Demand Management I
Demand Management I

Demand Management I

Lead Author(s): JWCC Content

Source: Skills Commons

Student Price: FREE

A supply chain management question pack from John Wood Community College.

Demand Management Q1

Two types of demand exist - independent demand and dependent demand.

A

True

B

False

Demand Management Q2

Service-oriented architecture is the underlying structure supporting communications between services with 'plug and play' functionality.

A

True

B

False

Demand Management Q3

A back order occurs when a seller has only a portion of the products ordered by the buyer.

A

True

B

False

Demand Management Q4

Forecasts are always accurate.

A

True

B

False

Demand Management Q5

The two basic forms of the EOQ model are the fixed quantity model and the fixed interval model.

A

True

B

False

Demand Management Q6

CPFR was started in 1995 between Walmart and Johnson & Johnson's predecessor, Warner-Lambert.

A

True

B

False

Demand Management Q7

Vendor-managed inventory's goal is to minimize inventory levels with an emphasis on frequent deliveries of smaller quantities and alliances with customers.

A

True

B

False

Demand Management Q8

Inventory costs and inventory levels have declined relative to GDP over the last 20 years.

A

True

B

False

Demand Management Q9

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources.

A

True

B

False

Demand Management Q10

Channel systems can be classified as either in-house or outsourced and can be further divided into traditional and vertical marketing systems.

A

True

B

False

Demand Management Q11

The first step in the S&OP planning process is the demand planning phase.

A

True

B

False

Demand Management Q12

The four basic functions of the logistics channel are sorting out, accumulating, allocating, and assorting.

A

True

B

False

Demand Management Q13

Dependent demand is the demand for the primary item.

A

True

B

False

Demand Management Q14

Outsourced fulfillment occurs when the manufacturer delivers its product direcly to a retailer's stores.

A

True

B

False

Demand Management Q15

Stockout cost is the cost associated with not having a product available to meet demand.

A

True

B

False

Demand Management Q16 - Q25

Matching

Premise
Response
1

The seller has the inventory and can promise a delivery date

A

back order

2

Includes not only both order cycle but also maintenance time; popular metric used in the vehicle repair

B

logistics operations responsiveness

3

Designed to capture the buyer experience with product availability; e.g. order fill rates and perfect order rates

C

customer wait time

4

Experience increased demand from customers¸ which creates challenges in trying to keep enough inventory available

D

internal metrics

5

Occurs when a seller only has a portion of the products ordered by the buyer

E

inventory carrying cost

6

Even though the seller does not have physical possession of the inventory to fill the order¸ but the seller can still promise a delivery date

F

external metrics

7

Found in product demand or the supply of raw materials; creates challenges in determining how much inventory to accumulate

G

available to promise

8

Examines how well a seller can respond to a buyer's needs

H

available to deliver

9

Designed to measure the efficiency of how well the seller is setting its inventories to fill items or lines on an order; e.g. item fill rate and line fill rate

I

seasonality

10

Costs incurred by inventory at rest and waiting to be used

J

consumer packaged goods firms

Demand Management Q26

Which of the following is NOT a question that should be asked when determining the appropriate inventory model?

A

What is the lead time?

B

Is the demand for the item dependent or independent?

C

Is the distribution system based upon a push or pull approach?

D

Do the inventory decisions apply to one facility or multiple facilities?

Demand Management Q27

Which of the following is not a component of inventory carrying cost?

A

capital cost

B

storage space cost

C

product cost

D

inventory risk cost

Demand Management Q28

Which of the following is a type of inventory?

A

cycle stock

B

backorder stock

C

finished goods

D

delivered goods

Demand Management Q29

What is the first step in the S&OP planning process?

A

Run sales forecast reports

B

Demand planning phase

C

Supply planning phase

D

Pre-S&OP meeting