BUSMGT 2021 Midterm 1
Rank the following services from low to high in regards to degree of customer/server contact. Face-to-face total customization face-to-face loose specs phone contact internet and on-site technology face-to-face tight specs mail contact
1. Mail contact 2. Internet and on-site technology 3. Phone contact 4. Face-to-face tight specs 5. Face-to-face loose specs 6. Face-to-face total customization
Place the following production methods in order starting with the one having the highest level of inventory investment and moving down to the one with the lowest inventory investment. Make-to-stock Assemble-to-order Make-to-order Engineer-to-order
1. Make-to-stock 2.Assemble-to-order 3.Make-to-order 4.Engineer-to-order
Three-step risk management process
1. identify the sources of potential disruptions 2. assess the potential impact of the risk 3. develop plans to mitigate the risk
Place the following production methods in order starting with the one having inventory closest to the customer and then moving back to the one with inventory closest to the source. - make-to-stock - make-to-order - assemble-to-order - engineer-to-order
1. make-to-stock 2. assemble-to-order 3. make-to-order 4. engineer-to-order
There are _________________ dimensions depicted on a product-process matrix.
2 , two, to, or too
If a car has four engine choices, three transmission choices, and five entertainment choices, there are____________________ total number of combinations.
4 * 3 * 5 = 60
"C" items typically account for ____________________% of the items, but only account for a very small percentage of the inventory cost.
50
Which of the following is an example of a service business? Multiple choice question. A computer manufacturer An automobile manufacturer A home builder A call center
A call Center
Productitivy
A common measure of how well a country, industry, or business unit is using its resources (or factors of production).
Order winner
A criterion or possibly a set of criteria that differentiates the products or services of one firm from those of another. i.e price, quality, reliability.
Meeting a launch date
A firm may be required to coordinate with other firms on a complex project.. In such cases, manufacturing may take place while development work is still being completed. Coordinating work between firms and working simultaneously on a project will reduce the total time required to complete the project.
Queuing system
A process where customers wait in line for service
Make-to-stock
A production environment where the customer is served "on-demand" from finished goods inventory.
Make-to-order
A production environment where the product is built directly from raw materials and components in response to a specific customer order.
What is the relationship between response to customer demand and inventory investment? There is minimal relationship between inventory investment and customer response. The quicker you respond, the less inventory you have. Having more inventory makes it harder, and therefore slower, to respond to customers. A quicker response comes at the expense of greater inventory investment.
A quicker response comes at the expense of greater inventory investment.
Efficiency
A ratio of the actual output of a process relative to some standard. Also, being "efficient" means doing something at the lowest possible cost
Order qualifier
A screening criterion that permits a firm's products to even be considered as possible candidates for purchase.
Technical Liaison and support
A supplier may be expected to provide technical assistance for product, development, particular during the early stages of design and manufacturing.
The _______________________ inventory classification scheme divides inventory items into three groupings: high dollar volume, moderate dollar volume, and low dollar volume.
ABC
Supplier after-sale support
An important competitive dimension may be the ability of a firm to support its product after the sale. This involves availability of replacement parts and, possibly, modification of older, existing products to new performance levels. Speed of response to these after-sale needs is often important aswell.
Fixed-time period model (P-model)
An inventory control model that specifies inventory is ordered at the end of a predetermined time period. The interval of time between orders is fixed and the order quantity varies.
Fixed order quantity model (Q-model)
An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory.
Single-period problem
Answers the question of how much to orderwhen an item is purchased only one time and it is expected that it will be used and not reordered
What term describes the expected number of customers that arrive each period? Service rate Exit rate Arrival rate Survival rate
Arrival rate
This accommodation strategy entails extra employees or additional employee skills to compensate for variations among customers; Classic reduction Classic accommodation Uncompromised reduction Low-cost
Classic accommodation
Operations And supply chain strategy
Concerned with setting broad policies and plans for using the resources of a firm and must be integrated with corporates strategy.
Planning
Consists of the processes needed to operate an existing supply chain strategically. Here a firm must determine how anticipated demands will be met with available resources. A major aspect of planning is developing a set of metrics to monitor the supply chain so that it is efficient and delivers high quality and value to customers.
