Test One Review Questions--Supply Chain Management
Which one of the following is NOT one of the Fundamentals of Forecasting? -All trends will eventually end. -The more "Granular" the forecast, the more accurate it is. -Technology is not the solution to better forecasting. -A correct forecast does not prove your forecast method is correct.
The more granular the forecast, the more accurate it is.
Which forecasting technique uses mathematical models and historical data to make forecats?
Quantitative
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 or False)
True
The Master Production Schedule represents?
What the company plans to produce.
Which of the following is NOT a Time Series Forecasting Techniques Simple Moving Average Naïve Forecast Historical Analogy Weighted Moving Average
Historical Analogy
Which one of the following is NOT one of the four reasons to hold inventory? *to decouple dependence in the supply chain *to avoid obsolescence *to decouple supply from demand *to buffer against uncertainty in demand and/or supply
To avoid obsolescence
A supply chain consists of...
*suppliers *manufacturers *customers *facilitated through the use of logistcs
Which inventory system classifies inventory based on the degree of importance in order to determine which inventories should be counted and managed more closely? *ABC System *Bin System *Base Stock Level System *Single-Period Inventory Model
ABC System
Costs for physically having inventory on-site, and for maintaining the infrastructure needed to store the inventory and to secure and insure it over time are referred to as? *carrying costs *variable costs *order costs *fixed costs
Carrying costs
What are two basic Supply Chain Capability Models?
Efficient Model and Responsive Model
Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competencies. (T or F)
False
Logistics is another name for transportation. (T or F)
False
The Bullwhip Effect occurs because suppliers and manufacturers for not make enough inventory to satisfy demand. (true or false)
False
The goals of Supply Chain Management are to...
Increase customer satisfaction while reducing inventory and operating expenses
Which type of demand is forecasted?
Independent Demand
Are the following two absolute deviations correct? 1. 500Actual - 300 Forecast = 200 Absolute 2. 500 Actual - 700 Forecast = -200 Absolute
No
The Supply Chain Operations Research (SCOR) Model is...
Plan, source, make, deliver/return, and enable
Which term used in Material Requirements Planning is defined as the number/quantity of each component or material needed to produce a single unit of the parent item?
Planning Factor
The lowest inventory level at which a new order must be placed to avoid a stockout is known as?
Reorder Point
To calculate the Economic Order Quantity, you need all of the following elements, EXCEPT? *Carrying cost *Order cost *Annual demand volume *Reorder point
Reorder Point
Which of the following is NOT one of the Constraints on the practical use of EOQ? *Unitization *Obsolescence *Production Lot Size *Safety Stock
Safety Stock
One of the main difference between Barcodes and RFID is that Barcodes require direct line of sight to read the information, and RFID does not. (True or False)
True
As the supply chain continues to evolve, it's critical for companies to...
adapt to emerging technologies and strategies
which of the following inventory types is characterized as "inventory used for a very specific purpose or future event, and for a defined period of time? *cycle stock *safety stock *strategic stock *pipeline inventory
strategic stock
Which production strategy would you use if the required production skill level is low, the training requirements are low, and the cost of hiring people and terminating them is low?
Chase Production Strategy
Companies in the service industry do not actually have a real supply chain because they offer intangible products. (T or F)
False
Companies establish Time Fences in order to?
Minimize the impact of changes and costly disruptions.
Which supply chain planning process is defined as a hierarchical planning process that translates annual business plans, marketing plans, and demand forecasts into a production? *Master Production Scheduling (MPS) *Sales and Operations Planning (S&OP) *Aggregate Production Planning (APP) *Material Requirements Planning (MRP)
Aggregate Production Planning (APP)
Which of the following is described a an information system connecting all the functional areas and operations of an organization via common software infrastructure and database.
Enterprise Requirements Planning System
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 high level of customer service
Which type of variation involves a pattern of variation within one year that can be repeated from year-to-year? Typically has some period of considerably higher demand.
Seasonal variation
Supply Chain Planning is the element of Supply Chain Management responsible for determining hoe best to satisfy the requirements created by the Demand Plan. (True or False)
True