Chapter 16 & 18 & 4 Smartbook

Select all that apply Specific criteria for identifying functional products include which of the following? Check all that apply.

-Long product life cycle -Few (10-20) variations

The single exponential smoothing equation states that the _____ forecast is equal to the ______ forecast plus a portion of the _______.

-New -Old -Error

Select all that apply The total cost of ownership includes which of the following? Check all that apply.

-Procurement costs -Disposal costs

_____ forecasting techniques use managerial judgment while _____ techniques rely on mathematical models.

-Qualitative -Quantitative

Select all that apply Listed below are many of the costs that make up total cost of ownership. Which ones are categorized as acquisition costs? Check all that apply.

-Quality costs -Purchase planning costs -Taxes -Purchase price

Select all that apply These have low specificity.

-Request for proposal -Spot purchase

Select all that apply These have short contract duration.

-Request for proposal -Spot purchase

Select all that apply What are the drawbacks to forward buying? Check all that apply.

-Shipment bulge -Higher supply chain costs -Large carrying costs

Select all that apply Identify the basic classifications of forecasting.

-Time series analysis -Qualitative -Simulation -Causal relationships

Select all that apply A time series can be defined as chronologically ordered data that may contain one or more components of demand. What are these components?

-Trend -Cyclical -Seasonal -Autocorrelation -Random

Select all that apply These have high contract duration.

-Vendor managed inventory -Strategic alliance

Select all that apply Exponential smoothing with trend uses two constants. What are they?

-α -δ

Smoothing constants must be given a value between

0 and 1

Click and drag on elements in order There are six steps for the process for green sourcing. Please these steps in order where the first step is at the top.

1. Assess the opportunity 2. Engage sourcing agents 3. Assess the supply base 4. Develop the sourcing strategy 5. Implement sourcing strategy 6. Institutionalize the sourcing strategy

In the exponential smoothing method, how many pieces of information are needed to forecast the future?

3

If a firm produced a standard item with relatively stable demand, what alpha value would you expect them to use?

5 or 10

How many weeks of supply would we expect for a manufacturing firm.

6-7

With exponential smoothing, which smoothing constant controls the speed of reaction to differences between forecasts and actual demand?

Alpha

Which of the following should not be considered when structuring a supplier relationship?

Collaboration

_____ _____ is a program for automatically supplying groups of items to a customer on a regular basis. (Enter only one word per blank.)

Continuous replenishment

What type of activities are key to the business but do not confer a competitive advantage?

Core

What term describes the annual cost for a company to produce the good or services provided to customers?

Cost of goods sold

Which of the following is used to calculate inventory turnover?

Cost of goods sold/Average aggregate inventory value

Which of the following is not a forecast horizon used in forecasting?

Current

Match these forecasting types with their descriptions.

Qualitative - Techniques that use managerial judgment. Time series analysis - Based on the idea that data relating to past demand can be used to predict future demand. Causal forecasting - Assumes that demand is related to some underlying factor or factors in the environment. Simulation - These models allow the forecaster to run through a range of assumptions about the condition of the forecast.

What type of products have a life cycle of just a few months?

Innovative

With regards to demand characteristics, which type of product, functional or innovative, has the shorter product life cycle?

Innovative

During which step of the green sourcing process does the actual procurement process begin?

Institutionalize the sourcing strategy

What is the major restriction in linear regression forecasting?

It assumes that projections will fall in a straight line

What term refers to the management functions that support the complete cycle of material flow?

Logistics

In business forecasting, what time frame usually refers to three months to two years?

Medium

What time horizon(s) are used for strategic forecasts?

Medium and long-term

_____-_____ forecasts are useful for capturing seasonal effects.

Medium-term

What term describes moving some of a firm's activities to outside providers?

Outsourcing

How many inventory turns would we expect for a grocery store chain?

Over 100

Which cost of ownership includes maintenance and ergonomic factors?

Ownership

Which of the following is an innovative product?

Personal computer

Which of the following is not a component of demand?

Planned

Which of the following is not a broad cost category in total cost of ownership?

Pre-ownership

A moving average can be useful in removing what for forecasting.

