Supply chain

2 Basic Supply Chain Capability Models

1 Efficient -minimize cost Ideal for Functional Products 2. Responsive- respond quickly Ideal for innovative products

true

Cause-and-Effect Models can have multiple independent variables

false

Collaborative Planning, Forecasting, and Replenishment is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services

False

Forecasts are more accurate the farther out into the future that you forecast

false

Independent Demand is demand for an item that is directly related to other items or finished products, such as a component or material used in making a finished product

Obsolete Inventory

Inventory that can no longer be sold because the product has expired, been redesigned, was over-ordered, or is at the end of its product life.

True

It was intense global competition that led manufacturers to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT).

1950s-1960s

Manufactures were _internally focused___on maximizing their own internal operations.

MRP II

Manufacturing Resource planning ) helps to improve __internal communication and operations -plan and execute product inventory, people, and facilities

false

Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage

false

Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.

MRP

Material Requirements Planning (MRP) is a method of determining what __materials are needed and when_ they are needed to support the production plan.

False

Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain.

True

Supply Chain Management starts with understanding the flow.

false

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern.

true

The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost.

True

The Qualitative forecasting method is based on opinion & intuition

FALSE

The following diagram depicts the anticipatory business model (or push business model). Sell Product(s) to Customer => Create Supply Plan =>Buy Materials to Produce Product(s) => Manufacture Product(s) => Deliver Product(s) to Customer

true

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

Flase

The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs.

true

The goal of supply chain planning is to balance supply and demand in a way that realizes the financial and service objectives of the company.

false

The lowest inventory level at which a new order must be placed to avoid a stockout is known as the Replenishment Threshold

true

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy.

true

The top 2 primary functions of inventory are (1) To meet customer demand, and (2) To buffer against uncertainty in demand and/or supply.

false

There are no inventories in the service industry

Quantitative

based on mathematical modeling, objective and consistent, and can handle large amounts of data

Qualitative

based on subjective opinions; often called judgmental methods

Pipeline Inventory

inventory that is in transit between suppliers and customers

Safety Stock

inventory to protect against fluctuations in demand or supply

The Foundations of Supply Chain Management

operations management supply management logistics management integration

Cycle Stock

satisfy its' immediate demand.

2000 ABOVE

time when companies focused on relationships, sustainability, and social responsibility

1980s-1990s

time when global competition pushed manufacturing to SCM, JIT, TQM, and BPR

1960s-1970s

time when introduction of computers developed MRP and MRPII

Strategic Stock

very specific purpose or future event, and for a defined period of time