Supply Chain Logistics Management exam 2
is useful when only base and irregular demand components exist
As a forecasting technique, moving average:
Total number of laptops with 2 Gigabyte RAM, 80 Gigabyte hard drive and 16x DVD drive to be sold next year in US
If Dell computer is making a forecast for the next year, which of the following forecasts would most likely have the largest forecast error (as measure by the percentage error)?
Collaborative Planning, Forecasting, and Replenishment
In recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develop forecasts of demand. The procedure they are following is known as?
visibility
Knowing the location and status of inventory and resources is referred to as?
True
T/F A company that has a responsive supply chain capability is less reliant on forecasting than a company that has an anticipatory supply chain.
True
T/F CPFR involves joint planning of forecasts between customers and suppliers.
False
T/F Good supply chain visibility is achieved when a firm is able to identify its shipments and its inventory?
False
T/F It is generally easier to provide an accurate forecast of SKU level demand than it is to provide an accurate forecast of total demand.
False
T/F S&OP is a process that applies only to manufacturing organizations.
False
T/F S&OP is primarily concerned with implementation of advanced planning information technology.
False
T/F To effectively implement Sales and Operations Planning, sales and marketing people should develop marketing plans based on their forecast of demand while operations should develop the production plan based on their own forecast of demand.
False
T/F To insure that S&OP is most effectively implemented, a company should establish a specific department charged with S&OP responsibility.
False
T/F Use of statistical forecasting techniques removes the need for managerial judgment in forecasting.
irregular
The component of a forecast that is impossible to predict is?
supply/demand balancing
What accommodates elapsed time between inventory availability (manufacturing, growing, or extraction) and consumption?
buffering uncertainty
What accommodates uncertainty related to demand in excess of forecast or unexpected delays in order receipt and order processing in delivery?
decoupling
What allows economy of scale within a single facility and permits each process to operate at maximum efficiency rather than having the speed of the entire process constrained by the slowest?
geographical specialization
What allows geographical positioning across multiple manufacturing and distributive units of an enterprise?
local rate
What applies to a commodity when it moves under the tariff of a single carrier?
joint rate
What applies to a freight movement by more than one carrier?
freight-all-kinds rate
What applies to a mixture of different products transported under a negotiated rating?
minimum charge
What applies to all shipments regardless of shipment size or distance?
heuristics
What are the computational rules of thumb or shortcuts that reduce the time or computational resources required to develop an integrated plan?
time series forecasting techniques
What are the statistical methods utilized when historical sales data containing relatively clear and stable relationships and trends are available?
correlation
What assumes that the forecasted sales are preceded by some leading independent factor such as the sale of a related product?
exponential smoothing forecasting techniques
What bases the estimate of future sales on the weighted average of the previous demand and forecast levels?
promotional component of demand
What characterizes demand swings initiated by a firm's marketing activities, such as advertising, deals, or promotions?
piggyback service
What combines the flexibility of the truck for short distances with the low line-haul cost associated with rail for longer distances?
intermodal transportation
What combines two or more modes to take advantage of the inherent economies of each and thus provide an integrated service at lower total cost?
inventory policy
What consists of guidelines regarding what to purchase or manufacture, when to take action, and in what quantity?
inventory
What consists of the materials, components, work-in-process, and finished product typically stocked in the logistical system?
inventory control
What defines how often inventory levels are reviewed to determine when and how much to order?
reorder point
What defines when a replenishment order is initiated?
irregular component of demand
What includes the random or unpredictable quantities that do not fit into the other categories of demand?
extended exponential smoothing
What incorporates the influence of trend and seasonality factors when specific values for these components can be identified?
expediting
What involves the shipper notifying a carrier that it needs to have a specific shipment move through the carrier's system as quickly as possible and with no delays?
container
What is a box utilized for intermodal product storage and movement between motor freight, railroads, and water transportation?
carrier
What is a business that performs a transportation service?
simple regression
What is a causal forecasting technique that bases SKU forecast on a single factor?
multiple regression
What is a causal forecasting technique that bases SKU forecast on more than one forecast factor?
reconsignment
What is a change in consignee prior to delivery?
diversion
What is a change of the destination of a shipment prior to its arrival at the original destination.
sales & operations planning
What is a collaboratively established coordinated plan for responding to customer requirements within the resource constraints of the enterprise?
tariff
What is a collection of rates?
order-notified bill of lading
What is a credit instrument that provides that delivery may not be made unless the original bill of lading is surrendered to the carrier?
split delivery
What is a delivery of portions of a shipment to different destinations?
freight forwarder
What is a for-profit business that consolidates small shipments from various customers into a bulk shipment and then utilizes a common surface or air carrier for transport?
vendor-managed inventory
What is a modification of quick response when a supplier assumes responsibility for setting inventory targets and making restocking decisions?
demurrage
What is a penalty applied by railroads for holding a railcar beyond 48 hours before unloading the shipment. It is also applicable to water transportation except that the allowed time limit varies?
detention
What is a penalty charged by motor carriers when unloading the shipment exceeds the permitted time specified in the tariff?
service level
What is a performance target specified by management defining inventory performance objectives?
tracing
What is a procedure to locate lost or late shipments?
collaborative planning, forecasting, and replenishment
What is a process initiated by the consumer products industry to achieve coordination between supply chain partners for demand creation and demand fulfillment activities?
