Supply Chain Logistics Management 5Th Edition By Donald Bowersox – Test Bank

Complete Test Bank With Answers

 

 

Sample Questions Posted Below

 

Supply Chain Logistics Management, 5e (Bowersox)

Chapter 5 Integrated Operations Planning

1) Knowing the location and status of inventory and resources is referred to as:

A) intelligence

B) visibility

C) knowledge

D) integration

Answer: B

Difficulty: 1 Easy

Topic: Supply Chain Planning

Learning Objective: 05-01 Supply Chain Planning

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

2) Which of the following illustrates a typical conflict in objectives between sales and

operations?

A) operations prefers many product variation, sales prefers few product variations

B) operations prefers long lead times, sales prefers short lead times.

C) operations prefers maximized revenue, sales prefers maximized production

D) operations prefers responsive schedules, sales prefers stable schedules

Answer: B

Difficulty: 2 Medium

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

3) When a company implements its monthly S&OP process, the process should begin with:

A) Developing and specifying the constraints related to manufacturing capabilities

B) Determining the business planning vs financial objectives

C) Looking at existing orders from major customers

D) Gathering information from sales and marketing

Answer: B

Difficulty: 1 Easy

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

1

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.4) Which of the following is NOT a benefit of S&OP?

A) the S&OP process eliminates the need to have finished goods inventory

B) the S&OP process results in better customer service

C) the S&OP process provides better visibility into future capacity problems

D) the S&OP process provides a single set of numbers to run the business.

Answer: A

Difficulty: 2 Medium

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

5) Which of the following is NOT a key to making S&OP work in an organization.

A) S&OP should be executed monthly

B) S&OP should have a clear leader

C) S&OP should focus 12-18 months into the future

D) None of the above

Answer: C

Difficulty: 2 Medium

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

6) In recent years some companies have begun to work closely with their customers and/or

suppliers by sharing information to develop forecasts of demand. The procedure they are

following is known as:

A) Coordinated Forecasting of requirements

B) Joint planning of Demand Forecasts

C) Collaborative Planning, Forecasting, and Replenishment

D) Conjoint Analysis and Forecasting

Answer: C

Difficulty: 1 Easy

Topic: Collaborative Planning, Forecasting and Replenishment

Learning Objective: 05-05 Collaborative Planning, Forecasting and Replenishment

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

2

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.7) If Dell computer is making a forecast for the next year, which of the following forecasts

would most likely have the largest forecast error (as measure by the percentage error)?

A) Total number of computers (laptops and desktops) to be sold next year in US

B) Total number of laptops to be sold next year in US

C) Total number of desktop to be sold next year in US

D) Total number of laptops with 2 Gigabyte RAM, 80 Gigabyte hard drive and 16x DVD drive

to be sold next year in US

Answer: D

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

[The following information applies to the questions displayed below.]

Actual

Period

Demand Forecast Demand Error Absolute Value

1 800 1100 (300) 300

2 1200 1000 200 200

3 1400 1500 (100) 100

8) What is the Mean Absolute Deviation (MAD)?

A) 200

B) 225

C) -66.67

D) 1200

Answer: A

Explanation: MAD is the average of the absolute value of the error. MAD=300+200+100/3=200

Difficulty: 3 Hard

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Analyze

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

3

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.9) The Mean Absolute Percentage Error (MAPE) is approximately:

A) 200%

B) -27.98%

C) 20.44%

D) 53.93%

Answer: C

Explanation:

Period

Actual

Demand

Forecast

Demand Error

Absolute

Value

Absolute Percentage

Error

1 800 1100 (300) 300 300/800 = 37.5 %

2 1200 1000 200 200 200/1200 = 16.67 %

3 1400 1500 (100) 100 100/1400 = 7.14 %

MAPE = 37.5%+16.67%+7.14% / 3=20.44%

Difficulty: 3 Hard

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Analyze

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

10) Which function typically needs the most detailed forecasts and therefore typically deals with

the highest forecast error?

A) logistics

B) production

C) finance

D) marketing

Answer: A

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

4

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.11) Accurate forecasting is most critical;

A) when lead times are long

B) when there are high economies of scale in manufacturing

C) when there are high economies of scale in transportation

D) all of the above

Answer: D

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

12) The component of a forecast that is impossible to predict is:

A) base demand

B) trend

C) promotional

D) irregular

Answer: D

Difficulty: 1 Easy

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

13) Which of the following is not a time series technique of forecasting?

A) simulation

B) exponential smoothing

C) moving average

D) adaptive smoothing

Answer: A

Difficulty: 1 Easy

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

5

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.14) As a forecasting technique, moving average:

A) is useful when only base and irregular demand components exist

B) is never useful

C) is useful when demand patterns repeat with cyclic, trend, or seasonal components

D) is useful when there is a strong relationship between demand and certain independent

variables

Answer: A

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

15) It has been clearly demonstrated that quantitative techniques of forecasting always result in

less forecast error than qualitative techniques.

Answer: FALSE

Difficulty: 1 Easy

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

16) To effectively implement Sales and Operations Planning, sales and marketing people should

develop marketing plans based on their forecast of demand while operations should develop the

production plan based on their own forecast of demand.

Answer: FALSE

Difficulty: 1 Easy

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

6

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.17) S&OP is a process that applies only to manufacturing organizations.

Answer: FALSE

Difficulty: 1 Easy

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

18) Good supply chain visibility is achieved when a firm is able to identify its shipments and its

inventory.

Answer: FALSE

Difficulty: 2 Medium

Topic: Supply Chain Planning

Learning Objective: 05-01 Supply Chain Planning

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

19) S&OP is primarily concerned with implementation of advanced planning information

technology.

Answer: FALSE

Difficulty: 1 Easy

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

20) To insure that S&OP is most effectively implemented, a company should establish a specific

department charged with S&OP responsibility.

Answer: FALSE

Difficulty: 2 Medium

Topic: Sales and Operation Planning

Learning Objective: 05-03 Sales and Operation Planning

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

7

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.21) CPFR involves joint planning of forecasts between customers and suppliers.

Answer: TRUE

Difficulty: 1 Easy

Topic: Collaborative Planning, Forecasting and Replenishment

Learning Objective: 05-05 Collaborative Planning, Forecasting and Replenishment

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

22) A company that has a responsive supply chain capability is less reliant on forecasting than a

company that has an anticipatory supply chain.

Answer: TRUE

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

23) Of the various components of a forecast, the most controllable is the promotional component.

Answer: TRUE

Difficulty: 1 Easy

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

24) Use of statistical forecasting techniques removes the need for managerial judgment in

forecasting.

Answer: FALSE

Difficulty: 1 Easy

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

8

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.25) It is generally easier to provide an accurate forecast of SKU level demand than it is to

provide an accurate forecast of total demand.

Answer: FALSE

Difficulty: 2 Medium

Topic: Forecasting

Learning Objective: 05-06 Forecasting

Bloom’s: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

9

Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior

written consent of McGraw-Hill Education.