41.Predictable variabilityis

a.change in demand that can be forecasted.

b.change in demand that cannot be forecasted.

c.change in demand that has been planned.

d.change in demand that has been scheduled.

e.all of the above

42.Which of the following isnota problem caused by products experiencing predictable variability of demand?

a.high levels ofstockoutsduring peak demand

b.high levels of excess inventory during periods of low demand

c.increased responsiveness of the supply chain

d.increased costs in the supply chain

e.decreased responsiveness of the supply chain

43.A firm can handle predictable variability by managing

a.supply using capacity, inventory, trade promotions, and backlogs.

b.supply using capacity, inventory, subcontracting, and backlogs.

c.demand using short-term price discounts and trade promotions.

d.a and c only

e.b and c only

44.Seasonal demand can be met by

a.maintaining enough manufacturing capacity to meet demand in any period.

b.building up inventory during the off season to meet demand during peak seasons.

c.offering a price promotion during periods of low demand to shift some of the demand into a slow period.

d.all of the above

e.a and b only

45.The advantage of maintaining enough manufacturing capacity to meet demand in any period is

a.very low inventory costs because inventory needs to be carried from period to period.

b.very low inventory costs because no inventory needs to be carried from period to period.

c.very high inventory costs because no inventory needs to be carried from period to period.

d.very high inventory costs because expensive capacity would go unused during most months when demand was lower.

e.none of the above

Answer: b