NO.1 The primary task of demand management in an assemble-to-order environment is to define
the:
A. customer's order in terms of specific components and options.
B. raw materials required to complete the customer's order.
C. availability of inventory to meet the customer's order.
D. customer's order in terms of product families.
Answer: A
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NO.2 Which of the following actions would most likely lead to an achievable master production
schedule?
A. Minimizing changes in periods before the demand time fence
B. Keeping safety stock for key subassemblies
C. Limiting changes in periods after the planning time fence
D. Committing to customer requested shipment dates
Answer: A
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NO.3 In which of the following environments does demand change from dependent to independent
at the raw material level?
A. Finish-to-order
B. Make-to-order
C. Assemble-to-order
D. Make-to-stock
Answer: B
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NO.4 Which of the following statements about both econometric models and market research is
true?
A. They are examples of intrinsic forecasting techniques.
B. They are useful in forecasting at the stockkeeping unit level.
C. They are useful in aggregate planning.
D. They can be used in place of adaptive smoothing.
Answer: C
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NO.5 Which of the following objectives is a critical performance measurement in distribution network
logistics?
A. Increasing the service level
B. Increasing cash-to-cash cycle time
C. Increasing inventory days of supply
D. Decreasing inventory turnover
Answer: A
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NO.6 Which of the following items is required for making realistic customer promises?
A. Feasible master schedules
B. Procedures for managing abnormal demand
C. Finished-goods safety stock
D. A sales and operations planning process
Answer: A
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NO.7 Which of the following types of activities links the marketplace, sister plants, warehouses, and
distribution channels?
A. Forecast management
B. Resource management
C. Demand management
D. Sales management
Answer: C
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NO.8 Which of the following criteria is used to determine safety stock in a distribution center?
A. Economic order quantity
B. Seasonal index value
C. Alpha factor level
D. Probability of stocking out
Answer: D
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