Supply Chain Management, 5e (Chopra/Meindl)
Chapter 9 Sales and Operations Planning: Planning Supply and Demand in a Supply
Chain
9.1 True/False Questions
1) Predictable variability is change in demand that cannot be forecasted.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
2) Faced with predictable variability of demand, a company's goal is to respond in a manner that
maximizes profitability.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
3) The advantage of carrying enough manufacturing capacity to meet demand in any period is
very low inventory costs, because no inventory needs to be carried from period to period.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
4) The disadvantage of carrying enough manufacturing capacity to meet demand in any period is
that much of the expensive capacity would go unused during most months when demand was
lower.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
5) The advantage of building up inventory during the off season to keep production stable year
round lies in the fact that a firm could get by with a smaller, more expensive factory.
Answer: FALSE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
9-1
, 6) The disadvantage of building up inventory during the off season to keep production stable
year round is the expensive capacity that would go unused during most months when demand
was lower.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7) An approach where a firm works with their retail partners in the supply chain to offer a price
promotion during periods of low demand would shift some of the demand into a slow period,
thereby spreading demand more evenly throughout the year and reducing the seasonal surge.
Answer: TRUE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
8) With supply and demand management decisions being made independently, it is easier to
coordinate the supply chain, thereby increasing profit.
Answer: FALSE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
9) A firm can vary supply of product by controlling production capacity and inventory.
Answer: TRUE
Diff: 1
Topic: 9.2 Managing Supply
Learning Outcome: Compare common approaches to supply chain design
10) A firm that uses flexible work hours from the workforce to manage capacity to better meet
demand is using a seasonal workforce.
Answer: FALSE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
11) Scheduling the workforce so that the available capacity better matches demand is using time
flexibility from the workforce.
Answer: TRUE
Diff: 2
Topic: 9.2 Managing Supply
Learning Outcome: Compare common approaches to supply chain design
9-2
Chapter 9 Sales and Operations Planning: Planning Supply and Demand in a Supply
Chain
9.1 True/False Questions
1) Predictable variability is change in demand that cannot be forecasted.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
2) Faced with predictable variability of demand, a company's goal is to respond in a manner that
maximizes profitability.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
3) The advantage of carrying enough manufacturing capacity to meet demand in any period is
very low inventory costs, because no inventory needs to be carried from period to period.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
4) The disadvantage of carrying enough manufacturing capacity to meet demand in any period is
that much of the expensive capacity would go unused during most months when demand was
lower.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
5) The advantage of building up inventory during the off season to keep production stable year
round lies in the fact that a firm could get by with a smaller, more expensive factory.
Answer: FALSE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
9-1
, 6) The disadvantage of building up inventory during the off season to keep production stable
year round is the expensive capacity that would go unused during most months when demand
was lower.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Describe major approaches to forecasting
7) An approach where a firm works with their retail partners in the supply chain to offer a price
promotion during periods of low demand would shift some of the demand into a slow period,
thereby spreading demand more evenly throughout the year and reducing the seasonal surge.
Answer: TRUE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
8) With supply and demand management decisions being made independently, it is easier to
coordinate the supply chain, thereby increasing profit.
Answer: FALSE
Diff: 2
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
Learning Outcome: Describe major approaches to forecasting
9) A firm can vary supply of product by controlling production capacity and inventory.
Answer: TRUE
Diff: 1
Topic: 9.2 Managing Supply
Learning Outcome: Compare common approaches to supply chain design
10) A firm that uses flexible work hours from the workforce to manage capacity to better meet
demand is using a seasonal workforce.
Answer: FALSE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
11) Scheduling the workforce so that the available capacity better matches demand is using time
flexibility from the workforce.
Answer: TRUE
Diff: 2
Topic: 9.2 Managing Supply
Learning Outcome: Compare common approaches to supply chain design
9-2
