Quiz: Chapter 7 – Flashcards

Demand management includes A. flows of products. B. flows of services. C. flow of capital. D. all of the above.

Forecasting has become extremely accurate, especially since the development of the S&OP process. A. True B. False

An outbound-to-customer logistics system is also referred to as A. integrated fulfillment. B. dedicated fulfillment. C. store fulfillment. D. physical distribution.

Exponential smoothing can use constants higher than 1, but not more than 5. A. True B. False

The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions. A. channel orders B. vendors and suppliers C. customer demand D. SO&P processes

The weighted moving average method assigns A. a value in each period being averaged. B. a weight greater than 1. C. information based on a simple average. D. a weight to each previous period.

A weighted moving average assigns higher weights to more recent periods. A. True B. False

Exponential smoothing A. is one of the most commonly used techniques. B. uses primarily weighted averages to compensate for errors. C. is used to determine random variations. D. is used to reduce channel fluctuations.

Four types of forecast error measures can be used. Which one of the following is not one of the four types? A. Cumulative sum of forecast errors. B. Exponential smoothing for trends. C. Means squared error. D. Mean absolute deviation.

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. A. True B. False