Supply Chain Management (S214_MMZG621)

1. Which of the following is not a step to help an organization perform

effective forecasting?
Select one:
a. Understand the objective of forecasting.
b. Integrate demand planning and forecasting throughout the supply chain.
c. Understand and identify customer segments.
d. Identify and understand supplier requirements.
2.An increase in consumption of the product either from new or existing
customers is
Select one:
a. Forward buying.
b. Stealing share.
c. Forward selling.
d. Market growth.
3.Forecasts are always wrong and therefore
Select one:
a. Should be missing the expected value of the forecast and a measure of
forecast error.
b. Should only be used when there are no accurate estimates.
c. Should not include both the expected value of the forecast and a
measure of forecast error.
d. Should include both the expected value of the forecast and a measure of
forecast error.
4.Predictable variability is
Select one:
a. Change in demand that cannot be forecasted.
b. Change in demand that has been scheduled.
c. Change in demand that can be forecasted.

d. Change in demand that has been planned.

5.The measure of whether a forecast method consistently over- or
underestimates demand is
Select one:
a. Mean absolute percentage error (MAPE).
b. Mean absolute deviation (MAD).
c. Bias.
d. Mean squared error (MSE).
6.As the product margin declines, promoting during the peak demand
period becomes
Select one:
a. Less profitable.
b. More desirable.
c. More profitable.
d. Less of a risk.
7.Supply chain network design decisions classified as facility location are
concerned with
Select one:
a. How much capacity should be allocated to each facility.
b. What processes are performed at each facility?
c. What markets each facility should serve and which supply sources
should feed each facility.
d. Where facilities should be located.
8.Qualitative forecasting methods are most appropriate when
Select one:
a. Experts do not have critical market intelligence.
b. There is good historical data available.
c. Forecasting demand into the near future.
d. There is little historical data available.
9.The first step in decision tree analysis methodology is to
Select one:

a. Start at period T, work back to Period 0 identifying the optimal decision

and the expected cash flows at each step. Expected cash flows at each
step in a given period should be discounted back when included in the
previous period.
b. Identify the periodic discount rate k for each period.
c. Identify factors such as demand, price, and exchange rate, whose
fluctuation will be considered over the next T periods.
d. Identify the duration of each period (month, quarter, etc.) and the
number of periods T over which the decision is to be evaluated.
10.When most of the products a firm produces have the same peak
demand season, in order to meet predictable variability with inventory, it
must
Select one:
a. Use subcontracting.
b. Build inventory of high demand or predictable demand products.
c. Use common components across multiple products.
d. Use dual facilitiesdedicated and flexible.
e. Use a seasonal workforce.
11.One of the characteristics of forecasts is
Select one:
a. Forecasts are always wrong.
b. Short-term forecasts are usually less accurate than long-term forecasts.
c. Long-term forecasts are usually more accurate than short-term forecasts.
d. Forecasts are always right.
12.The disadvantage of maintaining enough manufacturing capacity to
meet demand in any period is
Select one:
a. The expensive capacity would be used consistently throughout the year.
b. Most of the expensive capacity would still be used during most months
when demand was lower.
c. Much of the expensive capacity would go unused during most months
when demand was lower.
d. Very low inventory costs because no inventory needs to be carried from
period to period.
13.The fundamental trade-offs available to an aggregate planner are
between

Select one:
a. Capability, inventory, and sales costs.
b. Capacity, inventory, and backlog costs.
c. Capability, inventory, and backlog costs.
d. Capacity, inventory, and sales costs.
14.Duties that must be paid when products and/or equipment are moved
across international, state, or city boundaries are referred to as
Select one:
a. Tariffs.
b. Incentives.
c. Taxes.
d. Tax incentives.
15.Decisions made during the supply chain design phase regarding
significant investments in the supply chain, such as the number and size of
plants to build, the number of trucks to purchase or lease, and whether to
build or lease warehouse space,
Select one:
a. Can only be altered in the short term.
b. Can be altered in the short term.
c. Cannot be altered in the short term.
d. Cannot be altered in the long term.
16.The present value of a future stream of cash flows is what that stream
Select one:
a. Was worth in yesterday's dollars.
b. Might be worth in future dollars.
c. Is worth in today's dollars.
d. Will be worth in future dollars.
17.Firms focusing on cost leadership tend to
Select one:
a. Locate facilities very far from the market they serve.
b. Locate facilities close to the market they serve.
c. Find the lowest cost location for their manufacturing facilities.

d. Select a high-cost location to be able to react quickly.

18.Which of the following is the first phase in the design of a global supply
chain network?
Select one:
a. Define a supply chain strategy
b. Define the regional facility configuration
c. Location choices
d. Select desirable sites
19.The evaluation of supply chain networks
Select one:
a. Should use only one metric.
b. Should use multiple metrics.
c. Should not use multiple metrics.
d. Should not use more than one metric.
20.Allocating too much capacity to a location results in
Select one:
a. High utilization, and as a result, higher costs.
b. High utilization, and as a result, lower costs.
c. Poor utilization, and as a result, lower costs.
d. Permanent damage.
e. Poor utilization, and as a result, higher costs.
21.Aggregate planning, to be effective, requires inputs from
Select one:
a. All customers.
b. All suppliers.
c. Throughout the supply chain.
d. All departments.
22.The strategy where a stable machine capacity and workforce are
maintained with a constant output rate, with inventory levels fluctuating
over time, is the
Select one:

a. Adjustable strategy.
b. Chase strategy.
c. Level strategy.
d. Mixed strategy.
23.How frequently should the aggregate plan be rerun?
Select one:
a. Every 3 to 8 months
b. Weekly
c. Monthly
d. As inputs to the aggregate plan change
24.The moving average forecast method is used when
Select one:
a. Demand has no observable trend or seasonality.
b. Demand has observable trend and seasonality.
c. Demand has no observable level or seasonality.
d. Demand has observable trend or seasonality.
25.As capacity utilization increases,
Select one:
a. It does not affect the importance of performing aggregate planning.
b. It lessens the importance of aggregate planning.
c. It becomes more important to perform aggregate planning.
d. It becomes less important to perform aggregate planning.