45 True/False questions

1. Forecasting Accuracy → Forecast is the specific definition of what is projected to be sold, when and where
   
   Forecasting is a critical capability
   
   Many logistics and supply chain activities must be completed in anticipation of a sale
   
   Forecasting approaches to achieve:
   -enhanced service or reduced inventory
   
   Improve forecast accuracy
   Forecast at a higher level of aggregation

   True        False

2. Forecasts must be more timely and accurate to align → Customer demands for higher service levels and more product variations with
   A management focus to reduce supply chain assets

   True        False

3. Trend Component → is long-range shift in periodic sales
   Positive, negative or neutral

   True        False

4. Logistics Forecasts are Necessary To... → Support collaborative planning
   -Collaborative forecasts help avoid inventory
   excesses and out-of-stock situations
   Drive requirements planning to determine
   -Inventory projections
   -Replenishment requirements
   -Production requirements
   Improve resource management through cost trade-offs of strategies such as
   -Extra production capacity
   -Extra storage capacity

   True        False

5. Period demand equation → Demand management system is the information technology component of the sales and operations planning (S&OP) process
   
   Demand management develops the forecasts used by other supply chain processes to anticipate sales levels
   
   Forecasts are then used to determine production and inventory requirements
   
   Must maintain forecast data consistency across multiple products and warehouse facilities

   True        False

6. Base Demand → consists of order generation, and order fulfillment.

   True        False

7. CPFR Process Steps → 1.)Develop a joint business plan
   2.)Create a joint calendar to determine product flow
   3.)Create a common sales forecast based on shared knowledge of each trading partner's plan
   -Share common forecast between retailer and
   suppliers
   -Use an iterative process to share the forecast and
   requirements plan
   4.)Use the common sales forecast to develop
   -Production plan
   -Replenishment plan
   -Shipment plan

   True        False

8. Irregular Component → is long-range shift in periodic sales
   Positive, negative or neutral

   True        False

9. Evaluating Applicability of Forecasting Techniques → relies on expert opinion and special information
   Costly and time-consuming
   Ideal for situations with little historical data or when much managerial judgment are required
   Developed using surveys, panels and consensus meetings

   True        False

10. Forecast Challenges → -A meaningful forecast process requires integrated and consistent combination of components
    
    Faulty communications are costly for supply chains
    -Seek to reduce forecast inconsistency across
    multiple members of the supply chain
    
    Efforts to perfect a single component do not overcome need for other components
    
    Process design should consider strengths and weaknesses of each individual component
    -Design for optimal performance of the overall
    integrated system

    True        False

11. Demand Planning - Potential Issues / Watch-Outs → Historical forecasts
    Promotional plans
    Pricing changes
    New product introductions

    True        False

12. Collaborative Planning, Forecasting and Replenishment → Overcomes these problems resulting from individual perspectives
    
    Limited economies of scale
    Limited information sharing
    Excessive transportation expense

    True        False

13. Demand & Supply Management → Demand management system is the information technology component of the sales and operations planning (S&OP) process
    
    Demand management develops the forecasts used by other supply chain processes to anticipate sales levels
    
    Forecasts are then used to determine production and inventory requirements
    
    Must maintain forecast data consistency across multiple products and warehouse facilities

    True        False

14. Forecast Techniques → Moving average -- weighted average previous period sales
    Exponential smoothing -- WEIGHTED MOVING AVERAGE using smoothing constraints
    Regression -- Time period as the independent variable
    Time series -- Other independent variables such as price, promotion plans
    Multivariate -- Complex statistical techniques

    True        False

15. Qualitative forecast techniques → uses specific information to develop relationships between lead events and forecasted activity
    e.g., simple or multiple regression

    True        False

16. Cyclic Component → is long-range shift in periodic sales
    Positive, negative or neutral

    True        False

17. Supply Chain Planning → Plan
    Source
    Make
    Deliver
    Return

    True        False

18. Analysis: → consists of order generation, and order fulfillment.

    True        False

19. Basic planning formula → Demand management system is the information technology component of the sales and operations planning (S&OP) process
    
    Demand management develops the forecasts used by other supply chain processes to anticipate sales levels
    
    Forecasts are then used to determine production and inventory requirements
    
    Must maintain forecast data consistency across multiple products and warehouse facilities

    True        False

20. Forecasting → Forecast is the specific definition of what is projected to be sold, when and where
    
    Forecasting is a critical capability
    
    Many logistics and supply chain activities must be completed in anticipation of a sale
    
    Forecasting approaches to achieve:
    -enhanced service or reduced inventory
    
    Improve forecast accuracy
    Forecast at a higher level of aggregation

    True        False

21. Annual Business Planning → Strategic planning starts the process - 3-5 year horizon
    
    Integrated Operations Planning - Deliver the plan!
    Monitor, control, adjust for actual variance from plan

    True        False

22. 8 Keys to Successful S&OP Implementation → These applications can be sourced from the following options
    -Custom developed for the organization
    -Packaged solutions contained in a larger supply chain management system
    -Modules within an ERP system

    True        False

23. Production planning systems match → Production planning uses requirements from demand management to develop a realistic supply plan
    
    Must integrate with manufacturing (and 3rd party) resources and constraints
    
    -Requirements plan defines what items are needed and when
    
    -Effective planning creates a time-sequenced plan

    True        False

24. Execution: → Forecast is the specific definition of what is projected to be sold, when and where
    
    Forecasting is a critical capability
    
    Many logistics and supply chain activities must be completed in anticipation of a sale
    
