Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Supply Chain Management > Final > Flashcards

Final Flashcards

1
Q

The planning and controlling of inventories to meet the competitive priorities of the organization.

A

Inventory Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Simple definition: quantities of goods in stock

A

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Materials and supplies that a firm carries either to sell or to provide inputs or supplies to the production process is known as

A

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 6 distinctive characteristics of service operations

A

Customer Participation
Simultaneity
Perishability
Intangibility
Heterogeneity
Nontransferable Ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which distinctive characteristic deals with the attention to facility design, opportunities for co-production

A

Customer Participation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which distinctive characteristic deals with services created and consumed simultaneously, cannot be stored

A

Simultaneity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which distinctive characteristic deals with cannot inventory, opportunity loss of idle capacity, need to match supply with demand

A

Perishability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which distinctive characteristic deals with services are ideas and concepts, service innovations are not patentable, franchising, importance of reputation

A

Intangibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which distinctive characteristic deals with customer involvement in delivery process results in variability

A

Heterogeneity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What distinctive characteristic deals with services do not involve transfer of ownership

A

Nontransferable Ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

T/F- “Inventories” in services are often intangible and cannot be stored

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is an example of service inventory?

A

Inventory in an emergency room would be people waiting
OR
Seats available in a classroom or theater

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the 2 forms of Inventories?

A

Accounting
Operational

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

T/F- Manufacturing Inventory falls under the category of Accounting Inventories

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are three ways that manufacturing inventories can be identified by?

A

Raw Materials- purchased items received, but not yet transformed

Work-in-process - Raw materials that have entered the transformation process & are in process or waiting

Finished Goods- Finished products of the transformation process that are ready to be sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Explain the chocolate chip cookie example for manufacturing inventory

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which type of inventory is not readily visible?

A

Operation Inventories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the characteristics of operational inventories

A

Cycle Stock (Q/2)
Safety Stock
Anticipation Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is cycle stock?

A

Inventory for immediate use
typically produced in batches (production cycle)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Inventory for immediate use
typically produced in batches (production cycle) is known as

A

Cycle Stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is safety stock?

A

Extra inventory carried for uncertainties in supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Extra inventory carried for uncertainties in supply and demand is known as

A

Safety Stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

T/F- Safety stock is also referred to buffer stock

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is anticipation inventory?

A
  • inventory carried in anticipation of events
  • smooth out the flow of products in supply chain
  • also called “seasonal” or “hedge” inventory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Inventory carried in anticipation of events and help smooth out the flow of products in supply chain is known as?

A

Anticipation Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

T/F- Anticipation inventory is also called “seasonal” or “hedge” inventory

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the characteristics of Pipeline Inventory?

A
  • Inventory in transit
  • exists because points of supply and demand are not the same
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

T/F- Pipeline inventory is also called “transportation” inventory

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What are 5 pressures for large inventories or why should firms carry inventory?

A

1) Protect against lead time demand
2) Maintain independence of operations
3) Balance supply and demand
4) Buffer uncertainty, i.e. “Safety Stock”
5) Economic purchase orders, i.e. buying in bulk to take advantage of reduced cost/unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the 6 pressures for small inventories or why should firms NOT carry inventory?

A

1) Inventory holding cost
2) Cost of capital
3) Storage and handling costs
4) Taxes
5) Insurance
6) Shrinkage
- Pilferage
- Obsolescence
- Deterioration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the three types of inventory costs?

A

Holding Cost
Ordering Cost
Shortage Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which costs vary with the amount of inventory held and are typically described as a % of inventory value

A

Holding Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

T/F- Holding Cost is referred to as carrying cost

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Which costs are involved in placing an order and are inversely related to holding cost

A

Ordering Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

T/F- Ordering costs are also referred to as “setup” cost

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

This cost occurs when the company runs out of stock

A

Shortage Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

A methodology to help us understand inventory policy

A

Inventory System

38
Q

The inventory policy addresses two questions concerning the replenishment of inventory: What are the two questions?

A

1) When should an order be placed?
2) How much should be ordered?

39
Q

What are the two common inventory systems that help answer the questions “when and how much”

A

1) Fixed-Order Quantity System (Q System)
2) Fixed- Time Period System (P System)

40
Q

An order of fixed quantity is placed when inventory drops to a reorder point, ROP

A

Fixed- Order Quantity System

41
Q

When inventory is checked in fixed time periods, T, and the quantity ordered varies this is referred to as

A

Fixed-Time Period System (P System)

42
Q

An order is only placed when inventory drops to a specified level, this is known as

A

Reorder Point (ROP)

43
Q

The amount requested in each order placed will always be the same quantity. This is known as

A

Quantity (Q)

44
Q

T/F- The time interval between order changes from order to order

A

True

45
Q

An order is placed every “T” time periods. What does T stand for

A

Known as fixed time intervals
—the time between orders is exactly the same from order to order

46
Q

T/F- In a Fixed-Time Period System or P System, the amount requested in each order placed will vary and is based on refilling back up to the target inventory level “R”

A

True

47
Q

T/F- Inventory policy is based on the type of demand

A

True

48
Q

What are the two types of demands?