Which of the following would be recommended by the product-process matrix for high volumes? Manufacturing cell Project Continuous/Assembly line Workcenter/Workunit
Continuous / Assembly line
Where does an automobile manufacturer fall on the goods-service continuum? Multiple choice question. Pure goods Core services Pure service Core goods
Core Goods
The variation introduced by the customer into a service process causes a trade-off between which of the following? Cost and efficiency Cost and effort Cost and quality Cost and productivity
Cost and quality
__________________ is a physical inventory-taking technique in which inventory is counted frequently, often times on a time-based schedule.
Cycle counting
The average time between completion of successive units is which of the following? Throughput rate Turnaround time Flow time Cycle time
Cycle time
In a process flow chart a diamond represents which of following? Flow Storage area Decision point Tasks
Decision point
Which of the following is not a step required to make a good? Making Decoupling Delivering Sourcing
Decoupling
_____ is also referred to as logistics processes. Multiple choice question. Delivering Marking Returning Sourcing Planning
Delivering
Two characteristics of a product of service that define quality
Design Quality Process Quality
Select all that apply Which of the following affect safety stock levels in a fixed-order quantity model? Check all that apply. Lead time in days Reorder point in units Desired service level Standard deviation of usage during lead time
Desired service level Standard deviation of usage during lead time
Which of the following skills does a worker require when the degree of customer contact is high? Diagnostic skills Verbal skills Clerical skills Helping skills
Diagnostic skills
____________________inventory includes in-transit items or at a warehouse ready for shipment to the customer.
Distribution
The performance metric that measures a ratio of the actual output of a process relative to some standard is which of the following? Velocity Flow time Operation time Efficiency
Efficiency
Training of service personnel, consistency of service performance, availability and access to the service, and comprehensiveness of the service. Multiple choice question. Supporting facility Facilitating goods Explicit services Implicit services
Explicit Services
Demand is characterized as independent if it comes from sources_________________ to the firm and is not related to other __________________.
External, outside, or foreign products, parts, inventory, or items
In regards to the service package, the material purchased or consumed by the buyer or the items provided to the customer. Explicit services Information Implicit services Facilitating goods Supporting facility
Facilitating goods
True or False: According to the notion of trade-offs, an operation can excel simultaneously on all competitive dimensions.
False
True or False: All firms compete on the same dimensions
False
True or False: An operations and supply chain strategy is independent of a corporate strategy.
False
Which of the following is considered to be warehouse inventory? Work-in-process inventory Finished goods inventory in a distribution center Inventory at a vendor's facility awaiting shipment Raw material inventory awaiting a machining operation
Finished goods inventory in a distribution center
Which model is more likely to have a stock out? Fixed-time period Fixed-order quantity system Both are equally likely, depending on the desired service level used
Fixed-time period
Services generally vary from day to day and even hour to hour as a function of the attitudes of the customers and the servers. Which of the following are exceptions to this? Multiple select question. New technologies Soft technologies Information technologies Hard technologies
Hard Technologies Information Technologies
Select all that apply How can the waiting line be controlled on the server side? Check all that apply. Having the server use faster (or slower) machines Use express or special purpose lines Use faster setup Use a different layout Using faster servers
Having the server use faster (or slower) machines Use faster setup Use a different layout Using faster servers
Which of the following is a characteristic of goods? Multiple choice question. Intangible Homogeneous High customer interaction Inherently heterogeneous
Homogeneous
An _________________ ________________system provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked.
Inventory control
A key financial ratio directly tied to inventory is called? Earnings per share Debt ratio Inventory turns Cost of goods sold
Inventory turns
Sourcing
Involves the selection of suppliers that will deliver the goods and services needed to create the firm's product. A set of pricing, deliver, and payment processes are needed, along with metrics for monitoring and improving the relationships between partners of the firm. These processes include receiving shipment, verifying them, transferring them to manufacturing facilities, and authorizing supplier payments.
