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