Managing Supply Chains A Logistics Approach International Edition 9th Edition by Coyle – Test Bank

Managing Supply Chains A Logistics Approach International Edition 9th Edition by Coyle – Test Bank

CHAPTER 7 TEST QUESTIONS

True-False

1. Outbound-to-customer logistics systems are also referred to as physical distribution.
ANSWER: True

2. Materials management and physical supply are terms that cannot be used interchangeably.
ANSWER: False

3. 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: True

4. Phantom demand is created by over-ordering during peak demand.
ANSWER: True

5. The essence of demand management is to manage customer demand so that overstocks are reduced and margin can be maintained.
ANSWER: False

6. External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.
ANSWER: False

7. Forecasting has become extremely accurate, especially since the development of the S&OP process.
ANSWER: False

8. Dependent demand is directly influenced by independent demand.
ANSWER: True

9. A weighted moving average assigns higher weights to more recent periods.
ANSWER: True

10. Exponential smoothing can use constants higher than 1, but not more than 5.
ANSWER: False

11. Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.
ANSWER: True

12. While there are four types of forecast error measures that can be used, none are foolproof.
ANSWER: True