Multiple Choice #9 Flashcards
Predictable variability is
A) change in demand that can be forecasted. B) change in demand that cannot be forecasted.
C) change in demand that has been planned. D) change in demand that has been scheduled.
E) all of the above
A) change in demand that can be forecasted.
Which of the following is not a problem caused by products experiencing predictable variability of demand?
A) High levels of stockouts during peak demand
B) High levels of excess inventory during periods of low demand
C) Increased responsiveness of the supply chain
D) Increased costs in the supply chain
E) Decreased responsiveness of the supply chain
C) Increased responsiveness of the supply chain
A firm can handle predictable variability by managing
A) supply using capacity, inventory, trade promotions, and backlogs.
B) supply using capacity, inventory, subcontracting, and backlogs.
C) demand using short-term price discounts and trade promotions.
D) A and C only
E) B and C only
E) B and C only
Seasonal demand can be met by
A) maintaining enough manufacturing capacity to meet demand in any period.
B) building up inventory during the off season to meet demand during peak seasons.
C) offering a price promotion during periods of low demand to shift some of the demand into a slow period.
D) all of the above
E) A and B only
D) all of the above
The advantage of maintaining enough manufacturing capacity to meet demand in any period is
A) very low inventory costs because inventory needs to be carried from period to period.
B) very low inventory costs because no inventory needs to be carried from period to period.
C) very high inventory costs because no inventory needs to be carried from period to period.
D) very high inventory costs because expensive capacity would go unused during most months when demand was lower.
E) none of the above
B) very low inventory costs because no inventory needs to be carried from period to period.
The disadvantage of maintaining enough manufacturing capacity to meet demand in any period is
A) much of the expensive capacity would go unused during most months when demand was lower.
B) the expensive capacity would be used consistently throughout the year.
C) most of the expensive capacity would still be used during most months when demand was lower.
D) very low inventory costs because no inventory needs to be carried from period to period.
E) None of the above are true.
A) much of the expensive capacity would go unused during most months when demand was lower.
The advantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period.
B) much of the expensive capacity would go unused during most months when demand was lower.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.
E) None of the above are true.
C) in the fact that a firm could get by with a smaller, less expensive factory.
The disadvantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.
E) None of the above are true.
B) very high inventory costs because inventory needs to be carried from period to period.
The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is
A) a demand pattern that is less expensive to supply.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller, more expensive factory.
D) much of the expensive capacity would go unused during most months when demand was lower.
E) all of the above
A) a demand pattern that is less expensive to supply.
Companies typically divide the task of supply and demand so that
A) Marketing manages demand and Operations manages supply.
B) Marketing manages supply and Operations manages demand.
C) Marketing manages demand and supply.
D) Operations manages demand and supply. E) none of the above
A) Marketing manages demand and Operations manages supply.
