Supply chain
2 Basic Supply Chain Capability Models
1 Efficient -minimize cost Ideal for Functional Products 2. Responsive- respond quickly Ideal for innovative products
true
Cause-and-Effect Models can have multiple independent variables
false
Collaborative Planning, Forecasting, and Replenishment is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services
False
Forecasts are more accurate the farther out into the future that you forecast
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
Obsolete Inventory
Inventory that can no longer be sold because the product has expired, been redesigned, was over-ordered, or is at the end of its product life.
True
It was intense global competition that led manufacturers to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT).
1950s-1960s
Manufactures were _internally focused___on maximizing their own internal operations.
MRP II
Manufacturing Resource planning ) helps to improve __internal communication and operations -plan and execute product inventory, people, and facilities
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.
MRP
Material Requirements Planning (MRP) is a method of determining what __materials are needed and when_ they are needed to support the production plan.
False
Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain.
True
Supply Chain Management starts with understanding the flow.
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.
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
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
true
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods.
Flase
The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs.
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.
false
The lowest inventory level at which a new order must be placed to avoid a stockout is known as the Replenishment Threshold
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.
false
There are no inventories in the service industry
Quantitative
based on mathematical modeling, objective and consistent, and can handle large amounts of data
Qualitative
based on subjective opinions; often called judgmental methods
Pipeline Inventory
inventory that is in transit between suppliers and customers
Safety Stock
inventory to protect against fluctuations in demand or supply
The Foundations of Supply Chain Management
operations management supply management logistics management integration
Cycle Stock
satisfy its' immediate demand.
2000 ABOVE
time when companies focused on relationships, sustainability, and social responsibility
1980s-1990s
time when global competition pushed manufacturing to SCM, JIT, TQM, and BPR
1960s-1970s
time when introduction of computers developed MRP and MRPII
Strategic Stock
very specific purpose or future event, and for a defined period of time