Intro to Supply Chain Management Exam 1
The planning function that determines the need to replenish finished product inventory at branch warehouses, when there are multiple warehouses in the network, is called what?
Distribution Requirement Planning (DRP)
Which forecasting technique uses mathematical models and historical data to make forecasts?
quantitative
https://imgur.com/a/jDXrzEt
https://imgur.com/a/jDXrzEt
Calculate the Mean Absolute Deviation (MAD) for the months of January through April using the following data: Month: JAN, FEB, MAR, APR Actual Sales: 500, 800, 1000, 900 Forecast: 400, 1000, 900, 1000
125
Which of the following is a Long-Range supply chain plan?
Aggregate Production Plan
Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage.
False
The most commonly used forecasting accuracy measures are Mean Absolute Deviation (MAD), Mean Multiple Regression (MMR), and Mean Absolute Percentage Error (MAPE)
False
Which of the following is NOT one of the ways that carrying too much inventory can become a significant liability?
Holding more inventory usually means that a company can provide a higher level of customer service.
Which of the following is NOT one of the advantages or Material Requirements Planning?
Ignores capacity. Focuses on what is needed and when, regarding capacity.
Which type of demand is forecasted?
Independent Demand
Companies establish Time Fences in order to?
Minimize the impact of changes and costly disruptions.
4 foundational areas of supply chain management
Operations Management, Supply Management, Logistics Management, and Integration
What are the differences between qualitative & quantitative forecasting techniques
Qualitative forecasting techniques are generally based on opinion, intuition or judgement - used when there is limited amounts of data to go off of. Quanititative forecasting techniques generally use historical demand data to project future demand. Qualitative forecasting is based on opinion and intuition to make forecasts. Quantitative forecasting uses mathematical models and historical data to make forecasts
If a supply chain is made up of the following companies , who is considered the second-tier supplier of the manufacturer Raw Material Supplier -> Intermediate Supplier -> Manufacturer -> Wholesale Customer -> Retail Customer
Raw Material Supplier
The lowest inventory level at which a new order must be placed to avoid a stockout is known as?
Reorder point
What is supply chain management
Supply Chain Management is the term that covers the whole system of production. From manufacturing, to the distribution of these goods, and then the receiving of these goods, Supply Chain Management encompasses the whole entire system of production in business, or in anything else.
Cause and Effect Forecast models use the historical relationship between an independent variable(s) and a dependent variable to predict the future values of the dependent variable.
True
It was intense global competition that led manufacturers to adopt Supply Chain Management & other practices such as Just-In-Time
True
Successful modern supply chain management typically includes the practice of
collaborating & sharing information between supply chain partners
Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competencies
false
Forecasts are more accurate the farther out into the future that you forecast.
false
The goal of supply chain management is to increase customer service while increasing inventory and reducing cost
false
The lowest inventory level at which a new order must be placed to avoid a stockout is known as the Replenishment Threshold
false
https://imgur.com/a/7taud4g
https://imgur.com/a/7taud4g
https://imgur.com/a/CrnJzuQ
https://imgur.com/a/CrnJzuQ
https://imgur.com/a/Wm25ChH
https://imgur.com/a/Wm25ChH
https://imgur.com/a/eSzHFK6
https://imgur.com/a/eSzHFK6
Which of the following terms used in MRP represents the parts demanded by a parent?
Component
Independent Demand is demand for an item that is directly related to other items or finished products, such as a component or material used in making a finished product.
False
The business model that consists of producing finished products on the basis of anticipated demand is
Make-to-Stock
Sales and Operations Planning (S&OP) is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage.
True
Supply Chain Planning is the element of Supply Chain Management responsible for determining how best to satisfy the requirements created by the Demand Plan.
True
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods
True
To determine the Reorder Point, calculate the demand during lead time.
True
Calculate the Mean Absolute Deviation (MAD) for the months of January through April using the following data: Month: JAN, FEB, MAR, APR Actual Sales: 1000, 1600, 2000, 1800 Forecast: 600, 2500, 1500, 2000
500
What is the term for the type of inventory system that issues an order whenever a withdrawal is made from inventory, and the replenishment order quantity is equal to the quantity withdrawn from inventory?
Base Stock Level System
Collaborative Planning, Forecasting, and Replenishment (CPFR) creates the bullwhip effect through the sharing of plans, forecasts, and delivery schedules in an effort to ensure a smooth flow of goods and services across a supply chain.
False
The Bullwhip Effect occurs because suppliers and manufacturers do not make enough inventory to satisfy demand
False
The process of converting a parent item's planned order releases into component gross requirements, is called?
MRP Explosion
To calculate the Economic Order Quantity, you need all of the following elements, EXCEPT?
Reorder point
Define Sales & Operation Planning
Sales & Operations Planning involved gathering all relevant data in supply & demand, and compiling it in a way that lets the management produce a competitive advantage in the industry. A process to develop tactical plans that provides management the ability to strategically direct the business to achieve a competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain.
Which of the following MRP terms represents a committed order awaiting delivery for a specific period?
Scheduled Receipt
Which of the following statements is true
Strategic partnerships are seen as one of the foundations of supply chain management
Which of the following is NOT an example of an ordering cost for products purchased from a supplier? The cost of handling the product The opportunity cost of not ordering from a least cost supplier The cost of transmitting the order The cost associated with processing the invoice The cost of receiving the product
The opportunity cost of not ordering from a least cost supplier
https://imgur.com/a/sOPb8eV
https://imgur.com/a/sOPb8eV
The goals of supply chain management are to
increase customer satisfaction while reducing inventory & operating expenses
As the supply chain continues to evolve it's critical for companies to
outsource their non-core competencies to trading partners that they can trust
Which one of the following is NOT one of the four reasons to hold inventory?
to avoid obsolescence
Which one of the following would be considered an inventory ordering cost?
transportation costs