Chapter 4 : MGT1164

What is the primary goal of demand management?

• To increase production output

• To estimate and manage customer demand and make operating decisions

• To reduce supply chain costs

• To improve employee satisfaction

Which of the following is NOT a component of effective demand management?

• Gathering knowledge about consumers

• Developing products and services to solve customers’ problems

• Increasing inventory levels regardless of demand

• Sharing knowledge with supply chain members

What performance measure is used to determine the frequency of stockouts?

• Fill rate

• Stockout frequency

• Order shipped complete

• Service reliability

Which term describes the ability to perform all order-related activities and provide customers with critical information?

• Operational performance

• Availability

• Service reliability

• Demand planning

What does 'operational performance' NOT include?

• Speed

• Consistency

• Inventory turnover

• Flexibility

Which concept involves moving functions to the channel member that can perform them most effectively?

• Demand forecasting

• Operational performance

• Effective demand management

• Inventory management

Which measure indicates that an order was shipped to the correct location with the exact amount ordered?

• Fill rate

• Order shipped complete

• Service reliability

• Stockout frequency

Which of the following does demand management NOT directly support?

• Trade and promotion planning

• Manufacturing processes

• Employee performance reviews

• Inventory levels

What is an essential element for managing customer service effectively?

• Forecasting demand accurately

• Reducing transportation costs

• Providing consistent and accurate information

• Increasing supplier base

Which performance measure evaluates how well shipments arrive damage-free and invoices are correct?

• Stockout frequency

• Service reliability

• Operational performance

• Fill rate