Which of the following is not a metric used to measure process performance? Utilization Productivity Lateness Efficiency
Lateness
The time needed to respond to a customer order is called the lead time cycle time turnaround time throughput time
Lead Time
Which of the following is not a feature of a service package? Explicit services Location Implicit services Information
Location
The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm? Make-to-order Engineer-to-order Assemble-to-order Make-to-stock
Make-to-stock
Which of the following types of processes has a large amount of finished good inventory? Make-to-order Engineer-to-order Assemble-to-order Make-to-stock
Make-to-stock
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment? Assemble-to-order Make-to-order Engineer-to-order Make-to-stock
Make-to-stock
Firms that service customers from finished goods inventory are known as engineer-to-order firms make-to-stock firms make-to-order firms assemble-to--order firms
Make-to-stock firms
Which of the following terms describes a process that has several groups of activities linked through flows? Multi-channel Multi-stage Single-channel Single-stage
Multi-stage
The major problem of this structure is that it requires rigid control of the line to maintain order and to direct customers to available servers. Multichannel, single phase Multichannel, multiphase Mixed Single channel, single phase Single channel, multiphase
Multichannel, single phase
Which of the following is not a channel in queue structures? Mixed Single Multichannel Multiphase
Multiphase
When can a service innovation be patented? Multiple choice question. Only when a physical product is provided with the service. Always Never Only when the company holds a trademark.
Never
Straddling
Occurs when a company seeks to match the competitive dimensions of a competitor while maintaining its existing position. It adds new features, services, or technologies onto the activities it already performs.
OSCM
Operations and Supply Chain Management
What is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. Multiple choice question. Operations and supply chain management Supply chain management Inventory management Aggregate planning Master production scheduling
Operations and supply chain management
Which of the following is an example of an output of a service process? Ground equipment Passengers transported Reservation personnel Flight crews
Passengers transported
Social Responsibility
Pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business.
Poka-yokes
Procedures that prevent mistakes form becoming defects. They are commonly found in manufacturing but also can be used in service processes
One or more activities that transform inputs into outputs is/are called what? Multiple choice question. Process Planning Delivering Returning Making Sourcing
Process
Also known as throughput ratio. Throughput rate Flow time Value-added time Operation time Process velocity
Process velocity
Strategic Analysis
Process: Define vision, mission, and objective ---> Conduct Strateggic Analysis ---> Define Strategic competitive priorities Output: Customer preferences New Tech. Population demographics Competition analysis
Implementation projects
Process: Definition of specific Implementations Projects ---> Identification of resources needed ---> project funding procurement Outputs: Specific Project Plans
Initiatives
Process: Identification of major steps needed in response to new competitive priorities ---> Product Design Initiatives ---> Operations and Supply Chain initiatives Outputs: Product/Platform Changes Operations / Supply Chain Changes
A framework depicting when the different production process types are typically used depending on volume and standardization is known as what? Product-process matrix Process-cost matrix Product-volume matrix Process-time matrix
Product-Process Matrix
Building service activities into a firm's product offering is known as Multiple choice question. product-service processing product-service handling product-service bundling product-service decoupling
Product-Service Bundling
The performance metric that measures the ratio of output to input is which of the following? Utilization Productivity Throughput rate Efficiency
Productivity
Where do food products fall on the goods-service continuum? Multiple choice question. Pure services Core services Pure goods Core goods
Pure goods
What term describes a line of waiting persons, jobs, things, or the like? Line Finite Infinite Queue
Queue
Which of the following indicates when the inventory position drops to the reorder level, as per a fixed-order quantity model? R N T Q
R
Operations Effectiveness
Relates to the core business processes needed to run the business
Design Quality
Relates to the set of features the product or service contains
Supply chain _________ is the likelihood of a disruption that would impact the ability of a company to continuously supply products or services.
Risk
Core __________ service , Correct Unavailable providers must integrate tangible goods.
