Scmn 3710 Test 2 Strickland Questions & Answers

Scmn 3710 Test 2 Strickland Questions & Answers 1. Be able to explain potential supply/demand misalignment throughout the life cycle of a product as shown on Fig. 7.1 on page 210 of your text. - ANSWER->z 2. What is the definition of demand management according to Blackwell & Blackwell? - ANSWER- >Focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions. 3. Explain the 4 methods commonly used to manage the imbalance between supply and demand. Which are internal and which are external? - ANSWER->External-Price, Lead time Internal- inventory, Production Flexibility 4. Explain the difference between independent and dependent demand. - ANSWER->Independentdemand for the Primary item, also called base demand Dependent- related item (component), Determined by level of independent demand 5. Differentiate between demand fluctuation caused by random variation, trends, seasonality, and business cycles - ANSWER->Random Variation- A development that cannot be anticipated and is usually the cause to hold safety stocks to avoid stockouts. Trends- a consistent gradual increase or decrease over time Seasonality- a repeating pattern tied to a calendar date Business cycles- Broad, uncontrollable trends related to overall economic conditions 6. How do you calculate forecast error? - ANSWER->Actual - Forecast 7. How do you calculate Mean Absolute Deviation (MAD) and Mean Absolute Percent Error (MAPE)? - ANSWER-> CONTINUES....