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Global Supply Chain Management; Chapter summary
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Summary Global Supply Chain Management VU IBA
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TRL3709 Prescribed Book - Supply Chain Management: Strategy, Planning, and Operation, Chopra, S. 7th Edition
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Supply Chain Management, 6e, Global Edition (Chopra/Meindl)Chapter 9 Sales and Operations Planning: Planning Supply and Demand in a Supply
Chain
9.1 True/False Questions
1) Predictable variability is change in demand that cannot be forecasted.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
2) Faced with predictable variability of demand, a company's goal is to respond in a manner that
maximizes profitability.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
3) The advantage of carrying enough manufacturing capacity to meet demand in any period is
very low inventory costs, because no inventory needs to be carried from period to period.
Answer: TRUE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
4) The disadvantage of building up inventory during the off season to keep production stable
year round is the expensive capacity that would go unused during most months when demand
was lower.
Answer: FALSE
Diff: 1
Topic: 9.1 Responding to Predictable Variability in the Supply Chain
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
1
Copyright © 2016 Pearson Education, Ltd.
,5) A firm can vary supply of product by controlling production capacity and inventory.
Answer: TRUE
Diff: 1
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
6) A firm that uses flexible work hours from the workforce to manage capacity to better meet
demand is using a seasonal workforce.
Answer: FALSE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
7) Scheduling the workforce so that the available capacity better matches demand is using time
flexibility from the workforce.
Answer: TRUE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
8) The use of a part-time workforce to increase the capacity flexibility by enabling the firm to
have more people at work during peak periods is designing product flexibility into the production
processes.
Answer: FALSE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
9) A firm that uses a temporary workforce during the peak season to increase capacity to match
demand is using a seasonal workforce.
Answer: TRUE
Diff: 1
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
2
Copyright © 2016 Pearson Education, Ltd.
, 10) The use of dual facilities to manage capacity may be hard to sustain if the labor market is
tight.
Answer: FALSE
Diff: 3
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
11) A firm that builds dedicated facilities to produce a relatively stable output of products over
time in a very efficient manner and purchases peak production capability from other companies
is using subcontracting.
Answer: FALSE
Diff: 3
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
12) The use of a seasonal workforce requires that the workforce be multi-skilled and easily adapt
to being moved from line to line.
Answer: TRUE
Diff: 2
Topic: 9.2 Managing Supply
AACSB: Application of knowledge
Objective: LO 9.1: Manage supply to improve synchronization in a supply chain in the face of
predictable variability.
13) Pricing decisions based only on revenue considerations often result in an increase in overall
profitability.
Answer: FALSE
Diff: 2
Topic: 9.3 Managing Demand
AACSB: Application of knowledge
Objective: LO 9.2: Manage demand to improve synchronization in a supply chain in the face of
predictable sustainability.
14) When performing aggregate planning, the goal of all firms in the supply chain should be to
maximize individual firm profits.
Answer: FALSE
Diff: 2
Topic: 9.3 Managing Demand
AACSB: Application of knowledge
Objective: LO 9.2: Manage demand to improve synchronization in a supply chain in the face of
predictable sustainability.
3
Copyright © 2016 Pearson Education, Ltd.
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