ABC classification
What is a product/market classification that groups products, markets, or customers with similar characteristics to facilitate inventory management?
adaptive smoothing
What is a regular review of alpha factor fit?
periodic inventory control
What is a review of the inventory status of an item at regular intervals such as weekly or monthly?
commodity rate
What is a special or specific rate published without regard to classification?
exception rate
What is a special rate for a specific area, origin/destination, or commodity when justified by either competitive or high-volume movements?
economic order quantity
What is a specific replenishment quantity balancing the cost of ordering with the cost of maintaining average inventory?
scheduled delivery area
What is a strategy of holding shipments to specific markets for delivery on selected days each week?
quick response
What is a technology-driven cooperative effort between retailers and suppliers to improve inventory velocity while closely matching replenishment supply to consumer buying patterns?
unit train
What is a train whose total capacity is committed to transporting a single product directly from one origin to one destination?
shipper association
What is a voluntary nonprofit entity where members, operating in a specific industry, collaborate to gain economies related to small-shipment purchases?
waybill
What is an alternative to a bill of lading transportation document, most commonly used for air shipments?
seasonal component of demand
What is an annually recurring upward and downward movement in demand?
advanced shipping notice
What is an early notification about an inbound shipment to prepare for its arrival?
articulated railcar
What is an extended rail chassis that can haul up to 10 containers on a single flexible unit?
broker
What is an intermediary that coordinates transportation arrangements for shippers, consignees, and carriers?
speculative inventory
What is bought prior to need for these common reasons: to hedge a currency exchange, to take advantage of a special discount, or to prepare for a potential work force disruption?
cyclic component of demand
What is characterized by periodic shifts in demand lasting more than a year?
consolidation
What is combining individual orders into larger shipments for a line-haul movement?
multivendor consolidation
What is coordination of freight from nonrelated firms into consolidated shipments?
force majeure
What is defined as circumstances beyond anyone's control, such as a natural disaster?
double stack railcar
What is designed to transport two levels of containers on a single flatcar?
ghost inventory
What is inventory that is present in the IT system but is physically missing, for example, due to theft?
safety stock
What is maintained in a logistical system to protect against demand and performance cycle time uncertainty?
capability
What is the ability of a mode to handle any transport requirement?
carrying capacity
What is the ability of the mode to carry large shipments?
supply chain visibility
What is the ability to track supply chain inventory and resources as well as effective evaluation and management of information regarding available resources?
order quantity
What is the amount of inventory ordered for replenishment?
bill of lading
What is the basic document utilized in purchasing transport services, serves as a receipt and documents products and quantities shipped?
logistics planning
What is the coordination of transportation, warehousing, and inventory within the firm and between supply chain partners?
demand management
What is the development of the forecast that drives anticipatory supply chain processes?
performance cycle
What is the elapsed time between the release of a purchase order by a buyer and the receipt of the shipment with that order. (i.e. order-to-delivery time)?
the alpha factor
What is the increment of adjustment in exponential smoothing?
trend component of demand
What is the long-range shift in periodic sales?
rating
What is the particular class that a given product or commodity is assigned to in order to determine the product's freight rate?
case fill rate
What is the percent of cases or units ordered that are shipped as requested?
order fill
What is the percent of customer orders filled completely?
line fill rate
What is the percent of order lines filled completely?
rate
What is the price in dollars and cents per hundredweight to move a specific product between two locations?
average inventory
What is the rolling mean of inventory across time?
forecast
What is the specific definition of what it projected to be sold, when, and where?
obsolete inventory (also known as deadstock)
What is the stock that is out-of-date or that has not experienced recent demand?
production planning
What is the use of the statement of requirements obtained from demand management in conjunction with manufacturing resources and constraints to develop a workable manufacturing plan?
released value rate
What limits carrier liability in case of loss or damage?
shipment manifest
What lists individual stops or consignees when multiple shipments are placed on a single vehicle?
government bill of lading
What may be used when the product is owned by the U.S. government?
pooled delivery
What means that a freight forwarder, public warehouse, or transportation company arranges consolidation for multiple shippers serving the same geographical market area?
collect freight bill
What means that the transport cost is paid by the consignee?
prepaid freight bill
What means that the transport cost is paid by the shipper prior to performance?
land bridge
What moves containers in a combination of sea and rail transport, commonly used for containers moving between Europe and the Pacific Rim to reduce the time and expense of all-water transport?
export bill of lading
What permits a shipper to use export rates, which may be lower than domestic rates?
fair share allocation
What provides each distribution facility with an equitable distribution of available inventory?
speed
What refers to elapsed movement time?
dependability (also called reliability)
What refers to potential variance from expected or published delivery schedules?
transport lane
What refers to regular movements between origin and destination points?
environmental services
What refers to special control of freight while in transit, such as refrigeration, ventilation, and heating?
availability
What refers to the ability of a mode to service any given pair of locations?
forecast accuracy
What refers to the difference between forecasts and corresponding actual sales?
integrated business planning
What reflects the need for more comprehensive business planning across the organization and the supply chain?
frequency
What relates to the quantity of schedule movements?
qualitative forecasting techniques
What relies heavily on human expertise and are quite costly and time-consuming?
freight bill
What represents a carrier's method of charging for transportation services performed?
surcharge
What represents an additional charge designed to cover specific carrier costs?
transit inventory
What represents the amount typically in transit between facilities or on order but not received?
base demand
What represents the long-term average demand after the other components of demand have been removed?
pull inventory system
What responds to a channel member's inventory needs by drawing the product through the distribution channel?
bolt-on approach
What 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?
class rate
What term evolved from the fact that all products transported by common carriers are classified for pricing purposes?
moving average forecasting techniques
What uses the average of the most recent period's sales?
Determining the financial objectives
When a company implements its monthly S&OP process, the process should begin with?
the S&OP process eliminates the need to have finished goods inventory
Which of the following is NOT a benefit of S&OP?
S&OP should focus 12-18 months into the future
Which of the following is NOT a key to making S&OP work in an organization?
simulation
Which of the following is not a time series technique of forecasting?
consignee
Who is the destination party?
