2.
d. change in demand that has been scheduled. e. all of the above Answer: a
Difficulty: Easy
Which of the following is not a problem caused by products experiencing predictable variability of demand?
a. high levels of stockouts during peak demand
b. high levels of excess inventory during periods of low demand c. increased responsiveness of the supply chain d. increased costs in the supply chain
e. decreased responsiveness of the supply chain Answer: c
Difficulty: Easy
A firm can handle predictable variability by managing a. supply using capacity, inventory, trade promotions, and backlogs. b. supply using capacity, inventory, subcontracting, and backlogs. c. demand using short-term price discounts and trade promotions. d. a and c only e. b and c only Answer: e
Difficulty: Easy
Seasonal demand can be met by a. maintaining enough manufacturing capacity to meet demand in any
period.
b. building up inventory during the off season to meet demand during peak
seasons.
c. offering a price promotion during periods of low demand to shift some of
the demand into a slow period.
d. all of the above e. a and b only Answer: d
Difficulty: Moderate
The advantage of maintaining enough manufacturing capacity to meet demand in any period is a. very low inventory costs because inventory needs to be carried from
period to period.
b. very low inventory costs because no inventory needs to be carried from
period to period.
c. very high inventory costs because no inventory needs to be carried from
period to period.
d. very high inventory costs because expensive capacity would go unused
during most months when demand w