KARPAGAM COLLEGE OF ENGINEERING

(Autonomous)
COIMBATORE-32
(Applicable to the students admitted from the academic year 2009-2010 and onwards)
Degree: / Branch: MBA /Business Administration
Semester Year: Semester III / II Year
Subject Code & Title: 09BAP02 SUPPLY CHAIN MANAGEMENT
(Question Bank)
UNIT IV
PART A (2 Marks)
1. Define Demand forecasting
Demand forecasting is the activity of estimating the quantity of a product or service
that consumers will purchase. Demand forecasting involves techniques including
both informal methods, such as educated guesses, and quantitative methods, such as
the use of historical sales data or current data from test markets.
2. Define Qualitative forecasting
Qualitative forecasting techniques are subjective, based on the opinion and
judgment of consumers, experts; they are appropriate when past data are not
available. They are usually applied to intermediate- or long-range decisions.
3. What are the basic approaches of demand forecasting?
Understand the Objective of Forecasting
Integrate Demand Planning and Forecasting Throughout the Supply Chain
Understand and Identify Customer Segments
Identify Major Factors That Influence the Demand Forecast
Determine the Appropriate Forecasting Technique
Established Performances and Error Measures for the Forecast
4. Define aggregate planning
Aggregate planning is an operational activity that does an aggregate plan for the
production process, in advance of 2 to 18 months, to give an idea to management as
to what quantity of materials and other resources are to be procured and when, so
that the total cost of operations of the organization is kept to the minimum over that
period.
5. What are all the information is used to create an aggregate plan?
1. Information about the resources and the facilities available.
2. Demand forecast for the period for which the planning has to be
done.
3. Cost of various alternatives and resources. This includes cost of
holding inventory, ordering cost, cost of production through various
production alternatives like subcontracting, backordering and
overtime.
4. Organizational policies regarding the usage of above alternatives.
6. Objectives of aggregate planning
1. To minimize the investments in the various inventories.
2. To minimize the total cost over the planning horizon.
3. To maximize the customer service.
4. To minimize the changes in the workforce levels.

5. To minimize the changes in the production rates.

6. To maximize the utilization of the plant and the various equipments.
7. Define predictable variability
It is the change in demand that can be forecasted.
8. What is trade promotion?
A marketing technique aimed at increasing demand for products in retail stores
9. Define Market growth
Particular products or services increased demand, tracked over time. If
consumers have no high demand, growth is slow or stagnant. If consumers
develop product or service loyalty at a specific price level, growth increases. A
new technology might initially only be marketable to a small set of consumers at a
particular price. But, as the price decreases, demand likely increases as more and
more consumers find increasing use in every day life.
10. Define Stealing share
11. Define forward buying
Purchasing retail inventory in quantities exceeding current demand,
usually when manufacturers, or other suppliers, offer temporary discounts. When
the promotion period expires, the retailer can then sell the remaining inventory to
consumers at regular prices, earning a bigger margin of profit. In some cases, an
authorized dealer who receives a substantial discount might resell the merchandise
to other retailers.
12. What do you mean by demand of ?
Demand is an economic principle that describes a consumer's desire, willingness
and ability to pay a price for a specific good or service. Demand refers to how much
(quantity) of a product or service is desired by buyers.
13. Define safety inventory
A store of goods made available when the variables of your operation impede
production. Safety inventory is a type of buffer inventory.
14. What is a product?
A product is anything that can be offered to a market that might satisfy a want or
need
15. Define Inventory fill rate
Inventory fill rate is the percentage of customers that are satisfied or can be satisfied
with the inventory at hand. It is a measure of the ability of a company to satisfy the
demand for its products with its current products
PART B (15 Marks)
1. Define forecasting method and its classification
2. Define aggregate planning and its strategies
3. Define Managing capacity and its types
4. Elaborate market growth, stealing share forward buying
5. Define short term discounting trade promotion
6. Define measuring product availability and its types

7. Elaborate-safety Inventory
8. What are supply chain contract and their impact on profitability?
9. What are the factors affecting optimal level of product availability?
10. What are the managerial levels to improve supply chain profitability?
11. Discuss the role of Forecasting in a supply chain
12. What is the basic approach to demand forecasting?
13. Discuss the role of aggregate planning in the supply chain
14. Discuss the implementing aggregate planning in practice
15. How does the availability of subcontracting impact the aggregate planning
problems?

Prof.T.A.Venkatachalam/Dean/MBA