Service
Delta Company uses special equipment and personnel to changeover production runs quickly. The costs associated with this changeover approach are considered Purchasing costs Setup costs Carrying costs Rapid stock costs
Setup costs
Which order cost is frequently little more than a guess? Setup Ordering Holding Shortage
Shortage
The size of arrivals can be described in what two terms? Single and Group Patient and Group Patient and Batch Single and Batch
Single and Batch
Which of the following processes involves the selection of suppliers? Multiple choice question. Delivering Returning Sourcing Making
Sourcing
Select all that apply Which of the following affect safety stock levels in a fixed-order quantity model? Check all that apply. Standard deviation of usage during lead time Reorder point in units Lead time in days Desired service level
Standard deviation of usage during lead time Desired service level
The term that describes when activities in the process stage must stop because there is no work? Buffer Bottleneck Starving Blocking
Starving
Little's Law
States a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory inventory = throughput rate * Flow time
Which of the following is not one of the basic accommodation strategies for handling customer-introduced variability into a service system? Super Classic Uncompromised Low-cost
Super
In regards to the service package, the physical resources that must be in place before a service can be offered. Facilitating goods Explicit services Implicit services Information Supporting facility
Supporting Facility
In a process flow chart a rectangle represents which of following? Decision Flow Tasks Buffer
Tasks
Starving
The activities in a stage must stop because there is no work
Blocking
The activities in the stage must stop because there is no place to deposit the item just completed
Inventory position
The amount on-hand plus on-order minus backordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocated amounts.
Cycle time
The average time between completions of successive units in a process
Operations and supply chain management (OSCM)
The design, operation, and improvement of the systems that create and deliver the firm's primary products and services.
Which of the following is not a main factor to consider with waiting lines regarding line structure and service rate? The distribution utilized The number of lines The line length The queue discipline
The distribution utilized
Service Rate
The number of customers a server can handle during a given time period.
Days-of-supply
The number of days of inventory of an item
Lead Time
The time needed to respond to a customer order
Setup time
The time required to prepare a machine to make a particular item
Run time
The time required to produce a batch of parts
Total average value of inventory
The total average investment in raw material, work-in-process, and finished goods inventory
Other Dimensions.
These typically include such factors as colors available, size, weight, location of the fabrication site, customization available, and product mix options.
Environmental impacted
This dimension is related to critera such as carbon dioxide emissions, use of nonrenewable resources, or other factors that relate to sustainability.
Optimal order quantity (Qopt)
This order size minimizes total annual cost.
Shareholders
Those individuals or companies that legally own one or more shares of stock in the company.
Select all that apply An inventory control system is responsible for which of the following? Finding the best price for goods Timing the order placement Keeping track of what has been ordered Receiving goods Ordering goods Selecting new vendors
Timing the order placement Keeping track of what has been ordered Receiving goods Ordering goods
True or False: An operations strategy must consider the risk in a supply chain
True
True or False: Operations effectiveness is related directly to the costs of doing business
True
True or false: Operations and supply chain management is focused on the systems that create and deliver an organization's products and services.
True
True or false: A service organization exists to serve the customer True False
True
True or false: Carrying finished goods inventory is more expensive than carrying raw material inventory. True False
True
True or false: Manufacturing processes are used to make tangible goods. True False
True
True or false: The best way to start analyzing a process is to diagram its basic elements. True False
True
True or false: The cost trade-off decision in the management of queues is often straightforward. True False
True
True or false: The exponential distribution can be derived from the Poisson distribution. True False
True
Once a customer is served, how many fates are possible? One Two Three Four or more
Two
Which of the following is not a way to control arrivals? Establish specific hours for customers Run a special Use a faster machine Create short lines
Use a faster machine
Which of the following terms describes the ratio of the time that a resource is activated, relative to the time that it is available for use? Utilization Flow time Cycle time Throughput time
Utilization
_____________________services are services that operate completely from the Internet.
Virtual
Analyzing a process allows some important questions to be answered. Which of the following would not likely be one of those questions? How many customers can the process handle per hour? How long will it take to serve a customer? What change is needed in the process to expand capacity? What should the firm charge? How much does the process cost?
What should the firm charge?
Select all that apply Which of the following is/are manufacturing inventory items? In-transit supplies Work-in-process Finished products Component parts in manufacturing
Work-in-process Finished products Component parts in manufacturing
Which work flow structures is appropriate for a process with great flexibility to produce a variety of products? Workcenter Continuous process Manufacturing cell Project layout
Workcenter
Service Package
a bundle of goods and services that is provided in some environment
web platform business
a firm that creates value by enabling the exchange of information and processing of transactions between consumers and providers of a service or product
Product-process matrix
a framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is
Productivity
a measure of how well resources are used.
