ALL Flashcards
1
Q
The real value of CPFR comes from the
A
sharing of forecasts among firms, rather than firms relying on sophisticated algorithms and forecasting models to estimate demand.
2
Q
Collaborative Planning, Forecasting, and Replenishment (CPFR) is a
A
business practice that combines the intelligence of multiple trading partners who share their plans, forecasts, and delivery schedules with one another in an effort to ensure a smooth flow of goods and services across a supply chain.
3
Q
How can the Bullwhip Effect be Alleviated?
A
collaboration, synchronizing the supply chain, reducing inventory
4
Q
The Bullwhip Effect: When the new demand reaches the material or components supplier at the other end of the supply chain…
A
, the magnitude of fluctuation becomes unrecognizable.
5
Q
Forecasts are based on statistics, and they are rarely 100% accurate, therefore, companies often carry an inventory buffer called
A
safety stock
6
Q
In the absence of any other information or visibility, individual supply chain participants are
A
second-guessing what is happening with ordering patterns, and potentially over-reacting, creating the bullwhip effect.
7
Q
A _____ RSFE indicates that the forecasts were generally too low, underestimating the demand.
A
positive
8
Q
A _____ RSFE indicates that the forecasts were generally too high, overestimating demand.
A
negative
9
Q
Forecast Bias is a _____ from the mean in one direction; either high or low.
A
consistent deviation
10
Q
A best practice is to measure for forecast bias _____ and then make corrections accordingly.
A
routinely
11
Q
Mean Squared Error (MSE) magnifies the errors by _____ each one before adding them up and dividing by the number of forecast periods.
A
squaring
12
Q
Mean Absolute Percent Error (MAPE) measures the size of the error in percentage terms. It is calculated as the _____
A
average of the unsigned percentage error
13
Q
Mean Absolute Deviation (MAD) measures the
A
size of the forecast error in units
14
Q
companies need to track the forecast against actual demand and measure the size and type of the forecast error because…
A
forecasts are almost always inaccurate
15
Q
Error measurement plays a critical role in
A
tracking forecast accuracy, monitoring for exceptions, and benchmarking the forecasting process.
16
Q
Analysis of social sentiment can be used to:
A
evaluate the health of a brand, improve demand prediction, Address a crisis, Research the competition
17
Q
Today, the best practice for forecasting is a combination of
A
qualitative and quantitative
18
Q
When you have to make a ______ it’s likely that you will be adding some bias to the forecast.
A
range of assumptions
19
Q
Technology is not the answer; _____ to help you make the forecast better.
A
its a tool
20
Q
_____ helps identify mistakes and smooths out inconsistencies over time.
A
regular use of data
21
Q
Many factors will _____ you’re trying to forecast.
A
affect the pattern
22
Q
When creating a quantitative forecast, if you detect a pattern of demand data that shows a movement of a variable over time. This is known as what type of variation?
A
trend variation
23
Q
T/F Collaborative Planning, Forecasting, and Replenishment is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services.
A
false, this is demand planning
24
Q
Which one of the following is NOT a type of qualitative forecasting?
A
Linear trend
25
T/F Exponential smoothing is always the best and most accurate of all forecasting methods.
false
26
T/F Historical Analogy is a quantitative method of forecasting.
false; historical demand data is
27
T/F Forecasts generally become less accurate the farther out into the future that you forecast.
true
28
Dependent demand items are generally forecasted based on market conditions and/or historical sales and usage data
false
29
The first step in understanding the supply chain is to visualize _____ from beginning to end
the flow of materials
30
Supply Chain Management is
It is the coordination of the network of otherwise independent trading partners, creating a desired product or service, and moving it from suppliers, through manufacturing, and out to customers when and where they want it.
31
Supply Chain Management creates _____ by managing the processes of all of those independent trading partners
value
32
Service products cannot generally be produced in
advanced or inventoried
33
Services are typically _____, and in almost every service offering, the service cannot start until the customer arrives and actively participates
produced and consumed simultaneously
34
Many services require the use of _____ which are tangible elements that are used along with the service provided.
Facilitating Goods
35
Supply chains are generally described as _____ i.e., from your suppliers-suppliers on one end, through your internal operations, and out to your customers-customers on the other end
spanning from end-to-end
36
Planning establishes the _____ within which the supply chain will operate
parameters
37
Sourcing is the process of _____ that provide the materials and services needed for the supply chain to deliver the finished product(s) desired by the customer(s).
identifying the suppliers
38
Make or manufacturing is the series of operations performed to convert _____
materials into a finished product
39
Deliver, also known as the _____ phase, this is the part of supply chain management that oversees the planning and execution of the _____
logistics, forward flow of goods
40
Return, also known as _____, this is the part of supply chain management that deals with planning and controlling the process of _____ specifically from the point of consumption _____ for repair, reclamation, remanufacture, recycling, or disposal.
reverse logistics, moving goods, back to the point of origin
41
Enabling processes _____ a company’s ability to _____ and are spread throughout every stage.
facilitate, manage the supply chain
42
Manufactures were _____ on maximizing their own internal operations.
internally focused
43
production planning
manufacturing output to best satisfy the planned level of sales
44
Material Requirements Planning
a time-phased method of determining what materials are needed and when they are needed
45
Manufacturing Resource Planning
a method for the effective planning of all resources of a manufacturing company
46
Just-in-Time (JIT)
planned elimination of all waste and continuous productivity improvement.
