In adaptive forecasting, the estimates of level, trend, and seasonality are updated after
each demand observation.
The procurement process for indirect materials should focus on decreasing the
transaction cost for each order.
A key to reducing cycle inventory is the reduction of lot size.
Supply chain strategy specifies what the operations, distribution, and service functions,
whether performed in-house or outsourced, should do particularly well.
Qualitative forecasting methods are most appropriate when there is good historical data
available or when experts do not have market intelligence that is critical in making the
forecast.
In volume-based tailored sourcing, the predictable part of a product’s demand is
produced at a flexible facility, whereas the uncertain portion is produced at an efficient
facility.
A distributor makes investment decisions regarding the transportation infrastructure and
then makes operating decisions to try to maximize the return from these assets.
The expected shortage per replenishment cycle(ESC) is the average units of demand
that are satisfied from inventory in stock per replenishment cycle.
In general, as the fraction of increased demand coming from forward buying grows,
offering the promotion during the peak demand period becomes more attractive.
A poor aggregate plan may result in a large amount of excess inventory and capacity,
thereby raising costs.
Lot sizes and cycle inventory do not affect the flow time of material within the supply
chain.
A focus on sustainability allows a supply chain to better serve more environmentally
conscious customers while often improving supply chain performance.
Mature products with stable demand are usually the most difficult to forecast.
Single sourcing for a product is used to
A) guarantee the supplier sufficient business when the supplier has to make a
significant buyer-specific investment.
B) ensure a degree of competition.
C) ensure the possibility of a backup should a source fail to deliver.
D) control all possible sources of supply in the market.
Toyota’s global complementation strategy
A) calls for plants to be devoted to the production of vehicles for only the local market.
B) dictates that parts plants be built to supply all of the needs for each vehicle
production plant worldwide.
C) requires that a single parts plant, for example, for brakes, export brake components
to all of its vehicle assembly plants worldwide.
D) mandates that plants can produce vehicles for export to markets that remain strong
when the local market weakens.
The tactic of overbooking or overselling the available asset is suitable where
A) there is a clear date beyond which the asset loses a lot of its value.
B) there is no clear date beyond which the asset loses a lot of its value.
C) customers are able to cancel orders and the value of the asset drops significantly
after a deadline.
D) customers are unable to cancel orders and the value of the asset drops significantly
after a deadline.
Using the output from supplier scoring and assessment to identify the appropriate
supplier(s) is
A) procurement.
B) sourcing.
C) supplier scoring and assessment.
D) supplier selection.
Supply chain network design decisions classified as facility role are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each
facility.
Historical demand for Peeps is as displayed in the table.
What is the level component of Holt’s model for period 0?
A) -2.5
B) 10.3
C) 2.5
D) 6.4
Customers substituting the firm’s product for a competitor’s product is
A) market growth.
B) stealing share.
C) forward selling.
D) forward buying.
The entire set of business processes required to purchase goods and services is
A) procurement.
B) sourcing.
C) supplier scoring and assessment.
D) supplier selection.
The disadvantage of using a(n) ________ measure is that a drop in supply chain sales
and production (for example in a downturn) will show an improved absolute measure of
energy consumption even though the company may not have changed anything.
A) scope
B) relative
C) absolute
D) statistical
Lead timeis the gap between
A) when an order is placed and when it is received.
B) when an order is received and when it is put away.
C) when an order is received and when it is used.
D) when an order is acknowledged and when it is received.
The probability of having a product in stock when a customer order arrives is
A) response time.
B) product variety.
C) product availability.
D) customer experience.
Cheaper modes of transport typically have
A) shorter lead times and smaller minimum shipment quantities.
B) shorter lead times and larger minimum shipment quantities.
C) longer lead times and smaller minimum shipment quantities.
D) longer lead times and larger minimum shipment quantities.
Periodic review policies for inventory replenishment require safety inventory to cover
demand during
A) lead time only.
B) the review interval only.
C) both lead time and the review interval.
D) neither lead time or the review interval.
The main advantage of in-transit merge over drop-shipping is
A) the ability to reduce cost of inventory by centralizing inventories at the
manufacturer.
B) supply chains save on the fixed cost of facilities, because the need for other
warehousing space in the supply chain has been eliminated.
C) somewhat lower transportation cost and improved customer experience.
D) order tracking is easy to implement because of the complete integration of
information systems at both the retailer and the manufacturer.
The tenured professor routinely led student groups on factory tours in exotic locales,
and one popular destination was an island south of Miami. The students enjoyed this
happy little island and the professor liked it because he could supplement his income by
bringing back a few boxes souvenirs he could sell to his friends. The souvenirs cost the
professor $125 a box and he sells them for $290 a box. Souvenirs that dry out due to
age can be sold for $80. Experience has shown that the demand for boxes of these
souvenirs has a mean of 80 with a standard deviation of 20.
What is the optimal quantity of boxes for the professor to bring back home to sell to his
friends?
A) 88
B) 74
C) 96
D) 82
In most instances, CRP systems are driven by
A) the withdrawal of inventory from distributor warehouses.
B) the withdrawal of materials from supplier warehouses.
C) the withdrawal of goods customer pantry shelves.
D) the withdrawals of inventory from retailer warehouses.
Trading partners collaborate on store-level POS forecasts in
A) store replenishment collaboration.
B) DC replenishment collaboration.
C) retail event collaboration.
D) collaborative assortment planning.