Supply Chain 1-4 REVIEW

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

False

The primary purpose of the basic economic order quantity model is?

To minimize the sum of ordering cost and holding cost

Supply Chain Management starts with understanding the flow.

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

True

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

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.

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.

True

A type of inventory system that issues an order whenever a withdrawal is made from inventory, is known as?

Base Stock Level System

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?

Bill of Materials

Which one of the following is NOT a common mode of transportation in the supply chain?

Bus

Successful modern supply chain management typically includes the practice of?

Collaborating and sharing information between supply chain partners

What does the acronym CPFR represent?

Collaborative Planning, Forecasting, & Replenishment

Which one of the following is NOT one of the four Foundations of Supply Chain Management?

Demand Management

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

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

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.

False

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

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 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

False

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

False

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

False

There are no inventories in the service industry.

False

Inventory costs which are independent of the output quantity are called?

Fixed Costs

The process of converting a parent item's planned order releases into component gross requirements is called?

MRP Explosion

_______________________ measures the size of the forecast error in units. It is calculated as the average of the unsigned errors over a specified period of time

Mean Absolute Deviation

Which one of the following is NOT a type of qualitative forecasting?

Naïve method

The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called?

Rough-cut Capacity Planning (RCCP)

Which of the following MRP terms represents a committed order awaiting delivery for a specific period?

Scheduled receipt

When creating a quantitative forecast, data should be evaluated to detect for a repeating pattern of demand from year to year, or over some other time interval, with some periods of considerably higher demand than others. This is known as a?

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

Which inventory stock level is generally used for a very specific purpose or future event, and for a defined period of time?

Strategic Stock

Which of the following statements is TRUE?

Strategic partnerships are seen as one of the foundations of supply chain management

Based on the following diagram, which selection correctly identifies the Manufacturer's Tier 1 supply chain partner(s)? Supplier A => Supplier B => Supplier C => Manfuacturer => Customer C => Customer B => Customer A

Supplier C and Customer C

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?

The Bullwhip Effect

Which of the following is NOT an example of an ordering cost for products purchased from a supplier?

The opportunity cost of not ordering from a least cost supplier

Cause-and-Effect Models can have multiple independent variables

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