Questions and Answers
In collaborative demand management, communicating demand may involve which of the following?
If a product has shifted and now has high market share but low market growth, what should be the new manufacturing, supply chain, and marketing strategies?
"A strategic decision, based on competition, perceived value, and brand identity." This describes which component of a modern marketing strategy?
"A period marked by high costs and low sales." This phrase bestdescribes what phase of the product life cycle?
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Which of the following would promote proper implementation of demand plans and reduce demand variability?
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Which of the following would best achieve the goals of improving forecast accuracy, reducing the frequency of supply-demand mismatches, and minimizing the non-selling time of headquarters sales staff?
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Which of the following activities is a component of demand planning?
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During which phase of the POCA model does a demand manager lead efforts to respond to variances from the plan and address root causes of the variances?
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Which of the following would promote accuracy and efficiency in the demand management process?
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In a customer-driven marketing strategy, which of the following must include getting information about the product to the consumer and giving the consumer a sense of being listened to?
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An organization launched a product that failed to get to the growth stage. They want to phase the product out as soon as possible. How soon could they discontinue the services related to this product, assuming the services earn them no revenue?
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Which of the following demand management techniques is being employed when an organization keeps a planned new version of its software system secret until after the busiest shopping season is over?
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Which of the following is a best practice for the creation of demand plans?
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In order to provide the desired level of customer service but remain profitable, a retailer needs to avoid carrying unnecessarily high levels of inventory but must be able to respond rapidly to changes in demand and avoid stockouts. What organizational strategy linking to demand management would be the best for this retailer?
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What is the biggest risk of signing a long-term supply contract to buy regular amounts of a subcomponent to get a significant price reduction?
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The manufacturer of a formerly popular kitchen appliance has decided to redesign and rebrand the product in an effort to reach new, younger consumers. Which of the following functions would the marketing department be primarily responsible for in this effort?
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When the demand manager serves as a communications focal point, who is he or she likely to communicate with regarding changes in tactics needed to meet demand or business objectives?
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Which of the following would best reveal a situation in which salespersons changed demand plan numbers to deliberately understate demand just to make their next quarter's sales goals easier to meet?
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What is a common method of aggregating products for demand planning purposes?
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"Customer care should, at this stage, promote strong brand identity and development of lifetime customers." This sentence best describes what phase of the product life cycle?
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Study Notes
Collaborative Demand Management
- Involves effective communication of demand across various stakeholders.
- Key strategies include sharing accurate forecasts and market insights to align supply and demand.
Manufacturing and Marketing Strategies
- For products with high market share but low growth, shift to cost leadership and efficiency.
- Focus manufacturing on streamlining processes, the supply chain should prioritize reliability, and marketing must leverage existing brand equity.
Modern Marketing Strategy Component
- Strategic decision-making shaped by competition, perceived value, and brand identity is critical for positioning.
Product Life Cycle Phase
- The period characterized by high costs and low sales signifies the "Introduction Phase."
- Markets during this phase may be unsteady, requiring careful investment management.
Demand Plan Implementation
- Promoting collaboration and communication across departments enhances proper execution of demand plans.
- Techniques like regular check-ins and aligned objectives help reduce variability.
Forecast Accuracy and Supply-Demand Mismatch
- Utilizing predictive analytics and software tools significantly improves forecast accuracy, and ensures better alignment between supply and demand.
Demand Planning Activities
- Essential components include data analysis, market research, and collaborative forecasting with sales teams.
POCA Model Phase
- A demand manager addresses variances during the "Control" phase by investigating root causes and implementing corrective measures.
Demand Management Process Efficiency
- Accuracy and efficiency can be promoted by adopting advanced software tools and streamlined data sharing practices.
Customer-Driven Marketing Strategy
- Engaging consumers through feedback mechanisms and comprehensive marketing communication fosters a sense of inclusivity and enhances product awareness.
Phasing Out a Non-Growth Product
- Organizations can discontinue services related to a poorly performing product immediately if they do not contribute to revenue.
Demand Management Techniques
- Keeping product updates secret until peak seasons are over exemplifies strategic demand management to mitigate risks of overstocking.
Best Practices for Demand Plans
- Continuous collaboration across different departments is vital for developing accurate and actionable demand plans.
Retailer Strategy for Inventory Management
- A just-in-time inventory strategy balances customer service needs with profit margins by avoiding excessive stock and minimizing stockouts.
Supply Contract Risks
- Long-term contracts may pose the risk of market changes where price reductions could lead to losses if demand declines or costs increase unexpectedly.
Redesign and Rebranding Responsibility
- The marketing department leads efforts in communications and outreach strategies to attract new consumer demographics through targeted campaigns.
Demand Manager Communication
- Demand managers are crucial communication links with sales teams and upper management regarding tactical adjustments to meet dynamic demand.
Revealing Misrepresentation in Sales Plans
- An internal audit may uncover intentional changes in demand plan numbers by sales personnel to achieve easier sales targets.
Product Aggregation Method
- Aggregating products by market segments or customer groups aids in predictive demand planning and resource allocation.
Customer Care During Product Life Cycle
- Strong brand identity development and customer loyalty strategies are critical during the "Maturity Phase" of the product life cycle to maintain market share.
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Description
Demand Management