47
Total Quality Management (TQM)
improving processes, goods, services, and the culture in which they work
48
Sales and Operations Planning (S&OP)
strategically direct the business. The S&OP process can be broken down into six essential steps: data gathering and forecasting, demand planning, production planning, pre-SOP meeting, executive S&OP meeting, and the S&OP strategy implementation.
49
Collaborative Planning, Forecasting and Replenishment (CPFR)
jointly plan key supply chain activities
50
Business Process Reengineering (BPR)
redesign of business processes to achieve dramatic organizational improvements
51
Accelerated pace of change driven by the
explosion of e-commerce
52
Process Management
using LEAN Manufacturing to improve the flow of materials and eliminate waste in the process, and using Six Sigma to improve quality compliance across all suppliers
53
International Trade Management
the exchange of goods and services _across international borders_ or territories.
54
Service Response Logistics
the management and coordination of the company’s activities that occur while the service is being performed.
55
Performance Measurement
the system for collecting, measuring, and comparing a _measure to a standard_ for a specific criterion for an operation, item, service, business, etc.
56
2 Basic Supply Chain Capability Models
efficient model and responsive model
57
World class _____ begins with effective supply chain planning and control techniques which:
operational excellence (provides single set of numbers)
58
As the supply chain continues to evolve, it's critical for companies to
adapt to emerging technologies and strategies
59
Logistics labor shortages will continue through 2020 and beyond so
Wages will continue to rise due to demand.
60
Warehouses are increasing adoption of automation such as _____ to meet the requirements of direct-to-consumer fulfillment.
autonomous mobile robots (AMR)
61
where the forecast is developed through data analysis and judgement
forecasting
62
which is the process of combining statistical forecasting techniques and/or judgment to construct demand estimates for products or services
demand planning
63
need for a particular product or component
demand
64
qualitative is used when data is
limited, unavailable, or not currently relevant
65
The Delphi Method can be
time-consuming and is therefore best for long-term forecasts.
66
history that is comparable
Historical Analogy
67
Random variations are frequently consider to be
abnormal demand
68
time series forecasting can be characterized as the act of
predicting the future by understanding the past
69
Naïve Forecasting
Sets the demand for the next time period to be exactly the same as the demand in the last time period
70
Simple Moving Average
Uses a calculated average of historical demand during a specific number of the most recent time periods to generate the forecast
71
Weighted Moving Average
similar to a simple moving average except that not all time periods are valued/weighted equally
72
Exponential Smoothing
Requires 3 basic elements: last period’s actual demand, last period’s forecast, and a smoothing factor, which is a number greater than 0 and less than 1
73
Linear Trend Forecasting
is imposing a best fit line across the demand data of an entire time series
74
Regression uses the _____ between an independent and a dependent variable to predict the future values of the dependent variable, i.e., demand
historical relationship
75
Multiple Linear Regression
attempts to model the relationship between two or more independent variables and a dependent variable (demand) by fitting a linear equation to the observed data
76
a _____ forecast for an item is likely to be more accurate than the individual _____ forecasts for that item
national, regional
77
Mean Absolute Deviation (MAD) formula
find deviation from subtracting forecast from actual- this will give you the absolute deviation (get rid of negatives bc absolute). add these totals up and divide by amount of #s
78
Supply Chain Planning's objective is
to _balance supply and demand_ in a way that realizes the financial and service objectives of the company
79
A major principle of supply chain management is the use of a
_standardized_ and __stepwise_ approach
80
Supply chain planning is usually ______ and can be divided into three broad categories
hierarchial; long range, intermediate range, and short range
81
business plans are typically updated and _____ usually during the annual budgeting cycle
reevaluated annually
82
The planning horizon of APP is at least one year and is usually rolled forward by _____
three months every quarter
83
Aggregate Planning purpose
to _establish production rates_ that will achieve management’s objective of satisfying customer demand by maintaining, raising, or lowering inventories, while attempting to keep the workforce relatively stable.
84
Steps to Develop the Aggregate Production Plan
Determine the demand, Determine the available capacity, Identify any constraints
85
Demand Adjustments
influencing demand, backordering, counter-seasonal product mixing
86
Supply Adjustments
Change inventory levels, Change capacity
87
A process to develop tactical plans that provides management the ability to _____ 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.