Random fluctuations

All of the following are reasons why exponential has become well accepted except:

Tests for accuracy are difficult

Adjusting the value of alpha to more closely track actual demand is called ______ forecasting.

adaptive

The main disadvantage of the moving average is that

all individual data elements must be carried as data.

With _____ , the value expected at any point is highly correlated with its own past values.

autocorrelation

With a simple moving average, the idea is to simply calculate the _____ demand over the most recent periods.

average

Inventory turnover is the ratio of the cost of goods sold to

average aggregate inventory value

Relative to evolving manufacturing (supply) process, stable processes have _____ quality problems. (Enter only one word per blank.)

few

The custom-made Apple AirPods case is an example of a _____ -specificity item.

high

When choosing weights for a weighted moving average, the general rule states that the most recent periods should get the ________________ weighting.

highest

Single exponential smoothing has the shortcoming of changes in demand.

lagging

To get the trend equation going, the first time it is used the trend value must be entered

manually

Relative to evolving manufacturing (supply) process, stable processes have _____ supply sources

more

When demand for a product is neither growing nor declining rapidly, and if it does not have seasonal characteristics, a _____ ______ can be useful in removing the random fluctuations for forecasting.

moving average

With single exponential smoothing forecasting, the forecast _____ when a change in direction occurs.

overshoots

With single exponential smoothing forecasting, the forecast ______ when a change in direction occurs.

overshoots

In considering what forecasting approach to use, it is important to consider the _____ of the forecast.

purpose

With outsourcing, the _____ for making decisions over certain elements of the activities are transferred as well.

responsibilities

In a _____ auction, vendors actually bid on the item in real time and often using Internet software.

reverse

In general, the longer the averaging period

the smoother the plot.

When considering all costs of an item, we call it the

total cost of ownership.

Long-term forecasting models detect general trends and are especially useful in identifying major ______ ______

turning points

When the supplier takes full responsibility to manage items for the customer, the supplier is performing

vendor managed inventory.

An important cost area in green sourcing is _____ reduction opportunities.

waste

When deciding which forecasting model to use, a firm should consider all of the following except:

weather

If a firm produced a product where they were expecting growth, what alpha value would you expect them to use?

15 to 30

The bullwhip effect indications a lack of what among supply chain members?

Synchronization

Which of the following is used to weeks of supply.

(Average aggregate inventory value/Cost of goods sold) X 52

Select all that apply Which of the following should be considered when choosing a forecasting model? Check all that apply.

-Consequence of a bad forecast -Firm's degree of flexibility

Select all that apply Which types of inventory are included in the average aggregate inventory value? Check all that apply. Multiple select question.

-Distribution inventory -Work-in-process -Raw material -Finished goods

Select all that apply These have medium specificity.

-Electronic catalog -Reverse auction -Request for bid

Select all that apply Which of the following resources may be transferred in outsourcing? Check all that apply.

-Equipment -Facilities -People -Technology

Select all that apply What are some reasons that a firm might outsource logistics? Check all that apply.

-Freight tracking using technology -Lower costs -Reducing the number of employees

Select all that apply The smoothing constant values depend on which of the following? Check all that apply.

-How steady the trend factor is -The variation in the demand

Select all that apply Which of the following are organizationally driven reasons to outsource.

-Improve effectiveness by focusing on what the firm does best. -Increase flexibility to meet changing demand for products and services. -Increase product and service value by improving response to customer needs.

Select all that apply Which of the following are improvement-driven reasons to outsource.

-Improve risk management. -Improve credibility and image by associating with superior providers. -Improve quality and productivity. -Shorten cycle time. -Obtain expertise, skills, and technologies that are not otherwise available.

Select all that apply Identify the three criteria that are used to evaluate whether an activity should be outsourced or not.

-Intellectual property -Required coordination -Strategic control

What type of forecast is used for day-to-day decision making?

Tactical

Match these types of supply chains with their descriptions.

Efficient - These are supply chains that utilize strategies aimed at creating the highest levels of cost efficiency. Risk-hedging - These are supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain so that the risks in supply disruption can be shared. Responsive - These are supply chains that utilize strategies aimed at being responsive and flexible to the changing and diverse needs of the customers. These are supply chains that utilize strategies aimed at being responsive and flexible to the changing and diverse needs of the customers. Agile - These are supply chains that utilize strategies aimed at being responsive and flexible to customer needs, while the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources.

