Supply Chain Quizzes 1-4

Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactures by the organizaition

false

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

Mean Absolute Deviation

The goal of supply chain planning is to balance supply and demand in a way that realized the financial 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 Qualitative forecasting method is based on opinion & intuition

True

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

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, and Replenishment

Collaborative Planning, Forecasting, and Replenishment is the process of combining statistical forecasting techniques and judgement to construct demand estimates 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 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

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 patter.

False

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

False

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

MRP Explosion

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

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

Case-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

Supply Chain Management stats with understanding the flow.

True