TCU Jordan Supply Chain Management Exam
2 with Complete Solutions Graded A+
Questions And Answers
Demand Planning. ANSWER -Combined process of forecasting and managing
customer demands
to create a planned pattern of demand that meet firm's operational and financial goals
Demand Forecasting. ANSWER -decision process in which managers predict demand
pattern
Demand Management. ANSWER -proactive approach in which managers attempt to
influence patterns of demand
- Use pricing, promotion, incentive to influence timing or quantity
- manage timing of order fulfillment
- encourage shifting to alternate products
- Revenue/Yield Management
Type of customer demand. ANSWER -Independent Demand: Finished Goods
Dependent Demand: Raw Materials, Component parts, sub - assemblies
Strategic Planning. ANSWER -Sales across network:
@GoldenMinds
,- SC network design
- Technology Investment
- Capacity plans
+ Sources of Supply, facility, transportation
Tactical Planning. ANSWER -Sales in a region
- Sales & operation plan
- Portfolio plan
+ aggregate plans, workforce plan, new product launches
Operational Plan. ANSWER -Sales in a location
- Inventory plans
- Purchasing
- Labor Scheduling
+Daily production, purchases order
Why do we use Forecast?. ANSWER -Plan the system
Plan the use of system
Plan the system. ANSWER -Involves long - range plan related to:
- Type of products and services to offer
- Facility and equipment levels
- Facility location
@GoldenMinds
,Plan the use of system. ANSWER -Generally involves short and medium range plans
related to:
- Inventory management
- Workforce level
- Purchasing
- Production
- Budgeting
- Scheduling
Forecast. ANSWER -A statement about the future value of a variable of interest
7 elements of Good Forecast. ANSWER -- timely
- accurate
- reliable
- meaningful units
- in writing
- simple to understand and use
- cost effective
6 Step in forecasting. ANSWER -- Determine purpose of forecast
- Establish time horizon
- Select forecasting technique
@GoldenMinds
, - Obtain, clean and analyze data
- Make the forecast
- Monitor the forecast
Important aspects of forecasting. ANSWER -- Expected level of demand (may be
function of structural variation such as trend or seasonal variation)
- Accuracy: related to potential size of forecast error
- Make major impact (good or bad) on: Revenue, Market Share, Cost, Inventory, Profit
Forecasting Approaches. ANSWER -Qualitative Forecasting: difficult, impossible to
quantify. permit the inclusion of soft information such as
- Human factors
- Personal Opinions
- Hunches
Quantitative Forecasting:
- Rely on hard data
- Involve either the projection of historical data or development method that attempt
to use causal variables to make a forecast
Qualitative Method. ANSWER -- Executive Judgment: input from high level manager
- Historical Analogy: similar product => demand for new product
- Delphi Method: aksing a panel of experts to individually repeatedly respond to a
series of question
- Grass Roots: seek input from people who are in close contact with customer and
product
@GoldenMinds
2 with Complete Solutions Graded A+
Questions And Answers
Demand Planning. ANSWER -Combined process of forecasting and managing
customer demands
to create a planned pattern of demand that meet firm's operational and financial goals
Demand Forecasting. ANSWER -decision process in which managers predict demand
pattern
Demand Management. ANSWER -proactive approach in which managers attempt to
influence patterns of demand
- Use pricing, promotion, incentive to influence timing or quantity
- manage timing of order fulfillment
- encourage shifting to alternate products
- Revenue/Yield Management
Type of customer demand. ANSWER -Independent Demand: Finished Goods
Dependent Demand: Raw Materials, Component parts, sub - assemblies
Strategic Planning. ANSWER -Sales across network:
@GoldenMinds
,- SC network design
- Technology Investment
- Capacity plans
+ Sources of Supply, facility, transportation
Tactical Planning. ANSWER -Sales in a region
- Sales & operation plan
- Portfolio plan
+ aggregate plans, workforce plan, new product launches
Operational Plan. ANSWER -Sales in a location
- Inventory plans
- Purchasing
- Labor Scheduling
+Daily production, purchases order
Why do we use Forecast?. ANSWER -Plan the system
Plan the use of system
Plan the system. ANSWER -Involves long - range plan related to:
- Type of products and services to offer
- Facility and equipment levels
- Facility location
@GoldenMinds
,Plan the use of system. ANSWER -Generally involves short and medium range plans
related to:
- Inventory management
- Workforce level
- Purchasing
- Production
- Budgeting
- Scheduling
Forecast. ANSWER -A statement about the future value of a variable of interest
7 elements of Good Forecast. ANSWER -- timely
- accurate
- reliable
- meaningful units
- in writing
- simple to understand and use
- cost effective
6 Step in forecasting. ANSWER -- Determine purpose of forecast
- Establish time horizon
- Select forecasting technique
@GoldenMinds
, - Obtain, clean and analyze data
- Make the forecast
- Monitor the forecast
Important aspects of forecasting. ANSWER -- Expected level of demand (may be
function of structural variation such as trend or seasonal variation)
- Accuracy: related to potential size of forecast error
- Make major impact (good or bad) on: Revenue, Market Share, Cost, Inventory, Profit
Forecasting Approaches. ANSWER -Qualitative Forecasting: difficult, impossible to
quantify. permit the inclusion of soft information such as
- Human factors
- Personal Opinions
- Hunches
Quantitative Forecasting:
- Rely on hard data
- Involve either the projection of historical data or development method that attempt
to use causal variables to make a forecast
Qualitative Method. ANSWER -- Executive Judgment: input from high level manager
- Historical Analogy: similar product => demand for new product
- Delphi Method: aksing a panel of experts to individually repeatedly respond to a
series of question
- Grass Roots: seek input from people who are in close contact with customer and
product
@GoldenMinds
