sup chain

Which inventory stock level is inventory that is already out in the market being held by wholesalers, distributors, retailers, and even consumers. The ownership of this inventory has been transferred to the trading partners, but may still influence decisions the company makes regarding how they manage and control their internal inventory. Strategic Stock Safety Stock Pipeline Stock Cycle Stock

Pipeline Stock

The Inventory Turnover Ratio shows how many times a firm turns over its inventory in an accounting period, and higher (i.e., more) inventory turnover is generally viewed as negative.

False

What is the name of the engineering document that shows all component parts and materials which make up the final product? Bill of Lading (BOL) Bill of Goods (BOG) Bill of Resources (BOR) Bill of Material (BOM)

Bill of Material (BOM)

Costs for physically having inventory on-site, and for maintaining the infrastructure needed to store the inventory and to secure and ensure it over time, are referred to as? Fixed Costs Variable Costs Order Costs Carrying Costs

Carrying Costs

When creating a quantitative forecast, if you detect a pattern of demand data that shows a wavelike pattern that last longer than 1 year and can extend over multiple years. This is known as what type of variation? Seasonal Variation Random Variation Cyclical Variation Trend Variation

Cyclical Variation

Dependent demand items are generally forecasted based on market conditions and/or historical sales and usage data.

False

Which of the following is NOT one of the advantages or Material Requirements Planning? On-time availability of the right materials required for production. Facilitates lower inventory levels Helps to optimize the use of production resources and lowers costs. Ignores capacity. Focuses on what is needed and when, regardless of capacity.

Ignores capacity. Focuses on what is needed and when, regardless of capacity.

Which type of demand is forecasted? Dependent Demand Independent Demand Conditional Demand Tentative Demand

Independent demand

What are the six (6) different functional areas of the Supply Chain Operations Research (SCOR) Model?

Plan, Source, Make, Deliver, Return, Enable

The number/quantity of each component or material needed to produce a single unit of the parent item, is known as the

Planing Factor

What is the difference between qualitative forecasting techniques and quantitative forecasting techniques?

Qualitative forecasting is based on opinion and intuition to make forecasts. Quantitative forecasting uses mathematical models and historical data to make forecasts

Which inventory stock level is carried above and beyond what is actually needed to meet anticipated demand? It represents a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. Cycle Stock Safety Stock Pipeline Stock Strategic Stock

Safety Stock

A supply chain consists of . . . ? Suppliers, Manufacturers, and Customers Suppliers, Manufacturers, and Customers facilitated through the use of Logistics Suppliers and Customers Product flow and Payment flow

Suppliers, Manufacturers, and Customers facilitated through the use of Logistics

What is supply chain management?

Supply chain management is the coordination of the network of otherwise independent trading partners who are creating a desired product or service, and then moving it through the supply chain out to customers when and where the customer wants it. Supply chain management is also the way business gets done and it is the execution process of any business.

Which of the following would be considered an independent demand item(s)? The ingredients ready to be made into a cake The mixed cake batter that is about to be baked The undecorated cake The decorated birthday cake

The decorated birthday cake

In terms of forecasting, what does the Mean Absolute Deviation (MAD) measure?

The size of the forecast error in units.

What are the four (4) variations in Quantitative Forecasting?

Trend Variations, Random Variations, Seasonal Variations, Cyclical Variations

The Master Production Schedule (MPS) is the plan that drives the business. Even small changes in the MPS can cause major changes in the detailed production schedule and the material plan, creating nervousness and instability throughout the organization.

True

The Master Production Schedule (MPS) represents what the company plans to produce expressed in specific product configurations, quantities, and dates.

True

To determine the Reorder Point, calculate the demand during lead time.

True

Which one of the following is NOT a common mode of transportation in the supply chain? a. Water b. Car c. Truck d. Air e. Rail

b. Car

In the absence of any other information or visibility, individual supply chain participants can begin second-guessing what is happening with ordering patterns, and potentially start over-reacting. This is known as? Bullwhip Effect Tracking Signal Running Sum of Forecast Errors Forecast Bias

Bullwhip Effect

Poor communication and inaccurate forecasts along the supply chain can results in the? Carbonaro effect Delphi effect Bullwhip effect Doppler effect

Bullwhip effect

A company that is adjusting the production rate and capacity to exactly match demand by increasing and decreasing labor, materials, or necessary resources as needed, is using which basic production strategy? Hybrid Production Level Production Full Capacity Production Chase Production Minimal Production

Chase Production

Companies in the Service Industry do not actually have a real supply chain because they offer intangible products.

False

The four broad categories of inventory are raw materials, work-in-process, semi-finished goods, and finished goods

False (Raw materials, Work-in-Process (WIP), Finished goods, Maintenance repair and operating (MRO))

Which of the following is NOT one of the basic types of forecasting Qualitative Force Field Analysis Cause and Effect Time Series

Force Field Analysis

Which of the following is NOT one of the ways that carrying too much inventory can become a significant liability? Too much inventory ties up capital. Holding more inventory usually means that a company can provide a higher level of customer service. Holding inventory too long may cause it to be unusable due to expiration, obsolescence, damage, or spoilage More inventory means more space is needed to hold it, and space costs money.

