
Use the information from Scenario 8.1 to determine the number of constraints in this
scenario.
A) 12
B) 15
C) 20
D) 24
The two forms of supply chain assets are
A) capacity and inventory.
B) capacity and revenue.
C) inventory and revenue.
D) inventory and warehouse space.
Historical demand for Peeps is as displayed in the table.
The measure of whether a forecast method consistently over- or underestimates demand
is
A) mean absolute deviation (MAD).
B) mean absolute percentage error (MAPE).
C) bias.
D) the tracking signal.
Reducing greenhouse gas emissions was most cost effectively achieved by
A) rejecting the model of maximization of shareholder wealth as the firm objective.
B) adherence to ISO 14000 standards.
C) subsidizing companies that
D) charging for emissions.
The use of differential pricing over time or customer segments to maximize profits from
a limited set of supply chain assets is
A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.