Inventory turn
a measure of the expected number of times inventory is replaced over a year
Cycle counting
a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year
Exponential distribution
a probability distribution associated with the time between arrivals
Continuous process
a process that converts raw materials into finished product in one continuous process
Assemble-to-order
a production environment where preassembled components, subassemblies, and modules are put together in a response to a specific customer order
Make-to-stock
a production environment where the customer is served "on-demand" from finished goods inventory
Bottleneck
a resource that limits the capacity or a maximum output of the process
Assembly line
a setup in which an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate.
Project Layout
a setup in which the product remains at one location, and equipment is moved to the product
Buffer
a storage are between stages where the output of a stage is placed prior to being used in a downstream stage
Inventory
all the money that the system has invested in purchasing things it intends to sell
Reorder point (R)
an order is placed when inventory drops to this level
Process
any set of activities performed by an organization that takes inputs and transforms them into outputs ideally for greater value to the organization that the original inputs
In the exponential distribution, lambda (λ) represents the mean number of ___________ per time period? seconds customers waiting arrivals departures
arrivals
The two critical components of ALL reorder point calculation scenarios are: average daily demand and lead time in days annual demand and lead time in days average product costs and average daily lead time order cycle time and transportation costs
average daily demand and lead time in days
A _________________ is when the order is held and filled at a later date when the inventory for the item is replenished.
backorder
Comparing the metrics of one company to another, is often referred to as ______________________.
benchmarking
Which of the following describes a resource that limits the capacity or maximum output of a process? Bottleneck Starving Buffer Blocking
bottleneck
A standard approach to choosing among alternative processes or equipment that uses fixed cost, variable costs, and revenue is known as break-even analysis net present value revenue analysis economic analysis
break-even analysis
hybrid
combines the features of both make-to-order and make-to-stock
Products and services sold strictly on the basis of cost and are typically _________-like
commodity
A ________________service time rule states that each service takes exactly the same time.
constant
within every industy, there is usualy a segment of the market that buys solely on the basis of low _________
cost, price or prices
The customer order _______________ point determines where inventory is positioned to allow processes or entities in the supply chain to operate independently.
decoupling
The x-axis of the service-system matrix shows which of the following degree of process efficiency degree of innovation degree of customer contact degree of sales opportunity
degree of customer contact
When then number of needed items are computed based on the number of higher-level items produced, one is operating in a(n)_______________ demand environment.
dependent
___________________ inventory includes in-transit items or at a warehouse ready for shipment to the customer.
distribution
ABC inventory classific
divides inventory into dollar volume categories that map into strategies appropriate for the category
Fixed-order quantity models are _____________ triggered.
event
capability variability
example: a patient being unable to explain his or her symptoms to a doctor
arrival variability
example: a restaurant customer comes at a time inconsistent with average demand
request variability
example: a traveler asks for a room with a view at a crowded hotel
Subject preference variability
example: one bank customer interpreting a teller addressing him by his first name as a sign of warmth, while another customer feels that such informality is un-businesslike.
Effort variability
example: shoppers not bothering to put their shopping carts in a designated area in a supermarket parking lot
True or false: A large party of 10 at a restaurant is an example of a single arrival size. True False
false Reason not true: While they come in together, each one must be waited on individually so this is a batch arrival.
A multiple-stage process has multiple groups of activities that are linked through ________________
flows
Core ___________________ providers already provide a significant service component as part of their businesses.
goods
Manufacturing cell
groups dissimilar machines to work on products that have similar shapes and processing requirements
Engineer-to-order
here the firm works with the customer to design the product, which is then made from purchased material, parts, and components.
Activity-System Maps
how a company's strategy is delivered through a set of tailored activities
Attitude of the servers, atmosphere, waiting time, status, privacy and security, and convenience. Multiple choice question. Supporting facility Implicit services Facilitating goods Explicit services
implicit services
If the cycle time decreases, the output of the process will______________.
increase
If the utilization of a process increases, the output of that process will ____________________
increase or grow
Campbell's Soup makes product for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ________ demand. independent forecasted dependent marketing
independent
What two terms are utilized to describe line length? Unlimited and set number Infinite and limited Infinite and set number Unlimited and limited
infinite and limited
A platform business creates value by enabling the exchange of __________________ between the consumers and the providers.
