SCMT 2103 MODULE 4 EXAM
QUESTIONS AND ANSWERS
Logistics lead time is the time ________________. - Correct Answers -from when an
order is placed until it's actually received and ready for use or sale
Extended lead times _________ agility and flexibility - Correct Answers -none of the
above
As the planning horizon increases, forecast error is expected to ________________. -
Correct Answers -increase
Procurement time, manufacturing time and delivery time are components of _______. -
Correct Answers -logistics lead time
The lead time gap is defined as the difference between ________ and the customer's
order cycle. - Correct Answers -logistics lead time
Globalization of production has led to ___________________. - Correct Answers -A &
B: extended supply chains and uncertainty in supply
Forecast error is expected to decrease ___________________. - Correct Answers -as
the planning horizon decreases
Which is a component of logistics lead time?
I. Customers order cycle time
II. Procurement time
III. Manufacturing time & delivery time - Correct Answers -II and III
One of the fundamental challenges faced by supply chain managers is the gap created
when the customer's order cycle is ___________ than the total lead time. - Correct
Answers -shorter than
Which is NOT a component of the logistics lead time? - Correct Answers -customer's
order cycle time
The difference between the logistics lead time and the customer's order cycle is called
_________. - Correct Answers -the lead time gap
, As supply chains become longer, supply uncertainty _____________. - Correct
Answers -increases
Which component of demand represents the degree to which the data is increasing or
decreasing over time? - Correct Answers -Trend
Which of the following is an example of noise in demand data? - Correct Answers -none
of the above - must be no explanation
When there is too much noise in the data, the only component of demand that can be
estimated is the_______ of demand. - Correct Answers -level
In pantry loading, the rate of consumption is ______, but the frequency of purchase is
reduced - Correct Answers -the same
In general, forecasters must consider which of the following? - Correct Answers -all of
the above (trend seasonality noise, promotional activity)
A purpose of the consensus meeting is to _______________________. - Correct
Answers -quantify the gap between supply and demand
Sales and operations planning should consider: - Correct Answers -All: capabilities of
logistics service providers, capabilities of suppliers, customer demand
Firms that practice S&OP with discipline are likely to experience higher levels of
_____________ relative to firms with weak undisciplined implementation. - Correct
Answers -All of above: order fill rate, gross margin, customer retention
An organization has developed three alternate sales and operations plans for the
coming six months and now must choose between them. They should consider: -
Correct Answers -All are good criteria for a sales and operation plan: how their plan will
impact supply chain partners what the cash flows are like, how flexible the plan is
Which component of demand represents the demand that would like exist without the
existence of either trend or seasonality? - Correct Answers -Level
Which of the following is an example of noise in demand data? - Correct Answers -an
unexplained decrease in sales of bottled water on the hottest day of the year.
When promotions exist in demand data, forecasters may respond by ______________.
- Correct Answers -A & B: filtering out the promotions or estimating what demand would
have been without the promotion
Noise is random variation in demand that ______. - Correct Answers -cannot be
explained
QUESTIONS AND ANSWERS
Logistics lead time is the time ________________. - Correct Answers -from when an
order is placed until it's actually received and ready for use or sale
Extended lead times _________ agility and flexibility - Correct Answers -none of the
above
As the planning horizon increases, forecast error is expected to ________________. -
Correct Answers -increase
Procurement time, manufacturing time and delivery time are components of _______. -
Correct Answers -logistics lead time
The lead time gap is defined as the difference between ________ and the customer's
order cycle. - Correct Answers -logistics lead time
Globalization of production has led to ___________________. - Correct Answers -A &
B: extended supply chains and uncertainty in supply
Forecast error is expected to decrease ___________________. - Correct Answers -as
the planning horizon decreases
Which is a component of logistics lead time?
I. Customers order cycle time
II. Procurement time
III. Manufacturing time & delivery time - Correct Answers -II and III
One of the fundamental challenges faced by supply chain managers is the gap created
when the customer's order cycle is ___________ than the total lead time. - Correct
Answers -shorter than
Which is NOT a component of the logistics lead time? - Correct Answers -customer's
order cycle time
The difference between the logistics lead time and the customer's order cycle is called
_________. - Correct Answers -the lead time gap
, As supply chains become longer, supply uncertainty _____________. - Correct
Answers -increases
Which component of demand represents the degree to which the data is increasing or
decreasing over time? - Correct Answers -Trend
Which of the following is an example of noise in demand data? - Correct Answers -none
of the above - must be no explanation
When there is too much noise in the data, the only component of demand that can be
estimated is the_______ of demand. - Correct Answers -level
In pantry loading, the rate of consumption is ______, but the frequency of purchase is
reduced - Correct Answers -the same
In general, forecasters must consider which of the following? - Correct Answers -all of
the above (trend seasonality noise, promotional activity)
A purpose of the consensus meeting is to _______________________. - Correct
Answers -quantify the gap between supply and demand
Sales and operations planning should consider: - Correct Answers -All: capabilities of
logistics service providers, capabilities of suppliers, customer demand
Firms that practice S&OP with discipline are likely to experience higher levels of
_____________ relative to firms with weak undisciplined implementation. - Correct
Answers -All of above: order fill rate, gross margin, customer retention
An organization has developed three alternate sales and operations plans for the
coming six months and now must choose between them. They should consider: -
Correct Answers -All are good criteria for a sales and operation plan: how their plan will
impact supply chain partners what the cash flows are like, how flexible the plan is
Which component of demand represents the demand that would like exist without the
existence of either trend or seasonality? - Correct Answers -Level
Which of the following is an example of noise in demand data? - Correct Answers -an
unexplained decrease in sales of bottled water on the hottest day of the year.
When promotions exist in demand data, forecasters may respond by ______________.
- Correct Answers -A & B: filtering out the promotions or estimating what demand would
have been without the promotion
Noise is random variation in demand that ______. - Correct Answers -cannot be
explained
