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Operations Management > Final Exam > Flashcards

Final Exam Flashcards

1
Q

5 reasons for keeping inventory (LUBES)

A
  1. Managing Lead times
  2. temporing Uncertainty
  3. Buffering processess
  4. Economies of Scale
  5. improving Service levels
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2
Q

Independent Demand

A

Finished Good

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3
Q

Dependent Demand

A

Needs to be assembled. (100 biles = 200 tires)

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4
Q

What is the most important reason for holding inventory?

A

Service level, the probability the item will be in stock when needed.

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5
Q

3 types of inventory

A
  1. Work in progress
  2. Finished Goods
  3. Raw Materials
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6
Q

3 Steps in WIP. Which one brings most value?

Upstream, downstream, core processes?

A
  1. Waiting to be processed
  2. Being processed
  3. Waiting to be moved

most value added #2

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7
Q

Inventory velocity

A

Rate at which firms dispose inventory

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8
Q

Inventory turnover rate

A

COGS / Avg. inventory –> 365 / inventory turnover (days)

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9
Q

2 types of reorder points:

A 
Deterministic Reorder (constant demand)
Stochastic Reorder (variable demand)
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10
Q

Effect of inventory on bottom line

A

even the minor mismanagement of inventory can have a significant impact on the gaps between bottom line, affecting variability as a company.

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11
Q

Firms can do 2 things to improve velocity

A
  1. Reduce Inventory

2. Reduce Amount of time the firm “owns” the inventory (consignment and vendor managed)

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12
Q

Economic Order Quantity (reduces two things)

A
  1. Holding Costs

2. Purchasing Costs

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13
Q

Reorder Point (two things to multiply)

A

Daily Demand and lead time

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14
Q

Inventory makes up how much % of national gross product

A

20-25%

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15
Q

2 competing demands in sales and operations

A

Sales $increasin

operations $ decreasin

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16
Q

8 rights of logistice

A
  1. Product
  2. Time
  3. place
  4. quantity
  5. condition
  6. customer
  7. cost
  8. documentation
17
Q

Lostics cost ___% of a companies revenue and is the ___ highest cost for a company next to COGS

A

10%

2nd

18
Q

4 things that logistics can provide a strategic advantage through

A
  1. Cost
  2. Flow
  3. Access
  4. Sustainability
19
Q

3 fundamental logistics trade-offs

A
  1. Cost to Cost -> slower shipping reduced costs
  2. Model trade offs -> trucks v trains
  3. Cost to service - impoving service costs will cost more money
20
Q

5 modes of transportation

A
  1. maritime
  2. train
  3. truck
  4. air
  5. pipeline
21
Q

Factor rating analysis

A
  1. identify key selector factors
  2. determine weights / relative importance
  3. evaluate
22
Q

2 components to logistics

A

PLACE and TIME

23
Q

5 logistics processes

A
  1. Demand processing
  2. Inventory Management
  3. Transportation
  4. Warehousing
  5. structural Networks
24
Q

3 types of projects

A
  1. Pure projects
  2. matrix organization (most challenging because 2 bosses)
  3. Functional Project organizations
25
Q

Critical path

A

longest path with no slack

26
Q

Demmings 14 Points

A
  1. Consistant purpose
  2. new philospohy
  3. cease inspection
  4. focus total cost
  5. improve the system of production
  6. institute training
  7. leadership
  8. drive out fear
  9. break down barriers between departments
  10. eliminatr slogans, exhortations
    11.
    12.
  11. institute a vigorous program of education and self improvement
  12. put everybody in the company to work to accomplish the transformation.
27
Q

Gavins 8 points

pda’s

prfc

A
  1. Performance
  2. Durability
  3. Aesthetics
  4. Serviceability
  5. percent quality
  6. Reliability
  7. Features
  8. conformance
28
Q

ISO 9000

A

global standard for quality

29
Q

6 Types of Benchmarking

A
  1. Process
  2. Financial
  3. Performance
  4. Product
  5. Strategic
  6. Functional
30
Q

5 phases of 6 sigma

A
  1. Define
  2. Measure
  3. Analyze
  4. Improve
  5. Control
31
Q

EOQ

A

economic ordering qualtity.

square root of (2DS/H)

2 x demand x order or setup costs

divided by holding costs

Operations Management (2 decks)

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