CH 7 T/F – Flashcards
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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.
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External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.
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Forecasting has become extremely accurate, especially since the development of the S process.
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Dependent demand is directly influenced by independent demand.
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A weighted moving average assigns higher weights to more recent periods.
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Exponential smoothing can use constants higher than 1, but not more than 5.
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Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.
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While there are four types of forecast error measures that can be used, none are foolproof.
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A sales and operations planning process (S) can produce a forecast internally that all functional areas agree upon and can execute.
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Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.
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A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.
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An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs.
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Integrated fulfillment is preferred to dedicated fulfillment.
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