Operations Now Supply Chain Profitability and Performance 3rd Edition By Byron J.Finch -Test Bank

Operations Now Supply Chain Profitability and Performance 3rd Edition By Byron J.Finch -Test Bank

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Student: ___________________________________________________________________________
1. Planning benefits have a direct impact on profit margin and return on assets.
True False

2. All plans have a direct impact on net income through net sales.
True False

3. The minimum-planning horizon is determined by the lead-time associated with obtaining resources necessary to meet objectives.
True False

4. There is no single planning horizon for a business.
True False

5. More changes in the service sector are sure to come as a result of product innovation and service obsolescence.
True False

6. Consumer services have short life cycles, and consumer products have very long ones.
True False

7. When using causal forecasting models, the appearances of a relationship between demand and an external variable may be due to correlation.
True False

8. In some cases, random fluctuation can be significant enough to make it difficult to see trend or seasonality.
True False

9. In simple exponential smoothing, if the alpha was one, the forecast would be equal to the last period’s forecast.
True False

10. Which of the following statements is NOT true about the financial benefits of effective planning?
A. Planning benefits have a direct impact on profit margin and return on assets
B. All plans have a direct impact of net income though net sales
C. Plans related to resources that are used to create value provide a way to improve the reliability of obtaining those resources
D. An advance plan to carry a new item has the potential to reduce cost and increase net sales, yielding a substantial boost to profit margin.
E. All of the above are true.