Chapter 9 Planning Supply and Demand in the Supply Chain: Managing Predictable Variability True/False 1
Predictable variability is change in demand that cannot be forecasted
Answer: False Difficulty: Easy 2
Faced with predictable variability of demand, a company’s goal is to respond in a manner that maximizes profitability
Answer: True Difficulty: Easy 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 Difficulty: Easy 4
The disadvantage of carrying enough manufacturing capacity to meet demand in any period is that much of the expensive capacity would go unused during most months when demand was lower
Answer: True Difficulty: Easy 5
The advan