information
A process that cannot be weighed or measured is known as Multiple choice question. perishable intangible tangible time dependent
intangible
The time between placing an order and receiving the item(s) is called: lead time cycle count reorder point demand variation
lead time
The higher the per unit revenue, the_____________________ the break-even volume.
lower, less, smaller, or lesser
A constant service time is generally limited to _______________-controlled operations
machine
More accommodation implies _____; less accommodation implies _____. more cost, less-satisfied customer more cost, more-satisfied customers less cost, less-satisfied customer less cost, more-satisfied customers
more cost, less-satisfied customer
pacing
movement of items through a process is coordinated through a time mechanism
workcenter
often referred to as a job shop, a process structure suited for low-volume production of a great variety of nonstandard products. Workcenters sometimes are referred to as departments and are focused on a particular type of operation
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost. execution holding buffer ordering
ordering
The managerial and clerical costs to prepare purchase or production orders are called: ordering costs logistics costs shortage costs holding costs
ordering costs
__________________refers to the fixed timing of the movement of items through the process.
pacing
if you wish to measure productivity in units other than dollars, you must use ____________ measures of productivity.
partial
The fixed-order quantity model is a _______________ system, which requires that every time a withdrawal from inventory or an addition to inventory is made, records must be updated to reflect whether the reorder point has been reached.
perpetual
The fixed-order quantity model is a __________________system, which requires that every time a withdrawal from inventory or an addition to inventory is made, records must be updated to reflect whether the reorder point has been reached.
perpetual
If safety stock is ______________, the effect is to place a reorder sooner.
positive
Poisson distribution
probability distribution for the number of arrivals during each time period
Safety stock inventory levels are determined by the__________________ of stock out at a given desired service level.
probability, chance, or likelihood
A ____________________ is any part of an organization that takes inputs and transforms them into outputs.
process
________________is the ratio of output to input.
productivity
A difficult but important first step in process analysis is to clearly define the _________________ of the analysis.
purpose, goal, or objective
Work measurement
setting time standards for a job
Specialization of labor
simple, repetitive jobs are assigned to each worker
Job enrichment
specialized work is made more interesting by giving the worker a greater variety of tasks
Job design
specification of the work activities of an individual or group
The term _____ is used to indicate that multiple activities have been pulled together for analysis purposes. single-channel multi-channel stage
stage
In the make-to-order and engineer-to-order environments, the customer order decoupling point could be in either raw materials at the manufacturing site or possibly even with the ______________ inventory.
supplier
Safety Stock
the amount of inventory carried in addition to the expected demand
flow time
the average time that it takes a unit to move through an entire process
Independent demand
the demands for these items are unrelated to each other, or to activities that can be predicted with certainty
Arrival rate
the expected number of customers that arrive each period
service blueprint
the flowchart of a service process, emphasizing what is visible and what is not visible to the customer
Dependent demand
the need for any one item is a direct result of the need for some other item, usually an item of which it is a part. Also, when the demand for the item can be predicted with accuracy due to a schedule or specific activity
throughput rate
the output rate that the process is expected to produce over a period of time
high and low degrees of customer contact
the physical presence of the customer in the system and the percentage of times the customer must be in the system relative to the total time it takes to perform the service
Utilization
the ratio of the time that a resource is actually activated relative to the time that it is available for use
Process velocity
the ratio of the value-added time to the flow time
operation time
the sum of the setup time and run time for a batch of parts that are run on a machine
Value-added time
the time in which useful work is actually being done on the unit
Price-break model
this model is useful for finding the order quantity of an item when the price of the item varies with the order size
Stakeholders
those individuals or organizations that are influenced, either directly or indirectly, by the actions of the firm
Fixed-time-period models are ______________ triggered.
time
lean manufactruing
to achieve high customer service with minimum levels of inventory investment
True or False: A process is made up of one or more activities that transform inputs into outputs
true
The probability approach to determining safety stock considers only the probability of running out of stock, not how ______________ many we are short.
units
Customer order decoupling point
where inventory is positioned in the supply chain
This is safety stock. zσT+L q I A d(T+L)
zσT+L
This is the variance of the exponential distribution. 1/λ λ 1/λ^2 λ^2
λ