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the detailed plan that shows the exact end items to be produced in a specific time frame is known as:
Mater Production Schedule
which of the following is a long range supply chain plan?
aggregate production plan
which of the following terms used in mrp represents the parts demanded by a parent?
component
Companies hold a supply of inventory for all of the following reasons EXCEPT:
increasing production change/setup costs
which of the following would most likely be considered a dependent demand item?
a bicycle tire used to assemble a bicycle
what technology stores information on a small electronic device which can be attached to an object and can be read from up to several feet away, without the need for direct line-of-site?
radio frequency identification
companies in the service industry cannot maintain inventory of services, however, they can maintain inventory of "_____" which are items that are used during the service being provided
intangible products*
warehousing, customer relationship management, and international trade are all important functional areas that are most closely related to?
logistics and transportation
A quantitative decision model based on the trade-off between annual inventory carrying costs and annual ordering costs is known as:
economic order quantity
the process of combining statistical forecasting techniques and judgement to construct demand estimates for products or services is known as?
demand planning*
Material Requirements Planning (MRP) is used to:
determine what materials you need to make the finished product and when to order them
the inventory turnover ratio shows how many times a firm turns over its inventory in an accounting period, and higher inventory turnover is generally viewed as negative
false
the most commonly used forecasting accuracy measures are mean absolute deviation (MAD), mean multiple regression (MMR), and mean absolute percentage error (MAPE)
false
the lowest inventory level at which a new replenishment order must be placed to avoid a stockout is known as the "breakeven point"
false (reorder point)
in the level production strategy, capacity is adjusted to match demand in an effort to handle the fluctuating demand patterns
false*
if you choose to pick your desired enterprise resource planning applications from the top vendor of each individual application, your are using the single integrator approach to selecting your ERP system
true
the key disadvantages of the material requirements planning system include loss of visibility, and the fact that it ignores capacity and shop floor conditions
true
the two main reasons hat companies implement supply chain management are to achieve cost savings and better coordinate resources
true
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?
enterprise requirement planning
If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average.
false
a bin system is a type of inventory system in which inventory is only ordered for a one-time stocking
false
costs which cannot be traced directly to the volume of units being produced are known as variable costs
false
dependent demand items are generally forecasted based on market conditions and/or historical sales and usage data
false
the four broad categories of inventory are raw materials, work-in-process, semi-finished goods, and finished goods
false
the true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, rather than from the exchange of information between trading partners
false
which one of the following would be considered an inventory holding or carrying cost?
insurance costs/transportation costs*
A certain supply chain is made up of the following companies: 1. raw material supplier 2.intermediate supplier 3.manufacturer 4.wholesaler/distributor 5.retailer who is considered the second tier supplier of the manufacturer
intermediate supplier
Which of the following statements is false?
it is not generally recommended to use both quantitative and qualitative forecasting methods
________, such as lubricants for machines, are used in the production process, but do not become a part of the final product
maintenance, repair, and operating supplies
which of the following is not part of the supply chain planning hierarchy?
modified manufacturing plan (MMP)
one common cause-and-effect forecasting model is?
multiple regression
the following are all common qualitative forecasting models except:
naive forecasting
the number or quantity of each component or material needed to produce a single unit of the parent item is known as:
planning factor
what part of supply chain management deals with the process of moving goods specifically from the point of consumption back to the point of origin for repair, reclamation, remanufacture, recycling or disposal
reverse logistics
to determine if it is possible to actually execute and complete the mater production schedule as planned, you would use which of the following?
rough-cut capacity planning
Why would a company want to use ABC analysis when managing their inventory?
so they can focus their limited resources on the items that have the highest inventory value
what type of inventory is used; to take advantage of a price discount, to take advantage of a business opportunity, or for life cycle changes?
strategic stock
when a supply chain planner talks about using the BOM to do an MRP Explosion, they are talking about:
the process of converting a parent item's planned order releases into component gross requirements
material requirements planning requires all of the following except
the rough-cut capacity planning information
a forecast is an estimate of future demand and provides the basis for supply planning decisions
true
enterprise resource planning (ERP) systems allow supply chain members to share information so that scarce resources can be fully utilized to meet demand, while also minimizing supply chain inventories
true
in a fixed order quantity system, inventory levels are only checked/reviewed in pre-determined time intervals and may therefore require you to maintain higher levels of safety stock
true
it was intense global competition that led manufacturers to adopt supply chain management and other practices such as Just-In-Time (JIT)
true
the absence of communication and collaboration among companies in a supply chain creates individual supply chain participants to second-guess what is happening with ordering patterns, and therefore potentially over-react, creating the bullwhip effect
true
the foundational elements of Supply Chain management are integration, supply management, logistics management, and operations managements
true
simple moving average is a time series forecasting model which works well when the actual demand is either trending up or down over a long period of time
true*
what is the name of the engineering document that shows all component parts and materials which make up the final product?
Bill of Material
the business practice that combines the intelligence of multiple trading partners in the planning and fufillment of customer demands is known as
CPFR
what is the term for the type of inventory system that issues an order whenever a withdrawal is made from inventory, and the replinishment order quantity is equal to the quantity withdrawn from inventory
base stock level system
the impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:
bullwhip effect