A

Independent and Dependent

49
Q

Demand for a finished product is known as

A

Independent Demand

50
Q

Demand for components parts or subassemblies is known as

A

Dependent Demand

51
Q

What is one example of Demand

A

1 finished Tesla (independent) requires 4 tires (dependent)

52
Q

The relationship between independent and dependent demand is shown in a?

A

Bill of Materials (BOM)

53
Q

An inventory control system that is used to compute order quantities for dependent demand inventory items. This is known as

A

Materials Requirements Planning (MRP)

54
Q

T/F- MRP relies heavily on manual input from their users to create production schedules

A

True

55
Q

A list that shows all of the raw materials and subassemblies that go into a product. It also shows the quantities and relationships of items needed to make a final product. This is known as

A

Bill of Materials

56
Q

A large software program used for planning and coordinating all resources throughout the entire enterprise

A

Enterprise Resource Planning (ERP)

57
Q

This system calculates quantities of dependent demand items to complete the independent demand order. This also factors in lead times for each dependent demand item

A

MRP System

58
Q

Dependent demand order quantities are calculated automatically by what kind of system

A

MRP System

59
Q

What calculated inventory systems are designed for use with independent and dependent demand

A

Q and P System

60
Q

What is the acronym for EOQ

A

Economic Order Quantity

61
Q

Which formula provides the ideal quantity to be purchased that minimizes Total Cost?

A

EOQ Formula

62
Q

1)What is minimized when the ordering cost equals the holding cost.
2) At this intersection that the optimal value of What is revealed

A

1)Total Cost
2) EOQ or “Q”

63
Q

What is the formula for Total Cost

A

(Q/2) H + (D/Q) S

64
Q

What is the formula for holding cost?

A

(Q/2) H

65
Q

What is the formula for total ordering cost?

A

(Q/2) S

66
Q

How do you determine how many orders will be placed in one year?

A

Demand divided by Q

67
Q

In what kind of system, a quantity “Q” is determined when an order is to be placed by comparing the current inventory level to a predetermined Target Inventory value

A

P System

68
Q

The Target Inventory level “R” is determined by

A

R= demand during lead time + demand during the review period

69
Q

The order quantity in a P system is then determined by

A

Q=R- IP

70
Q

The formula for inventory position is?

A

IP= OH + SR -BO
Inventory Position= On hand inventory + scheduled receipts - backorders

71
Q

Go to slide 8- 15 on part 4 to work problem

A
72
Q

The process of dividing
SKUs into three classes,
according to their dollar
usage, so that managers
can focus on items that
have the highest dollar
value.

A

ABC Analysis

73
Q

When total cost changes little on either side of the EOQ
-managers can adjust to accommodate needs
What term is described?

A

EOQ Adjustments

74
Q

Storage capacity and costs should be considered when ordering large quantities. This is known as

A

Capacity Constraints

75
Q

What is the formula for weeks of supply?

A

Average on-hand inventory divided by
average weekly usage

76
Q

What is the formula for inventory turns

A

D/ (Q/2+SS)

77
Q

Given a fixed-order quantity model with:
Annual Demand (D) = 1,000 units
Order Quantity (Q) = 250 units
Safety Stock (SS) = 50 units

What is the Average inventory?

A

Q/2 + SS
= 250/2+50 = 175 units

78
Q

Given a fixed-order quantity model with:
Annual Demand (D) = 1,000 units
Order Quantity (Q) = 250 units
Safety Stock (SS) = 50 units

What is the Inventory Turn?

A

= D/ (Q/2+SS)
= 1,000 /175= 5.71 turns

79
Q

What does VMI stand for?

A

Vendor Management Inventory

80
Q

T/F- VMI arrangements have the vendor responsible for managing the inventory located at a customer’s facility

A

True

81
Q

What job is charge of
stocking inventory
placing replenishment orders
arranges displays
owns inventory until purchased
and is required to work closely with customers

A

Vendors

82
Q

What is SCOR?

A

Supply Chain Operations Reference

83
Q

A management tool used to address, improve, and communicate supply chain management decisions within a company, with their suppliers, and with their customers
This is known as?

A

SCOR

84
Q

A model that describes the business processes required to satisfy customer’s demands

A

SCOR Model

85
Q

SCOR is a framework that focuses on six areas of the supply chain. What are the 6 areas?

A

Plan
Source
Make
Deliver
Return
Enable

86
Q

This term is defined as “a basic structure underlying a system, concept, or text.”

A

Framework

87
Q

T/F- SCOR is a process framework

A

True

88
Q

Process frameworks deliver the known concepts of (4)

A
  • business process reengineering
    -benchmarking
    -best practices
    -organizational design in a cross-functional framework
89
Q

This form of process: Plan Source, Make and Deliver

A

Standard Process

90
Q

This framework does Perfect Order Fulfillment, Cash-to-Cash Cycle Time, Total Cost
to Serve

A

Standard Metrics

91
Q

What type of practices make up EDI, CPFR, S&OP, and Cross-training

A

Standard Practices

Supply Chain Management (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions