LSCM 3960 CH 7 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
outbououtbound-to-customer logistics systems - Answers The processes, systems, and capabilities
that enhance an organization's ability to serve its customers.
inbound-to-operations logistics systems - Answers The activities and processes that precede and
facilitate value-adding activities such as procurement, manufacturing, and assembly.
materials management (and physical supply) - Answers The movements and storage functions
associated with supplying goods to a firm.
Demand Management - Answers Focused efforts to estimate and manage customers' demand,
with the intention of using this information to shape operating decisions.
External balancing methods - Answers Methods that are used in an attempt to change the manner in
which customers order in an attempt to balance the supply-demand gap.
Internal balancing Methods - Answers Methods that utilize an organization's internal processes to
manage the supply-demand gap.
Forecasting - Answers Estimation of future phenomena, such as customer demand, transit times,
seasonal usage of product, etc. Forecasts are used for long-term, mid-range, and short-term
purposes.
Independent Demand - Answers The demand for a primary item
Dependent Demand - Answers Demand that is directly influenced by the demand for the
independent item.
Base Demand - Answers The demand for independent demand items.
Random Variation - Answers A type of demand fluctuation that cannot be anticipated and is usually
the cause to hold safety stocks to avoid stockouts.
Trend - Answers The gradual increase or decrease in demand over time for an organization.
Simple Moving Average - Answers This method simply averages a predetermined number of periods
and uses this average as the demand for the next period. Each time the average is computed, the
oldest demand is dropped and the most recent demand is included.
Bias - Answers A measure of how accurate a forecast is compared to actual demand. A positive bias
means that the demand was higher than forecast during the forecast period, resulting in stockouts; a
negative bias means the demand was lower than the forecast, resulting in excess inventories.
Weighted Moving Average - Answers A method that assigns a weight to each previous period with
higher weights usually given to more recent demand. The weights must equal to one.
Exponential Smoothing - Answers Exponential smoothing needs three types of data: an average of
previous demand, the most recent demand, and a smoothing constant. The smoothing constant must
be between 0 and 1. Using a higher constant assumes that the most recent demand is a better
predictor of future demand.
sales and operations planning process (S&OP) - Answers A five-step process that can be used to arrive
at a consensus forecast.
collaborative planning, forecasting and replenishment (CPFR) - Answers Seeks to enhance vendor-
managed inventory and continuous replenishment through a more proactive means of information
sharing between supply chain partners. Supply chain partners collaborate on things like sales
planning, promotions, forecasts, delivery means, and inventory levels
throughout the supply chain to improve service and to drive revenue growth. Communication in CPFR
encompasses the
gamut from web-based systems to periodic face-to-face planning sessions.
collaborative transportation management (CTM) - Answers A cooperative approach to managing
transportation services among several organizations in a supply chain to improve service and reduce
costs.
Channel of Distribution - Answers A means by which a manufacturer distributes products from the
plant to the ultimate user, including warehouses, brokers, wholesalers, retailers, etc.
Logistics Channel - Answers The network of intermediaries engaged in transfer, storage,
handling, and communications functions that contribute to the efficient flow of goods.
Marketing Channel - Answers The means by which necessary transactional elements are
managed (for example, customer orders, billing, accounts receivable, etc.).
4 functions of Logistics Channel - Answers sorting out, accumulating, allocating, and assorting
, integrated fulfillment - Answers Many retailers today maintain both a "bricks-and-mortar" and
"clicks-and-mortar" presence to the consumer. That is, retailers have both retail stores as well as
Internet sites where
consumers can buy direct. Integrated fulfillment means the retailer operates one distribution network
to service both of
these channels.
Dedicated Fulfillment - Answers An order filling option for the retailer that desires to have both a
store and an Internet presence. Dedicated fulfillment achieves the same delivery goals as integrated
fulfillment but with two separate distribution networks. Having a separate distribution network for
store delivery and consumer delivery eliminates most of the disadvantages of integrated fulfillment.
Outsourced fulfillment - Answers A type of fulfillment in which another firm will perform the
fulfillment.
Drop-Shipped Fulfillment - Answers A model in which the manufacturer delivers its product directly
to a retailer's stores, bypassing the retailer's distribution network.
Store Fulfillment - Answers In this model of order fulfillment, the order is placed through
the Internet site. The order is sent to the nearest retail store where it is picked and put aside for the
customer to pick up.
This works well for large electronic appliances.
Flow-through fulfillment - Answers An order fulfillment method that is very similar to store
fulfillment. The main difference between the two is that in flow-through fulfillment the product is
picked and packed at the retailer's distribution center and then sent to the store for customer
pickup.nd-to-customer logistics systems - Answers The processes, systems, and capabilities that
enhance an organization's ability to serve its customers. inbound-to-operations logistics systems -
Answers The activities and processes that precede and facilitate value-adding activities such as
procurement, manufacturing, and assembly. materials management (and physical supply) - Answers
The movements and storage functions associated with supplying goods to a firm. Demand
Management - Answers Focused efforts to estimate and manage customers' demand, with the
intention of using this information to shape operating decisions. External balancing methods -
Answers Methods that are used in an attempt to change the manner in which customers order in an
attempt to balance the supply-demand gap. Internal balancing Methods - Answers Methods that
utilize an organization's internal processes to manage the supply-demand gap. Forecasting - Answers
Estimation of future phenomena, such as customer demand, transit times, seasonal usage of product,
etc. Forecasts are used for long-term, mid-range, and short-term purposes. Independent Demand -
Answers The demand for a primary item Dependent Demand - Answers Demand that is directly
outbound-to-customer logistics systems - Answers The processes, systems, and capabilities that
enhance an organization's ability to serve its customers.
inbound-to-operations logistics systems - Answers The activities and processes that precede and
facilitate value-adding activities such as procurement, manufacturing, and assembly.
materials management (and physical supply) - Answers The movements and storage functions
associated with supplying goods to a firm.
Demand Management - Answers Focused efforts to estimate and manage customers' demand,
with the intention of using this information to shape operating decisions.
External balancing methods - Answers Methods that are used in an attempt to change the manner in
which customers order in an attempt to balance the supply-demand gap.
Internal balancing Methods - Answers Methods that utilize an organization's internal processes to
manage the supply-demand gap.
Forecasting - Answers Estimation of future phenomena, such as customer demand, transit times,
seasonal usage of product, etc. Forecasts are used for long-term, mid-range, and short-term
purposes.
Independent Demand - Answers The demand for a primary item
Dependent Demand - Answers Demand that is directly influenced by the demand for the
independent item.
Base Demand - Answers The demand for independent demand items.
Random Variation - Answers A type of demand fluctuation that cannot be anticipated and is usually
the cause to hold safety stocks to avoid stockouts.
Trend - Answers The gradual increase or decrease in demand over time for an organization.
outbououtbound-to-customer logistics systems - Answers The processes, systems, and capabilities
that enhance an organization's ability to serve its customers.
inbound-to-operations logistics systems - Answers The activities and processes that precede and
facilitate value-adding activities such as procurement, manufacturing, and assembly.
materials management (and physical supply) - Answers The movements and storage functions
associated with supplying goods to a firm.
Demand Management - Answers Focused efforts to estimate and manage customers' demand,
with the intention of using this information to shape operating decisions.
External balancing methods - Answers Methods that are used in an attempt to change the manner in
which customers order in an attempt to balance the supply-demand gap.
Internal balancing Methods - Answers Methods that utilize an organization's internal processes to
manage the supply-demand gap.
Forecasting - Answers Estimation of future phenomena, such as customer demand, transit times,
seasonal usage of product, etc. Forecasts are used for long-term, mid-range, and short-term
purposes.
Independent Demand - Answers The demand for a primary item
Dependent Demand - Answers Demand that is directly influenced by the demand for the
independent item.
Base Demand - Answers The demand for independent demand items.
Random Variation - Answers A type of demand fluctuation that cannot be anticipated and is usually
the cause to hold safety stocks to avoid stockouts.
Trend - Answers The gradual increase or decrease in demand over time for an organization.
Simple Moving Average - Answers This method simply averages a predetermined number of periods
and uses this average as the demand for the next period. Each time the average is computed, the
oldest demand is dropped and the most recent demand is included.
Bias - Answers A measure of how accurate a forecast is compared to actual demand. A positive bias
means that the demand was higher than forecast during the forecast period, resulting in stockouts; a
negative bias means the demand was lower than the forecast, resulting in excess inventories.
Weighted Moving Average - Answers A method that assigns a weight to each previous period with
higher weights usually given to more recent demand. The weights must equal to one.
Exponential Smoothing - Answers Exponential smoothing needs three types of data: an average of
previous demand, the most recent demand, and a smoothing constant. The smoothing constant must
be between 0 and 1. Using a higher constant assumes that the most recent demand is a better
predictor of future demand.
sales and operations planning process (S&OP) - Answers A five-step process that can be used to arrive
at a consensus forecast.
collaborative planning, forecasting and replenishment (CPFR) - Answers Seeks to enhance vendor-
managed inventory and continuous replenishment through a more proactive means of information
sharing between supply chain partners. Supply chain partners collaborate on things like sales
planning, promotions, forecasts, delivery means, and inventory levels
throughout the supply chain to improve service and to drive revenue growth. Communication in CPFR
encompasses the
gamut from web-based systems to periodic face-to-face planning sessions.
collaborative transportation management (CTM) - Answers A cooperative approach to managing
transportation services among several organizations in a supply chain to improve service and reduce
costs.
Channel of Distribution - Answers A means by which a manufacturer distributes products from the
plant to the ultimate user, including warehouses, brokers, wholesalers, retailers, etc.
Logistics Channel - Answers The network of intermediaries engaged in transfer, storage,
handling, and communications functions that contribute to the efficient flow of goods.
Marketing Channel - Answers The means by which necessary transactional elements are
managed (for example, customer orders, billing, accounts receivable, etc.).
4 functions of Logistics Channel - Answers sorting out, accumulating, allocating, and assorting
, integrated fulfillment - Answers Many retailers today maintain both a "bricks-and-mortar" and
"clicks-and-mortar" presence to the consumer. That is, retailers have both retail stores as well as
Internet sites where
consumers can buy direct. Integrated fulfillment means the retailer operates one distribution network
to service both of
these channels.
Dedicated Fulfillment - Answers An order filling option for the retailer that desires to have both a
store and an Internet presence. Dedicated fulfillment achieves the same delivery goals as integrated
fulfillment but with two separate distribution networks. Having a separate distribution network for
store delivery and consumer delivery eliminates most of the disadvantages of integrated fulfillment.
Outsourced fulfillment - Answers A type of fulfillment in which another firm will perform the
fulfillment.
Drop-Shipped Fulfillment - Answers A model in which the manufacturer delivers its product directly
to a retailer's stores, bypassing the retailer's distribution network.
Store Fulfillment - Answers In this model of order fulfillment, the order is placed through
the Internet site. The order is sent to the nearest retail store where it is picked and put aside for the
customer to pick up.
This works well for large electronic appliances.
Flow-through fulfillment - Answers An order fulfillment method that is very similar to store
fulfillment. The main difference between the two is that in flow-through fulfillment the product is
picked and packed at the retailer's distribution center and then sent to the store for customer
pickup.nd-to-customer logistics systems - Answers The processes, systems, and capabilities that
enhance an organization's ability to serve its customers. inbound-to-operations logistics systems -
Answers The activities and processes that precede and facilitate value-adding activities such as
procurement, manufacturing, and assembly. materials management (and physical supply) - Answers
The movements and storage functions associated with supplying goods to a firm. Demand
Management - Answers Focused efforts to estimate and manage customers' demand, with the
intention of using this information to shape operating decisions. External balancing methods -
Answers Methods that are used in an attempt to change the manner in which customers order in an
attempt to balance the supply-demand gap. Internal balancing Methods - Answers Methods that
utilize an organization's internal processes to manage the supply-demand gap. Forecasting - Answers
Estimation of future phenomena, such as customer demand, transit times, seasonal usage of product,
etc. Forecasts are used for long-term, mid-range, and short-term purposes. Independent Demand -
Answers The demand for a primary item Dependent Demand - Answers Demand that is directly
outbound-to-customer logistics systems - Answers The processes, systems, and capabilities that
enhance an organization's ability to serve its customers.
inbound-to-operations logistics systems - Answers The activities and processes that precede and
facilitate value-adding activities such as procurement, manufacturing, and assembly.
materials management (and physical supply) - Answers The movements and storage functions
associated with supplying goods to a firm.
Demand Management - Answers Focused efforts to estimate and manage customers' demand,
with the intention of using this information to shape operating decisions.
External balancing methods - Answers Methods that are used in an attempt to change the manner in
which customers order in an attempt to balance the supply-demand gap.
Internal balancing Methods - Answers Methods that utilize an organization's internal processes to
manage the supply-demand gap.
Forecasting - Answers Estimation of future phenomena, such as customer demand, transit times,
seasonal usage of product, etc. Forecasts are used for long-term, mid-range, and short-term
purposes.
Independent Demand - Answers The demand for a primary item
Dependent Demand - Answers Demand that is directly influenced by the demand for the
independent item.
Base Demand - Answers The demand for independent demand items.
Random Variation - Answers A type of demand fluctuation that cannot be anticipated and is usually
the cause to hold safety stocks to avoid stockouts.
Trend - Answers The gradual increase or decrease in demand over time for an organization.