Green sourcing takes advantage of what?

Environmental factors

When the most recent occurrences are more indicative of the future than those in the distant past, one should use which time series model?

Exponential

_____ _____ is the most used of all forecasting techniques. (Enter only one word per blank.)

Exponential Smoothing

Which of the following is not a reason why exponential smoothing has been well accepted?

Formulating the model is relatively difficult

What term is used to describe a practice where a customer purchases excess parts in advance?

Forward buying

Match these terms used in the weighted moving average equation with their meaning.

Ft = Forecast for the coming period n = Total number of prior periods in the forecast At-1 = Actual occurrence in the past period w1 = Weight to be given to the actual occurrence for the period t − 1 w2 = Weight to be given to the actual occurrence for the period t − 2 wn = Weight to be given to the actual occurrence for the period t − n

Which of the following is the formula for a simple moving average?

Ft=At−1+At−2+At−3+...+At−n/n

Which of the following is the formula for a exponential smoothing with trend?

Ft=FITt-1+α(At−1−FITt−1)

Which of the following is the formula for a single exponential smoothing?

Ft=Ft-1+α(At−1−Ft−1)

Which of the following is the formula for a weighted moving average?

Ft=w1At-1+w2At-2+...+wnAt-n

What type of products have low profit margins, long product life and predictable demand?

Functional

What type of products include staples that people buy in a wide range of retail outlets?

Functional

With regards to demand characteristics, which type of product, functional or innovative, has more predictable demand?

Functional

Which of the following is not an organizationally driven reason to outsource?

Generate cash by selling low-return entities

A solicitation that asks for a detailed proposal from a vendor interested in supplying an item.

Request for proposal

Which sourcing process is used for complex items where there are a number of potential vendors?

Request for proposal

Retail stores that share inventory would traditionally use which type of supply chain?

Risk-hedging supply chain

What is the Excel function used to calculate the slope for regression?

SLOPE

What is the Excel function used to calculate the standard error estimate for regression?

STEXY

Which of the following is not a common constraint regarding vendor managed inventory?

Shipping terms

Match these forecasting methods with the amount of historical data they require. Instructions

Simple moving average - 6 to 12 months; weekly data are often used Weighted moving average and simple exponential smoothing + exponential smoothing with trend - 5 to 10 observations needed to start Linear regression - 10 to 20 observations Trend and seasonal models - 2 to 3 observations per season

Which of the following is a sourcing term to describe how common an item is and/or how many substitutes may be available?

Specificity

A one-time purchase is called what?

Spot purchase

Which type of supply process is one where the manufacturing and technology base are mature?

Stable

_____ manufacturing processes tend to be highly automated, and long term supply contracts are prevalent.

Stable

What type of forecast should be used for strategy, sourcing and location decisions? Multiple choice question.

Strategic

What type of forecasts are used for forecast decisions related to strategy and aggregate demand?

Strategic

Which type of activities are a key source of competitive advantage?

Strategic

What is focused on acquiring goods and services in a way that aids in achieving the needs of the business.

Strategic sourcing

What term describes the development and management of supplier relationships?

Strategic sourcing

Which of the following should not be outsourced?

The firm's core competencies

Sourcing activities can vary greatly and depend on what?

The item being purchased

The exponentially smoothed trend for period t (Tt) includes the error between what two terms?

The previous forecast and previous forecast including trend

Which of the following is not a reason why a firm may choose to outsource an activity?

Turn variable costs into fixed costs

When including trend effects in exponential smoothing, how many smoothing constants are required?

Two

If one variable changes because of the change in another variable, this is a _____ ______. (Enter only one word per blank.)

causal relationship

Relative to evolving manufacturing (supply) process, stable processes have _____ lead times.

dependable

Tactical forecasts are _________ term, while strategic forecasts are _____________ term.

short; medium and long

The exponential smoothing forecasting model uses the following data, except:

smoothing constant delta

Sourcing decisions are ______ decisions.

strategic

You generally use medium-term forecasts for planning a _____ for meeting demand over the next six months to a year and a half.

strategy