chapter 7

1) The basis for all strategic and planning decisions in a supply chain comes from

• A) the forecast of demand.

• B) sales targets.

• C) profitability projections.

• D) production efficiency goals.

2) For push processes, a manager must forecast what customer demand will be in order to

• A) plan the service level.

• B) plan the level of available capacity and inventory.

• C) plan the level of productivity.

• D) plan the level of production.

3) The result of each stage in the supply chain making its own separate forecast is

• A) an accurate forecast.

• B) a more accurate forecast.

• C) a match between supply and demand.

• D) a mismatch between supply and demand.

4) When all stages of a supply chain produce a collaborative forecast, it tends tobe

• A) much more detailed.

• B) much more complex.

• C) much more accurate.

• D) much more flexible.

5) The resulting accuracy of a collaborative forecast enables supply chains to be

• A) more responsive but less efficient in serving their customers.

• B) both more responsive and more efficient in serving their customers.

• C) less responsive but less efficient in serving their customers.

• D) both less responsive and less efficient in serving their customers.

6) Leaders in many supply chains have started moving

• A) toward independent forecasting to improve their ability to match supply and demand.

• B) toward consecutive forecasting to improve their ability to match supply and demand.

• C) toward sequential forecasting to improve their ability to match supply and demand.

• D) toward collaborative forecasting to improve their ability to match supply and demand.

7) Production can utilize forecasts to make decisions concerning

• A) scheduling.

• B) sales-force allocation.

• C) promotions.

• D) budgetary planning.

8) Personnel can utilize forecasts to make decisions concerning

• A) scheduling.

• B) promotions.

• C) plant/equipment investment.

• D) purchasing.

9) Mature products with stable demand

• A) are usually easiest to forecast.

• B) are usually hardest to forecast.

• C) cannot be forecast.

• D) do not need to be forecast.

10) When either the supply of raw materials or the demand for the finished product is highly variable, forecasting and the accompanying managerial decisions

• A) are extremely simple.

• B) are relatively straightforward.

• C) are extremely difficult.

• D) should not be attempted.