S&OP, strategically direct the business
88
Sales & Operations Planning (S&OP) is typically performed _____ and is reviewed by management at an _____
once a month, aggregate (product family) level
89
Sales & Operations Planning (S&OP) is the definitive statement of the company’s plans for the _____
near to intermediate term
90
Sales & Operations Planning (S&OP) Covers a horizon _____ and to support the annual business planning process.
sufficient to plan for resources
91
The Master Production Schedule (MPS) represents what the company _____ expressed in specific product configurations, quantities, and dates.
plans to produce
92
Master Production Schedule (MPS) represents what the business _____ not necessarily what the customer wants.
plans to achieve
93
Available-to-Promise (ATP) represents the _____ portion of a company’s projected available inventory to support customer order promising
uncommitted
94
_____ Time Period: From the current date out several weeks into future
firmed
95
_____ Time Period: From the end of the Firmed Time Period to the end of the planning horizon.
planned
96
_____ maintains a constant production rate and allows inventory and backlog to vary according to fluctuating demand.
level production strategy
97
_____ adjusts the production rate and capacity to exactly match demand.
chase production strategy
98
_____ sets a baseline production rate based on a stable core workforce, and then uses other short-term means, such as overtime, subcontracting and part-time labor to manage short-term fluctuations in demand.
hybrid production strategy
99
A computer-based materials management tool that calculates the exact _________, _________, and ___________________for all the component parts and materials required to manufacture a product.
quantities, need dates, and planned order releases
100
Bill of Materials (BOM)
document that shows an inclusive listing of all raw materials, component parts, and assemblies making up the final product.
101
__________Bill of Materials - Display of components that are directly used in a parent item, together with the quantity required of each component (i.e., the planning factor). Shows only the relationships one level down
single level
102
__________Bill of Materials - A display of all the components directly or indirectly used in a parent, together with the quantity required of each component (i.e., the planning factor).
multilevel
103
___________Demand - The external demand for an item that is unrelated to the demand for other items
independent
104
____________Demand - the internal demand for items that are assembled or combined to make up the final product
dependent
105
A time-phased requirement prior to netting out on-hand inventory and lead-time
Gross requirement
106
The unsatisfied item requirement for a specific time period. Gross requirement for period minus current on-hand inventory
Net requirement
107
Projected closing inventory at end of a period. Beginning inventory minus gross requirements, plus scheduled receipts plus planned receipts from planned order releases.
Projected Available Inventory
108
A specific order for a specific item and quantity to be released to the shop or to the supplier.
Planned Order Release
109
A planned order that can be frozen in quantity and time so that the MRP computer logic cannot automatically change when conditions change. Established by the Planner or Supply Chain Manager to prevent system nervousness. This can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders.
Firmed Planned Order
110
A committed order awaiting delivery for a specific period
Scheduled Receipt
111
The time it takes to process and prepare material, produce the product, and transport it to the customer
Lead time
112
Unit of time / time period used in MRP, e.g., days, weeks, months
Time bucket
113
Item generating demand for lower-level components
Parent
114
parts demanded by a parent
Components
115
The number/quantity of each component or material needed to produce a single unit of the parent item
Planning factor
116
The process of converting a parent item’s planned order releases into component gross requirements
MRP Explosion
117
Relates the gross requirements for a component part to the planned order releases of the parent item, so as to identify the source(s) of the item’s gross requirements. ____ can be thought of as active where-used information.
Pegging
118
order size for MRP logic
Lot Size
119
a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. Over planning supply versus demand can be used to create _____
safety stock
120
the process of determining the amount of production capacity needed by an organization to produce the goods or services required by its customers
capacity planning
121
Organizations must balance the _________________________. This directly impacts how effectively the organization deploys its resources in producing goods.
production plan with capacity
122
A long-range capacity planning module used to check whether aggregate resources (i.e., labor and manpower) are capable of satisfying the Aggregate Production Plan
Resource Requirement Planning (RRP)
123
A medium-range capacity planning module used to check the feasibility of the Master Production Schedule. Converts MPS from the production needed, to the capacity required, then compares it to capacity available
Rough-Cut Capacity Planning (RCCP)
124
A short-range capacity planning module used to check the feasibility of the Material Requirements Plan.
Capacity Requirement Planning (CRP)
125
A time-phased finished good inventory replenishment plan in a distribution network
distribution requirement planning
126
______ is a manufacturing management process by which ________ and __________are optimally allocated to meet demand
Advanced Planning and Scheduling (APS), resources, capacity
127
_____ is an information system connecting all the _______ _________________of an organization via common software infrastructure and database
Enterprise Requirements Planning Systems (ERP), functional areas and operations
128
_____ pick the best application for each individual function. Disadvantage - software may not integrate well but this may not be a major issue in future
Best-of-breed
129
_____ pick all the desired applications from a single vendor
Single integrator solution
