Supply Chain Exam 1

What are the two basic Supply Chain Capability Models?

Efficient Model and Responsive Model

True or False: Exponential smoothing is always the best and most accurate of all forecasting methods.

False

True or False: Forecasts are more accurate the farther out into the future that you forecast.

False

True or False: Sales and Operations Planning (S&OP) is typically performed about every 3 to 18 months.

False

True or False: Service firms offer intangible products, therefore, they do not have a supply chain.

False

True or False: The process of combining statistical forecasting techniques and judgement to conduct demand estimates for products or services is known as Collaborative Planning, Forecasting and Replenishment.

False

True or False: The term "logistics" refers to a network of independent companies that work together and coordinate their actions to deliver products or services to the market for the benefit of all companies in the network.

False

True or False: To handle a fluctuating demand pattern, the Level Production strategy adjusts the production rate and capacity to exactly match demand.

False

True or False: When a company utilizes a "make-to-stock" strategy, the company is also said to be using a "pull" business model.

False

The goals of Supply Chain Management are to?

Increase customer satisfaction while reducing inventory and operating expenses

What are the four foundational areas of supply chain management?

Operations management, Supply Management, Logistics Management and Integration

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 QUALITATIVE and QUANTITATIVE forecasting techniques?

Qualitative forecasting is based on opinion and intuition, while quantitative forecasting uses information from mathematical models and historical data.

What is supply chain management?

The coordination of the network of otherwise independent trading partners who are creating a product or service and moving it through the supply chain and out to the customers.

True or False: Dependent 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.

True

True or False: Time Series forecasting models make predictions about the future based on analysis of past data.

True

True or False: To handle a fluctuating demand pattern, the Chase Production strategy adjusts the production rate and capacity to exactly match demand.

True

Which of the following is NOT one of the basic types of forecasting? a. Force Field Analysis b. Time Series c. Qualitative d. Cause and Effect

a. Force Field Analysis

______________ 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. a. Mean Absolute Deviation b. Mean Absolute Percent Error c. Running Sum of Forecast Errors d. Mean Squared Error

a. Mean Absolute Deviation

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? a. Level production strategy b. Chase production strategy c. Hybrid production strategy

b. Chase production strategy

When a supply chain planner talks about using the BOM to do an MRP explosion, they are talking about? a. Relating gross requirements for a component part to the planned order releases of the parent item b. The process of converting a parent item's planned order releases into component gross requirements c. The demand for final products that are affected by trends, seasonal patterns, and general market conditions d. When the supplier will use Value Analysis and disassemble the part to see how it's made

b. The process of converting a parent item's planned order releases into component gross requirements

Which of the following is NOT a benefit of supply chain management? a. Increased revenue b. Improved customer service c. Increased inventory d. Lower costs e. Better asset utilization

c. Increased Inventory

When creating a quantitative forecast, if you detect a repeating pattern of demand data from year to year with some periods of considerably higher demand than others, what type of variation are you observing? a. Random variation b. Cyclical variation c. Seasonal variation d. Trend variation

c. Seasonal variation

Which of the following terms used in MRP represents the parts demanded by a parent? a. Gross requirement b. Scheduled receipt c. Net requirement d. Component

d. Component

Which of the following is NOT one of the four foundations of supply chain management? a. Logistics Management b. Supply Management c. Demand Management d. Operations Management e. Integration

c. Demand Management

Define Sales and Operations Planning (S&OP)

A process used to develop tactical plans that provide management with the ability to strategically direct the business to achieve a competitive advantage on a continuous basis. This is done by integrating customer-focused marketing plans for new and existing products with the management of the supply chain.

What is the term used to relate the requirements for a component part back to its parent item? It can be thought of as determining where a component item is used. a. Pegging b. Planning factor c. Lot size d. Net requirement e. Time bucket

a. Pegging

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? a. Scheduled receipt b. Net requirements c. Time bucket d. Projected on-hand inventory

a. Scheduled receipt

What does the Master Production Schedule represent? a. What the company plans to produce b. The component parts and materials required to manufacture a product c. The maximum amount the company can produce in any time period d. What the customer wants

a. What the company plans to produce