Supply Chain Management, 5e (Chopra/Meindl)
Chapter 7 Demand Forecasting in a Supply Chain
7.1 True/False Questions
1) The forecast of demand forms the basis for all strategic and planning decisions in a supply
chain.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
2) 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.
Answer: FALSE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
3) For pull processes, a manager must forecast what customer demand will be in order to plan the
level of available capacity and inventory.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
4) For push processes, a manager must forecast what customer demand will be in order to plan
the level of available capacity and inventory.
Answer: FALSE
Diff: 3
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
5) 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.
Answer: FALSE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7-1
, 6) When all stages of a supply chain produce a collaborative forecast, it tends to be much more
accurate.
Answer: TRUE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7) Leaders in many supply chains have started moving toward collaborative forecasting to
improve their ability to match supply and demand.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
8) Mature products with stable demand are usually the most difficult to forecast.
Answer: FALSE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
9) 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.
Answer: TRUE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
10) Forecasts are always right.
Answer: FALSE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
Learning Outcome: Describe major approaches to forecasting
11) Forecasts should include both the expected value of the forecast and a measure of forecast
error.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
Learning Outcome: Describe major approaches to forecasting
7-2
Chapter 7 Demand Forecasting in a Supply Chain
7.1 True/False Questions
1) The forecast of demand forms the basis for all strategic and planning decisions in a supply
chain.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
2) 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.
Answer: FALSE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
3) For pull processes, a manager must forecast what customer demand will be in order to plan the
level of available capacity and inventory.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
4) For push processes, a manager must forecast what customer demand will be in order to plan
the level of available capacity and inventory.
Answer: FALSE
Diff: 3
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
5) 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.
Answer: FALSE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7-1
, 6) When all stages of a supply chain produce a collaborative forecast, it tends to be much more
accurate.
Answer: TRUE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7) Leaders in many supply chains have started moving toward collaborative forecasting to
improve their ability to match supply and demand.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
8) Mature products with stable demand are usually the most difficult to forecast.
Answer: FALSE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
9) 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.
Answer: TRUE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
10) Forecasts are always right.
Answer: FALSE
Diff: 1
Topic: 7.1 The Role of Forecasting in a Supply Chain
Learning Outcome: Describe major approaches to forecasting
11) Forecasts should include both the expected value of the forecast and a measure of forecast
error.
Answer: TRUE
Diff: 2
Topic: 7.1 The Role of Forecasting in a Supply Chain
Learning Outcome: Describe major approaches to forecasting
7-2
