Exam 1 Supply Chain
calculate the mean absolute deviation (MAD) for the months of January through April using the following data
125
what does the acronym CPFR represent
Collaborative Planning, Forecasting, and Replenishment
maintaining a constant production rate while allowing finished foods inventory and backlogs to fluctuate up and down to meet demand, is using which basic production strategy
level production
which of the following would be considered an independent demand item(s)
the decorated birthday cake
which of the following is NOT one of the fundamentals of forecasting
the more "granular" the forecast, the more accurate it is
which of the following is NOT a function of inventory (NOT a reason to hold inventory)
to increase cash flow
which of the following would be considered an inventory ordering cost
transportation costs
Economic Order Quantity (EOQ) is the the optimal order size because it minimizes the annual total inventory cost
true
It was intense global competition that led manufacturers to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT).
true
dependent demand is demand for an item that is directly related to other items or finished products, such as component or material used in making a finished product
true
forecasts generally become less accurate the farther out into the future that you forecast
true
the level production strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern
true
the supply chain capability model designed to minimize cost is known as the responsive model
true
the goals of supply chain management are to
Increase customer satisfaction while reducing inventory and operating expenses
which model is depicted in the following diagram? includes: create forecast, create supply chain, buy materials, manufacture, warehouse, sell, deliver
anticipatory or Push model
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 affect
a quantitative decision model based on the trade-off between annual inventory carrying costs and annual ordering costs is known as what
economic order quantity (EOQ)
Inventory turn over ratio shows how many times a firm turns over it's inventory in an accounting period, and higher inventory turnover is generally viewed as negative
false
Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain.
false
When a company utilizes a "make to stock" strategy, the company is also said to be using a "pull" business model
false
companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competencies
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
false
the lowest inventory level at which a new order must be placed to avoid a stockout is known as the replenishment threshold
false
define sale and operating planning (S$OP)
is 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
what is supply chain management?
is the coordination of the network of otherwise independent trading partners who are creating a desired product or service, and the moving it through the supply chain out to customers, when and where the customer wants
which of the following is NOT a type of qualitative forecasting
linear trend
what are the four foundational areas of supply chain management
operational, supply, logistics, and integration management
the number/quantity of each component or material needed to produce a single unit of the parent item, is known as the
planning factor
what is the difference between quantitative and qualitative forecasting techniques
qualitative is based on opinion and intuition, and quantitative uses mathematical models and historical data to make forecasts
the lowest inventory level at which a new order must be placed to avoid a stockout is known as
reorder point
which type of forecast variation involves a pattern of variation within one year that can be represented from year to year? Typically has some period of considerably higher demand
seasonal variation
organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a
single integrator solution
inventory is an asset that allows a company to support manufacturing operations and fill customer orders immediately, but too much inventory ties up capital and can become a significant liability
true
one of the main differences between barcodes and RFID is that barcodes require a direct line of sight to read the information, and RFID does not
true
which basic production strategy would you use if the required skill level of the production workers is low, the training requirements are low, and the cost of hiring people and terminating them is also low
chase production strategy
independent demand is demand for an item that is directly related to other items or finished products, such as component or material used in making a finished product
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
sales and operating planning (S&OP) is typically performed about every 3 to 18 months
false
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
Which of the following statements is true?
strategic partnerships are seen as one of the foundations of supply chain management
supply chain planning is the element of supply chain management responsible for determining how best to satisfy the requirements created by the demand plan
true
the fundamental elements of supply chain management are; integration, Supply Chain Management, Logistics Management, and Operations Management
true
the master production schedule (MPS) represents what the company plans to produce expressed in specific product configurations, quantities, and dates
true