CH 7 T/F – Flashcards
Unlock all answers in this set
Unlock answersquestion
Outbound-to-customer logistics systems are also referred to as physical distribution.
answer
T
question
Materials management and physical supply are terms that cannot be used interchangeably.
answer
F
question
Demand management might be defined as focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions.
answer
T
question
Phantom demand is created by over-ordering during peak demand.
answer
T
question
The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks.
answer
F
question
External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.
answer
F
question
Forecasting has become extremely accurate, especially since the development of the S process.
answer
F
question
Dependent demand is directly influenced by independent demand.
answer
F
question
A weighted moving average assigns higher weights to more recent periods.
answer
T
question
Exponential smoothing can use constants higher than 1, but not more than 5.
answer
F
question
Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.
answer
T
question
While there are four types of forecast error measures that can be used, none are foolproof.
answer
T
question
A sales and operations planning process (S) can produce a forecast internally that all functional areas agree upon and can execute.
answer
T
question
Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.
answer
F
question
A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.
answer
F
question
An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs.
answer
T
question
Integrated fulfillment is preferred to dedicated fulfillment.
answer
F
