25. The demand for bread in Ahoma City ranges from 100 to 120 tons per day, ever

Question

25. The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.

a. static demand

b. overfull demand

c. unwholesome demand

d. dynamic demand

26. Which of the following is not a basic function of the Supply Chain Operations Reference (SCOR) model?

a. source

b. make

c. deliver

d. objectify

e. control

27. According to your textbook, which one of the following statements best reflects

about conditions associated with vendor-managed inventory (VMI)?

a. VMI is a form of outsourcing.

b. VMI often increases the bullwhip effect.

c. VMI is used only in responsive supply chains.

d. VMI is identical to contract manufacturing.

e. VMI is used to manage WIP inventories under special conditions.

Explanation / Answer

25. a. static demand

The demand fluctuates on a daily basis within a very narrow range and the demand is easily satisfied, therefore it is categorized as static demand.

26. d. Objectify

Basic functions of SCOR model are: Plan, source, make, deliver and return.

27. a. VMI is a form of outsourcing

In VMI, inventory is managed by vendor, therefore, risk and control is with vendor, which is equivalent to outsourcing.

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