Holding more inventory usually means that a company can provide a higher level of customer service.

What are the four foundational areas of Supply Chain Management?

Operations management, Supply management, Logistics management, Integration management

The inventory control tool that does not require direct line of sight to read the tag on a product(s), is known as

Radio Frequency Identification

The part of supply chain management that deals with the process of moving goods specifically from the point of consumption back to the point of origin for return, repair, reclamation, remanufacture, recycling, or disposal, is known as

Reverse Logistics

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? Projected On-hand Inventory Scheduled Receipt Time Bucket Net Requirements

Scheduled Receipt

When creating a quantitative forecast, if you detect a repeating pattern of demand data from year to year with some periods of considerably higher demand than others. This is known as what type of variation? Trend Variation Random Variation Cyclical Variation Seasonal Variation

Seasonal Variation

Material Requirements Planning (MRP) requires all of the following EXCEPT? The independent demand information, i.e., finished product forecast The Rough-cut Capacity Planning information The Inventory status of final product and each of the components and materials The parent-component relationships from the Bill of Materials (BOM)

The Rough-cut Capacity Planning information

Which one of the following is NOT a function of inventory (i.e., NOT a reason to hold inventory)? To increase cash flow To buffer against uncertainty in demand and/or supply To decouple (i.e., disconnect) dependencies in the supply chain To meet customer demand To decouple (i.e., disconnect) supply from demand

To increase cash flow

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

The top two primary functions of inventory are to meet customer demand, and to buffer against uncertainty in demand and/or supply.

True

Which of the following forecasting methodologies is considered a Time Series forecasting technique? Weighted Moving Average Delphi Method Simulation Exponential Averaging Simple Movement Smoothing

Weighted Moving Average

Which model is depicted in the following diagram? a. Collaborative Planning, Forecasting, and Replenishment Model b. Anticipatory or Push Model c. Make-to-Order Model d. Responsive or Pull Model

b. Anticipatory or Push Model

The business model that consists of producing finished products on the basis of anticipated demand is? a. Assemble-to-Order b. Make-to-Stock c. Just-in-Time d. Make-to-Order

b. Make-to-Stock

The goals of Supply Chain Management are to? a. Increase customer satisfaction while increasing inventory and operating expenses b. Increase customer satisfaction through increased inventory and reduced operating expenses c. Increase customer satisfaction while reducing inventory and operating expenses

c. Increase customer satisfaction while reducing inventory and operating expenses

Successful modern supply chain management typically includes the practice of? Issuing ultimatums to your supply chain partner Keeping high inventories throughout the supply chain Collaborating and sharing information between supply chain partners Always purchasing materials with the lowest per unit cost

Collaborating and sharing information between supply chain partners

What is an Enterprise Requirements Planning (ERP) System?

An information system connecting all the functional areas and operations of an organization via common software infrastructure and database. -- AND/OR -- Provides real-time integrated management of the main business processes necessary to plan and control the organization.

As the supply chain continues to evolve, it's critical for companies to . . . ? a. Outsource their non-core competencies to trading partners that they can trust b. Outsource their core competencies to trading partners that they can trust. c. Increase inventory levels throughout the supply chain.

a. Outsource their non-core competencies to trading partners that they can trust

Describe/Define a Bill of Materials (BOM)

A document that shows an inclusive listing of all raw materials, component parts, and assemblies making up the final product.

The Qualitative forecasting method is based on opinion & intuition

True

Describe/Define Sales & Operations Planning (S&OP)

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.

Describe one action that supply chain participants can take to alleviate the Bullwhip Effect.

Collaboration: Sharing information through the use of electronic data interchange (EDI), point of sale (POS) data, and web-based systems can facilitate collaboration. Synchronizing the supply chain: Supply chain participants coordinate planning and inventory management to minimize the need for reactionary corrections. Reducing inventory: Through the use of just in time (JIT), vendor managed inventory (VMI), and quick response (QR), all of which will be discussed later in this course The Bullwhip Effect can be alleviated through Collaborative Planning, Forecasting, and Replenishment (CPFR) which combines the intelligence of multiple trading partners who share their plans, forecasts, and delivery schedules with one another in an effort to ensure a smooth flow of goods and services across a supply chain.

When a supply chain planner talks about using the BOM to do an MRP Explosion, they are talking about? The demand for final products that are affected by trends, seasonal patterns, and general market conditions When the supplier will use Value Analysis and disassemble the part to see how it's made The process of converting a parent item's planned order releases into component gross requirements Relating gross requirements for a component part to the planned order releases of the parent item

The process of converting a parent item's planned order releases into component gross requirements

Which one of the following is NOT a Benefit of Supply Chain Management? a. Better asset utilization b. Lower costs c. Increased inventory d. Increased revenue e. Improved customer service

c. Increased inventory