a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: a

Difficulty: Moderate

21.

Which approach to capacity management makes use of overtime, which is varied to match the variation in demand? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: a

Difficulty: Easy

Which approach to capacity management would schedule the workforce so that the available capacity better matches demand? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: a

Difficulty: Easy

Which approach to capacity management would use a part-time workforce to increase capacity flexibility by enabling the firm to have more people at work during peak periods?

a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: a

Difficulty: Moderate

The key to which capacity management approach would involve having both volume (fluctuating demand from a manufacturer) and variety flexibility (demand from several manufacturers) to be sustainable? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: c

Difficulty: Hard

22.

23.

24.

25.

Which approach to capacity management would require that the workforce be multi-skilled and easily adapt to being moved from line to line? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: e

Difficulty: Moderate

Which approach to capacity management would use production machinery that can be changed easily from producing one product to another? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: e

Difficulty: Moderate

Which approach to capacity management would only be effective if the overall demand across all the products is relatively constant? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. designing product flexibility into the production processes Answer: e

Difficulty: Hard

Which of the following is an approach that firms can use when managing inventory to meet predictable demand variability? a. time flexibility from workforce b. use of seasonal workforce c. use of subcontracting

d. use of dual facilities—dedicated and flexible

e. using common components across multiple products Answer: e

Difficulty: Moderate

When a firm designs common components used in multiple products, with each product having predictably variable demand, they are trying to a. develop relatively constant overall demand. b. use a seasonal workforce. c. build inventory of high demand or predictable demand products. d. use subcontracting. e. use dual facilities—dedicated and flexible. Answer: d

Difficulty: Easy

26.

27.

28.

29.

30.

When most of the products a firm produces have the same peak demand season, in order to meet predictable variability with inventory, it must a. use common components across multiple products. b. use a seasonal workforce.

c. build inventory of high demand or predictable demand products. d. use subcontracting.

e. use dual facilities—dedicated and flexible. Answer: c

Difficulty: Moderate

Supply chains can influence demand by using a. production capacity and inventory. b. pricing and other promotions. c. price promotions and inventory.

d. production capacity and inventory promotions. e. production capacity and other promotions. Answer: b

Difficulty: Moderate

The pricing and promotion decisions are often made by a. marketing and sales. b. marketing and operations. c. operations and sales. d. marketing, operations, and sales. e. marketing and operations without sales. Answer: a

Difficulty: Moderate

The promotion and pricing decisions made by marketing and sales typically have the objective of a. maximizing profitability. b. minimizing profitability. c. minimizing revenue. d. maximizing revenue. e. maximizing profitability across the supply chain. Answer: d

Difficulty: Hard

Pricing decisions based only on revenue considerations often result in a. a decrease in overall profitability. b. an increase in overall profitability. c. a decrease in overall revenue. d. a decrease in supply chain revenue. e. an increase in supply chain profitability. Answer: a

Difficulty: Moderate

The combination of pricing and aggregate planning (both demand and supply management) can be used to a. maximize customer orders. b. minimize customer orders.

31.

32.

33.

34.

35.

c. maximize supply chain profitability. d. minimize supply chain profitability. e. None of the above are accurate. Answer: c

Difficulty: Easy

36.

When performing aggregate planning, the goal of all firms should be to a. minimize company profits. b. maximize company profits. c. minimize supply chain profits. d. maximize supply chain profits. e. All of the above are accurate. Answer: d

Difficulty: Moderate

When planning, the goal of all firms in the supply chain should be to maximize supply chain profits because a. this leaves them less profit to divide among themselves. b. this leaves them more profit to divide among themselves. c. this outcome leaves them more profit to pay tax on. d. this outcome will increase their charitable giving. e. none of the above Answer: b

Difficulty: Easy

One key to successful collaboration when the supply chain is performing aggregate planning is a. determining how losses will be allocated to different members of the

supply chain.

b. determining how profits will be allocated to different members of the

supply chain.

c. determining how labor will be allocated to different members of the supply

chain.

d. determining how customers will be allocated to different members of the

supply chain.

e. none of the above Answer: b

Difficulty: Moderate

Which of the following is not a key factor influencing the timing of a trade promotion? a. impact of the promotion on demand b. product margins c. cost of holding inventory d. cost of changing capacity e. none of the above Answer: e

Difficulty: Moderate

Which of the following is not a factor that would result in increased demand from a trade promotion?

37.

38.

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40.