    Forecasting approaches to achieve:
    -enhanced service or reduced inventory
    
    Improve forecast accuracy
    Forecast at a higher level of aggregation

    True        False

25. Forecasting Requirements → -Improving accuracy of forecasts requires error measurement followed by analysis
    -Choice of method for error measurement
    
    Simple average error can hide problems as positive errors are offset by negative ones
    Mean Absolute Deviation (MAD) evaluates absolute error by ignoring the sign of the error
    Mean Absolute Percentage Error (MAPE) is mean MAD divided by mean demand

    True        False

26. Forecast for time T → -A meaningful forecast process requires integrated and consistent combination of components
    
    Faulty communications are costly for supply chains
    -Seek to reduce forecast inconsistency across
    multiple members of the supply chain
    
    Efforts to perfect a single component do not overcome need for other components
    
    Process design should consider strengths and weaknesses of each individual component
    -Design for optimal performance of the overall
    integrated system

    True        False

27. Production Planning → Production planning uses requirements from demand management to develop a realistic supply plan
    
    Must integrate with manufacturing (and 3rd party) resources and constraints
    
    -Requirements plan defines what items are needed and when
    
    -Effective planning creates a time-sequenced plan

    True        False

28. Forecast Process → -A meaningful forecast process requires integrated and consistent combination of components
    
    Faulty communications are costly for supply chains
    -Seek to reduce forecast inconsistency across
    multiple members of the supply chain
    
    Efforts to perfect a single component do not overcome need for other components
    
    Process design should consider strengths and weaknesses of each individual component
    -Design for optimal performance of the overall
    integrated system

    True        False

29. Demand management processes must integrate → : consists of sales forecasting, order planning/forecasting, inventory positions, and transit lead times.

    True        False

30. Sourcing software applications → These applications can be sourced from the following options
    -Custom developed for the organization
    -Packaged solutions contained in a larger supply chain management system
    -Modules within an ERP system

    True        False

31. Logistics planning integrates overall → movement demand, vehicle availability, and relevant movement cost into a decision support system that seeks to minimize overall freight expense
    
    -Analysis suggests ways freight can be shifted among carriers or consolidated to lower expenses

    True        False

32. Benefits of Integrated Operations Planning → Strategic planning starts the process - 3-5 year horizon
    
    Integrated Operations Planning - Deliver the plan!
    Monitor, control, adjust for actual variance from plan

    True        False

33. Perod logistics requirements equation → Forecasts+Customer orders + promotions

    True        False

34. Benefits of CFPR - Five Major Categories → Improved Customer Service Through Better Forecasting Techniques
    Lower Inventories for Higher Profits
    Improved ROI on Technology Investment
    Improved Relationships Between Trading Partners
    Cost Reduction

    True        False

35. Time series forecast techniques → focuses entirely on historical patterns and pattern changes to generate forecasts
    "The past is a good predictor of the future"
    e.g., moving averages, exponential smoothing, extended smoothing, and adaptive smoothing

    True        False

36. Logistics Planning & Inventory Deployment → movement demand, vehicle availability, and relevant movement cost into a decision support system that seeks to minimize overall freight expense
    
    -Analysis suggests ways freight can be shifted among carriers or consolidated to lower expenses

    True        False

37. Making S&OP Work in an Organization Requires Senior Leadership Involvement → -Organizational processes
    -Personal responsibility and accountability
    -Information systems (financial, marketing and supply chain planning)
    
    Using this S&OP combination, the operations and sales groups must overcome conflicts to develop consensus and then execute their collaborative plans
    Finance also plays a key role in dollarizing the impact of decisions

    True        False

38. Sales & operations planning is an integrated combination of → -Organizational processes
    -Personal responsibility and accountability
    -Information systems (financial, marketing and supply chain planning)
    
    Using this S&OP combination, the operations and sales groups must overcome conflicts to develop consensus and then execute their collaborative plans
    Finance also plays a key role in dollarizing the impact of decisions

    True        False

39. Demand Planning → Production planning uses requirements from demand management to develop a realistic supply plan
    
    Must integrate with manufacturing (and 3rd party) resources and constraints
    
    -Requirements plan defines what items are needed and when
    
    -Effective planning creates a time-sequenced plan

    True        False

40. Strategy & Planning: → establishes the ground rules for the collaborative relationship
    Business goals
    Scope of collaboration and assignment of roles
    Responsibilities
    Checkpoints / milestones
    Escalation procedures

    True        False

41. Promotional Component → is annual recurring upward or downward movement in demand
    e.g. Toy demand before Christmas

    True        False

42. Seasonal Component → is annual recurring upward or downward movement in demand
    e.g. Toy demand before Christmas

    True        False

43. Causal forecast techniques → uses specific information to develop relationships between lead events and forecasted activity
    e.g., simple or multiple regression

    True        False

44. Common software applications for most planning environments include: → CFPR is a business model that takes a holistic approach to supply chain management and combines the intelligence of multiple trading partners in planning and fulfilling customer demand by using common metrics, language and firm agreements to improve efficiency for all participants.
    
    CFPR links sales and marketing best practices - category management, supply chain planning and execution processes to increase availability while reducing inventory, merchandizing, transportation, and logistics costs.
    
    Developed to reduce unplanned and uncoordinated events that distort the smooth flow of product throughout the supply chain (reduces bullwhip effect)

    True        False

45. Three Drivers of Effective Supply Chain Planning → 1.) Supply Chain Visibility
    2.)Exception management to respond to disruptions and minimize/prevent potential problems
    3.) Enables identification of trade-offs that can increase functional costs, but lower total system costs
    -Stay focused on the customer!

    True        False