Chapter 3: Demand and Order Management

Question 1

Define Demand Management:

Answer 1

Approach in which managers attempt to customize their capacity to meet changes in demand or to manage the level of demand using marketing and/or supply chain management strategies.

Question 2

List the six main causes of demand variability:

Answer 2

1. Marketing and Sales promotions
2. Payment terms
3. Order policies
4. The complexity of distribution network
5. Lead time
6. Supply constraints

Question 3

Explain the main cause of demand variability: Marketing and Sales

Answer 3

“Buy one, Get one free”

Question 4

Explain the main cause of demand variability: Payment terms

Question 5

Explain the main cause of demand variability: Order policies

Question 6

Explain the main cause of demand variability: The complexity of the distribution network

Question 7

Explain the main cause of demand variability: Lead time

Question 8

Explain the main cause of demand variability: Supply constraints