True or False #7 Flashcards
The forecast of demand forms the basis for all strategic and planning decisions in a supply chain.
True
Throughout the supply chain, all pull processes are performed in anticipation of customer demand, whereas all push processes are performed in response to customer demand.
False
For pull processes, a manager must forecast what customer demand will be in order to plan the level of available capacity and inventory.
True
For push processes, a manager must forecast what customer demand will be in order to plan the level of available capacity and inventory.
False
The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand, because these forecasts are often very different.
False
When all stages of a supply chain produce a collaborative forecast, it tends to be much more accurate.
True
Leaders in many supply chains have started moving toward collaborative forecasting to improve their ability to match supply and demand.
True
Mature products with stable demand are usually the most difficult to forecast.
False
Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly variable.
True
Forecasts are always right.
False
Forecasts should include both the expected value of the forecast and a measure of forecast error.
True
Long-term forecasts are usually more accurate than short-term forecasts.
False
Aggregate forecasts are usually more accurate than disaggregate forecasts, as they tend to have a smaller standard deviation of error relative to the mean.
True
In general, the further up the supply chain a company is (or the further they are from the consumer), the smaller the distortion of information they receive.
False
Collaborative forecasting based on sales to the end customer can help enterprises further up the supply chain reduce forecast error.
True
