Exam 9: Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

When most of the products a firm produces have the same peak demand season, in order to meet predictable variability with inventory, it must

An increase in consumption of the product either from new or existing customers is

One key to successful collaboration when the supply chain is performing aggregate planning is

Offering a promotion during a peak period that has significant forward buying creates even more variable demand than before the promotion.

Customers substituting the firm's product for a competitor's product is

The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is

Scheduling the workforce so that the available capacity better matches demand is using time flexibility from the workforce.

A firm can vary supply of product by controlling

The capacity management approach that uses flexible work hours from the workforce to manage capacity to better meet demand is

As the product margin declines, promoting during the peak demand period becomes

Discuss key issues when managing predictable variability of demand within a supply chain.

Seasonal demand can be met by

The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight.

Customers moving up future purchases to the present is

A firm can handle predictable variability by managing

________ variability is change in demand that can be forecasted.

Which approach to capacity management makes use of spare plant capacity that exists in the form of hours when the plant is not operational?

Faced with predictable variability of demand, a company's goal is to respond in a manner that maximizes profitability.

Average inventory

The promotion and pricing decisions made by marketing and sales typically have the objective of