chopra_scm5_tif_ch07.doc

 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: T!" #iff: $ Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting $) Throughout the supply chain, all pull processes p rocesses are performed in anticipation of customer demand, whereas all push processes are performed in response to customer demand. Answer: FA%" #iff: 1 Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting -) For pull processes, a manager must forecast what customer demand will be in order to plan p lan the leel of aailable capacity c apacity and inentory. Answer: T!" #iff: $ Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting ) For push processes, a manager must forecast what customer demand will be in order to plan the leel of aailable capacity and inentory. Answer: FA%" #iff: Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting 0) The result when each stage in the supply chain ma(es its own separate forecast is often a match between supply and demand, because these forecasts are often ery different. Answer: FA%" #iff: $ Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting

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) 8hen all stages of a supply chain produce a collaboratie forecast, it tends to be much more accurate. Answer: T!" #iff: 1 Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting 7) eaders in many supply chains hae started moing toward collaboratie forecasting to improe their ability to match supply and demand. de mand. Answer: T!" #iff: $ Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting 9) ature products with stable demand are usually the most difficult to forecast. Answer: FA%" #iff: $ Topic: 7.1 The ole of Forecasting Forecasting in a %upply &hain AA&%': Analytic %(ills earning *utcome: #escribe ma+or approaches to forecasting ;) Forecasting and the accompanying managerial decisions are e