week 10 tf
A home improvement store adds several workers to the garden center in the summer in order to meet the demands of do-it-yourselfers for their dazzling array of plants. Once gardening season is over, both the workers' jobs (and the plants they sold) will perish. The home improvement store is following an offloading strategy.
False
A naïve forecast for September sales of a product would be equal to the forecast for August.
False
A seasonal pattern in time series data is evident when the level of the variable of interest moves erratically up or down from one period to the next.
False
Buying advance tickets for the Giraffe Massacre concert on New Year's Eve saves the buyer one-tenth of one percent on the face value of the tickets. It would be wise to buy tickets well in advance of the concert date.
False
Compared to other levels of planning, detailed planning and control offers the greatest ability to adjust capacity.
False
Detailed planning and control is riskier than strategic planning.
False
Each entity in a supply chain should produce its own sales and operations plan independent of the other members in order to improve the overall cost performance in a supply chain.
False
Forecasts of individual products tend to be more accurate than forecasts of product families.
False
In a single-period inventory system, as the average demand rises, the standard deviation of demand falls.
False
Order quantity decisions are typically made in isolation from considerations of transportation, packaging, and material handling.
False
Qualitative forecasts are used when there is plenty of relevant data.
False
Retailers never need to hold dependent demand inventory items as hedge inventory.
False
The alternative production strategies of level, chase, or mixed that are available in top-down planning cannot be used in bottom-up planning.
False
The excess cost of an item is the profit you would have made on it.
False
The flexibility of inventory increases as materials move down the supply chain.
False
The restocking level increases as the service level falls.
False
The value of goods on a "per unit" basis upstream in a supply chain is greater than the value of those same goods downstream in a supply chain.
False
A company that orders at their economic order quantity should experience a decline in the number of orders per year as their order quantity increases if their annual demand stays constant.
True
A naïve forecast for September sales of a product would be equal to the sales in August.
True
A routine flight from LaGuardia Airport to Will Rogers Airport may have passengers that have paid radically different ticket prices. These prices fluctuate based on an approach called yield management.
True
A target service level is the point where the expected cost of a shortage equals the expected excess cost.
True
A time-series model uses a series of past data points to make the forecast.
True
At the beginning of the semester, you decide to devote 12 hours a week outside of class time to your operations management studies, regardless of scheduled tests, assignments, or project due dates. This is a level plan approach to your favorite course.
True
Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.
True
Companies do not plan to use safety stock.
True
Cycle stock can occur at more than one point in a supply chain
True
Cycles and random variations are both components of time series.
True
Decreases in the standard deviation of demand reduce the amount of safety stock that should be
True
Demand forecasts serve as inputs to financial, marketing, and personnel planning.
True
Forecasts are almost always wrong.
True
In order for the continuous review system to work, demand must be known and constant.
True
In order to find the lowest cost ordering policy in a quantity discount model, you always compute the EOQ and confirm whether this amount can be purchased for the lowest cost
True
In order to find the lowest cost ordering policy in a quantity discount model, you must compare the holding cost, ordering cost, and the price per unit for various order quantities.
True
Sales and operations planning across a supply chain is similar in nature to collaborative planning, forecasting, and replenishment.
True
Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.
True
Sales and operations planning should inform all members of the supply chain what to do and what not to do.
True
The Delphi method, panel consensus forecasting, and market surveys are all qualitative forecasting methods, but only market surveys do NOT use experts.
True
The greater the randomness in the model, the greater the number of periods that should be used in a moving average forecast.
True
The order quantity in a periodic review system rises as the on-hand inventory level falls.
True
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.
True
The sales force composite forecasting method relies on salespersons' estimates of expected sales.
True
Forecasts may be influenced by a product's position in its life cycle.
true
