FINAL EXAM Flashcards
Between a buyer and a seller, as time increases seller inventory goes ____________ as buyer inventory goes __________
Between a buyer and a seller, as time increases seller inventory goes up as buyer inventory goes down
True or False: your largest revenue customers are often your least profitable
True
ATD v. ATP
ATD - available to deliver, in dc ready to ship
ATP - available to promise, not yet in dc expecting shipment
As OCT increases, seller inventories __________ and buy inventories __________
As OCT increases, seller inventories decreases and buyer inventories increase
Why? Customer wait time - don’t have products = longer wait time
As service level increases, cash flow loss ________ and inventory _________
As service level increases, cash flow loss decreases and inventory increases
Internal things you can control that effect supply and demand
production flexibility
inventory quantity
External things you can control that effect supply and demand
price
leadtime
Good forecasts are a _______
good forecasts are a range of numbers
aggregate definition
a whole combined from several parts
ex. caps for gatorade all the same even though the flavors change
Aggregate forecasts are more accurate because they are larger numbers
Simple moving averages don’t account for
Simple moving averages don’t account for season, trend or business cycle
The more a line can make of a single item, the ______ the cost per unit but ________ total cost
The more a line can make of a single item, the lower the cost per unit but higher total cost
As service levels increase, inventory ________ at a _______ rate
As service levels increase, inventory increases at an increasing rate
OSD stands for ___________, _____________, and _________
Obsolescence, Shrinkage, and Damage
As volume (order size) increases, cost per order _________.
As volume (order size) increases, cost per order stays the same
As volume (order size) increases, total order costs ________
As volume (order size) increases, total order costs increase
