SCMN 3710 Exam 2 Study Guide, Practice Questions and Complete Review 2026
Demand management - correct answer ✔✔Focused efforts to estimate and manage customers'
demand, with the intention of using this information to shape operating decisions
Purpose of Demand Management - correct answer ✔✔To further the ability of firms throughout
the
supply chain, but particularly manufacturing
through the customer, to collaborate on
activities related to the flow of product,
services, information, and finances.
-In order to create greater value for the
customer.
External balancing methods - correct answer ✔✔Change the manner in which customer orders
-price
-lead time
Internal balancing methods - correct answer ✔✔Manage gap using internal processes
-inventory
-production flexibility
Independent demand - correct answer ✔✔The demand for final products & has a demand
pattern affected by trends, seasonal patterns, & general market conditions.
Dependent demand - correct answer ✔✔demand for items that are subassemblies or
component parts to be used in the production of finished goods
,Causes of demand fluctuation - correct answer ✔✔Random variation: demand fluctuation that
cannot be anticipated.
Trends: a consistent gradual increase or decrease in demand over time.
Seasonal patterns: a repeated pattern tied to a calendar date.
Business cycle: broad, uncontrollable trends related to overall economic conditions.
Sales and Operations Planning (S&OP) - correct answer ✔✔A process to develop tactical plans
by integrating marketing plans for new and existing products with the management of the
supply chain.
CPFR (Collaborative Planning, Forecasting, and Replenishment) - correct answer ✔✔A method
to allow trading partners in the supply chain to collaboratively develop and agree upon a
forecast of sales to enable integrated operational planning and execution.
(T/F) Forecasts assume the past repeats itself - correct answer ✔✔True
Order management - correct answer ✔✔Phase 1: Influence the order- organizations attempt to
change the manner by which its customers place orders.
Phase 2: Execute the order- how an organization receives an order (electronically versus
manually), how it fills an order (inventory policy and number and location of warehouses), and
how it ships an order (mode choice and its impacts on delivery times) are all dictated by how an
organization manages an order.
Customer service - correct answer ✔✔Customer service is anything that touches the customer,
including all activities that impact information flow, product flow, and cash flow between the
organization and its customers.
Customer Relationship Management (CRM) - correct answer ✔✔Align the supplier's resources
with its customers in a manner that increases both customer satisfaction and supplier profits.
, 4 steps to implement a CRM process - correct answer ✔✔1. Segment the customer base by
profitability
2. Identify the product/service package for each customer segment
3. Develop and execute the best process
4. Measure performance and consistently improve
Influencing the order (CRM) - correct answer ✔✔Option 1: Offer the same product/service
offering to each customer segment, while varying the product quality or service levels.
Pro:
Easy for the supplier to manage.
Con:
Assumes that all customer segments value the same types of supplier offerings.
Option 2: Vary the service offerings for each customer segment.
Pro:
Meet the needs of each segment.
Con:
Difficult for the supplier to manage.
Influencing the order (ABC) - correct answer ✔✔Combining activity-based costing, customer
profitability, and customer segmentation tools to build profitable revenue.
Influencing the order (customer segmentation) - correct answer ✔✔1. Danger zone segment:
High cost to serve and low net sales value of customer.
2. Build segment: Low cost to serve and low net sales value of customer
3. Protect segment: Low cost to serve and high net sales value of customer
4. Cost engineer segment: High cost to serve and high net sales value of customer
Demand management - correct answer ✔✔Focused efforts to estimate and manage customers'
demand, with the intention of using this information to shape operating decisions
Purpose of Demand Management - correct answer ✔✔To further the ability of firms throughout
the
supply chain, but particularly manufacturing
through the customer, to collaborate on
activities related to the flow of product,
services, information, and finances.
-In order to create greater value for the
customer.
External balancing methods - correct answer ✔✔Change the manner in which customer orders
-price
-lead time
Internal balancing methods - correct answer ✔✔Manage gap using internal processes
-inventory
-production flexibility
Independent demand - correct answer ✔✔The demand for final products & has a demand
pattern affected by trends, seasonal patterns, & general market conditions.
Dependent demand - correct answer ✔✔demand for items that are subassemblies or
component parts to be used in the production of finished goods
,Causes of demand fluctuation - correct answer ✔✔Random variation: demand fluctuation that
cannot be anticipated.
Trends: a consistent gradual increase or decrease in demand over time.
Seasonal patterns: a repeated pattern tied to a calendar date.
Business cycle: broad, uncontrollable trends related to overall economic conditions.
Sales and Operations Planning (S&OP) - correct answer ✔✔A process to develop tactical plans
by integrating marketing plans for new and existing products with the management of the
supply chain.
CPFR (Collaborative Planning, Forecasting, and Replenishment) - correct answer ✔✔A method
to allow trading partners in the supply chain to collaboratively develop and agree upon a
forecast of sales to enable integrated operational planning and execution.
(T/F) Forecasts assume the past repeats itself - correct answer ✔✔True
Order management - correct answer ✔✔Phase 1: Influence the order- organizations attempt to
change the manner by which its customers place orders.
Phase 2: Execute the order- how an organization receives an order (electronically versus
manually), how it fills an order (inventory policy and number and location of warehouses), and
how it ships an order (mode choice and its impacts on delivery times) are all dictated by how an
organization manages an order.
Customer service - correct answer ✔✔Customer service is anything that touches the customer,
including all activities that impact information flow, product flow, and cash flow between the
organization and its customers.
Customer Relationship Management (CRM) - correct answer ✔✔Align the supplier's resources
with its customers in a manner that increases both customer satisfaction and supplier profits.
, 4 steps to implement a CRM process - correct answer ✔✔1. Segment the customer base by
profitability
2. Identify the product/service package for each customer segment
3. Develop and execute the best process
4. Measure performance and consistently improve
Influencing the order (CRM) - correct answer ✔✔Option 1: Offer the same product/service
offering to each customer segment, while varying the product quality or service levels.
Pro:
Easy for the supplier to manage.
Con:
Assumes that all customer segments value the same types of supplier offerings.
Option 2: Vary the service offerings for each customer segment.
Pro:
Meet the needs of each segment.
Con:
Difficult for the supplier to manage.
Influencing the order (ABC) - correct answer ✔✔Combining activity-based costing, customer
profitability, and customer segmentation tools to build profitable revenue.
Influencing the order (customer segmentation) - correct answer ✔✔1. Danger zone segment:
High cost to serve and low net sales value of customer.
2. Build segment: Low cost to serve and low net sales value of customer
3. Protect segment: Low cost to serve and high net sales value of customer
4. Cost engineer segment: High cost to serve and high net sales value of customer
