POM Final Questions

The Pareto principle is best applied to which of the following inventory systems?

ABC classification

Which of the following is not included as an inventory holding cost?

Annualized cost of materials

Often, firms will work with their partners across the supply chain to develop forecasts and execute production and distribution between the partners. What technique does this describe?

Collaborative planning, forecasting, and replenishment

What are the three primary data sources used by the MRP system?

Master production schedule, bill-of-materials, inventory records file

Which scheduling process drives requirements in the MRP process?

Master production scheduling

What is another common name for the bill-of-materials?

Product Structure tree

What category of forecasting techniques uses managerial judgment in lieu of numerical data?

Qualitative techniques

Which of the following is not an assumption of the basic fixed-order quantity inventory model?

Returns to scale of holding inventory are diminishing.

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model?

S

In order to determine the standard deviation of usage during the lead time in the reorder point formula for a fixed-order-quantity inventory model, which of the following must be computed first?

Standard deviation of daily demand

What is the term for forecasts used for making day-to-day decisions about meeting demand?

Tactical Forecast

A type of inventory where a customer actually allows the supplier to manage the inventory policy of an item or group of items for them.

Vendor-managed inventory

Which of the following is a fixed-order-quantity inventory model?

Economic order quantity model

How many steps are there in collaborative planning, forecasting, and replenishment (CPFR)?

Five

Which of the following is a perpetual system for inventory management?

Fixed-order quantity

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) and arm's length relationships (outsource)?

Coordination

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

Cost of goods sold/Average aggregate inventory value

What is the first step in CPFR?

Creation of a front end partnership agreement

Which qualitative forecasting technique was developed to ensure that the input from every participant in the process is weighted equally?

Delphi Method