SCM - Week 2 - Supply & Demand

The demand is provided by the customer, called ? demand

Dependent demand inventories are computed and managed using

• Material Resources Planning (MRP)

• sales order process

• sales forecasts

The inventory flow from material suppliers to end customers goes in the same direction as the demand flow from independent demand to dependent demand. Is this a true statement?

• Yes

• No

Answer explanation

The point at which demand changes from independent to dependent is called

• Decoupling point

• Coupling point

• Detox point

The key demand management tasks of ATO are

• Provide Forecast

• Determine Delivery Dates

• Meet Delivery Dates

• Configuration Management

• Provide Engineering Capacity

Answer explanation

Some basic demand patterns are

• Trend

• Random Fluctuation

• Seasonal Fluctuation

• Cyclical

• Circlelar

Qualitative forecasting techniques include

• Moving Average

• Survey

• Weighted Average

• Exponential Smoothing

Answer explanation

How to manage the accuracy of the forecast?

• minimize the errors between the actual demand and the forecasted demand

• minimize the errors between the dependent demand and the forecasted demand

• minimize the errors between the independent demand and the forecasted demand

When using quantitative forecasting techniques, we assume that what happened in the past will repeat itself in the future.

• True

• False

We use long-term forecast to make the decisions relating to

• location

• new product

• capacity

• cost control

Answer explanation

Long-term forecast, used for location, capacity, and new product decisions, require techniques with long-term horizons

while short-term forecasts such as those for production and inventory control, labor levels and cost controls, can rely more on the recent history.