SCM 303 - Ch 8 Exam 3

reducing the time to make accurate commitments to customers

Advanced planning and scheduling (APS) facilitates improvements in customer service by ______. - reducing the time to make accurate commitments to customers - reducing inventory levels - improving resource utilization - none of these

production flexibility since detailed and accurate forecasting is not of critical importance

In a situation where there are low economies of scale and a long response time, the supply chain strategy should focus on ______. - an accurate short-term forecast with strong tactics and less consideration of history - production flexibility since detailed and accurate forecasting is not of critical importance - responsiveness at the expense of forecast accuracy - both forecast accuracy and responsiveness because they are equally important

could decrease future sales

Promotions such as "buy one get one free" are somewhat risky in terms of forecasting. Why? - increases likelihood of competition - could decrease future sales - decreases perceived value of regular-priced items - gives the impression of a struggling company

is the computational engine of the supply chain planning system

The optimization module of an advanced planning and scheduling (APS) system ______. - develops the requirement projections for the planning horizon - defines and coordinates supply chain system resources and constraints - is the computational engine of the supply chain planning system - specifies the resource assignments and communicates them to the ERP system

replenish

What does the R stand for in CPFR? - repeat - replenish - re-evaluate - re-design

demand planning

What is typically the first planning stage of the APS technology tool? - supply planning - demand planning - financial planning - factory planning and demand fulfillment

both determine what is best for the customer and identify and calculate the cost of strategic options are correct

When planning for an increase in production, APS helps to ______. - determine what is best for the customer - identify and calculate the cost of strategic options - determine what is best for suppliers - both determine what is best for the customer and identify and calculate the cost of strategic options are correct

the S&OP process eliminates the need to have finished goods inventory

Which of the following is not a benefit of sales and operations planning? - the S&OP process eliminates the need to have finished goods inventory - the S&OP process results in better customer service - the S&OP process provides better visibility into future capacity problems - the S&OP process provides a single set of numbers to run the business

improved forecast accuracy

Which of the following is not a benefit that is offered by advanced planning and scheduling (APS)? - improved customer service with lower inventory - improved forecast accuracy - better utilization of existing capacity - better relationships with suppliers

handle time fences

Which of the following is not a demand planning requirement? - provides reporting analysis and other metrics - allow exception alerts and resolution - handle time fences - track promotion activity

competition

Which of the following is not a key component of forecast accuracy? - technique - support system - knowledge - competition

aid employees in understanding production purposes

Which of the following is not a purpose of APS planning charts? - assist planners with evaluating cost procurement - identify various stages within the supply chain - aid employees in understanding production purposes - facilitate decision making for optimal results

precise demands by key customers

Which of the following is not a reason for increased importance of S&OP? - increased capacity - lesser variance of products - strategies are simplified - precise demands by key customers

competing

Which of the following is not a stage in the S&OP maturity model? - reacting - anticipating - competing - orchestrating

amount

Which of the following is not a theoretical factor of forecasting? - amount - trend - cyclical - seasonal

financial flow

Which of the following is not an APS application issue? - reliable, consistent forecast - data integrity - supply chain and application education - financial flow

past inventories

Which of the following is not input needed for an APS? - current inventories - past inventories - work already in progress - time-phased demand plan

it is good for low-volume items

Which of the following is not true about CPFR? - it can make products more consistent - it is time consuming - it aids in forecasting accuracy - it is good for low-volume items

The accuracy of forecasting has improved over time. Forecasting becomes easier when the specifications are more detailed.

Which of the following is true about forecasting errors? (Select all that apply) - the accuracy of forecasting has improved over time - forecasting becomes easier when the specifications are more detailed - forecasting becomes more difficult at a reduced level of aggregation

transportation planning

Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints? - supply chain planning - factory planning - distribution planning - transportation planning

assemble to order (ATO)

a system that produces standard modules to be modified and/or combined into a customizable product

inventory development

activity can be completed independently by individual supply chain functions, in an integrated manner by supply chain overall, or in a coordinated manner by the entire firm (referred to as S&OP)

exponential smoothing

basis the estimate of future sales on the weighted average of the previous demand and forecast levels

logistics planning

coordinates transportation, warehousing, and inventory within the firm and between supply chain partners

resource optimization

is the computational engine or "black box" of the supply chain planning system; uses a combination of mathematical programming and heuristics to determine how to most effectively meet customer requirements while optimizing resource utilization

make to order (MTO)

products that have similar designs but are customized during production

adaptive smoothing

provides a regular review of the alpha factor fit. the alpha value is reviewed at the conclusion of each forecast period to determine the exact value that would have resulted in a perfect forecast for the previous period

supply chain visibility

regarding location and status of supply chain inventory and resources; not only being able to track inventory and resources, but also that information regarding available resources can be effectively evaluated and managed

bolt-on or best-of-breed

seeks to identify the best supply chain planning system for the firm on the basis of features and functionality and then attach it to the firm's ERP system; result is a planing system that better meets the firm's specific requirements of offers improved performance but at a probable cost of reduced integration

resource allocation

specifies the resource assignments and communicates them to the ERP system to initiate proper transactions; results include requirements for procurement, production, storage, and transport

demand planning

the forecasts are the projections of monthly, weekly, or daily demand that determine productions and inventory requirements; integrates historically based forecasts with other information regarding events that could influence future sales activity (i.e. promotion plans, pricing changes, and new product introductions)

production planning

uses the statement of requirements from demand management in conjunction with manufacturing resources and constraints to develop a workable manufacturing plan; results in a time-sequenced plan to manufacture the correct items efficiently while operating within facility, equipment and labor constraints

forecast

what is projected to be sold, when, and where

extended exponential smoothing

incorporates the influence of trend and seasonality factors when specific values for these components can be identified

supply chain planning

increasing in frequency and scope; the process of developing various resource plans to support the efficient and effective production of goods and services

advanced planning and scheduling (APS)

is a network including plants, warehouses, and customers as well as transportation flows. this network reflects the resource status and allocation at a point in time, for example, on the first day of the month

collaborative planning, forecasting, and replenishment (CPFR)

is a process initiated by the consumer products industry to achieve such coordination; coordinates the requirements planning process between supply chain partners for demand creation and demand fulfillment activities

sales and operations planning (S&OP)

is a process that coordinates demand and supply plans across the organization; include information sharing and accountability to systematically develop a common and consistent plan