Final Exam

Question 1

Profit margin=

Answer 1

Earnings/sales

Question 2

Return on assets

Answer 2

Earnings/assets

Question 3

Pretax earnings increase by $____, sales would have to increase by $_____

Answer 3

Number in cogs, number in cogs/old profit margin

Question 4

Make vs buy decision

Q=?

Answer 4

Fixed cost/Price - Variable Cost

Question 5

Portfolio analysis
High number of suppliers
Low value

Answer 5

Bottleneck
“problems”
Ensure access to supply

Question 6

Portfolio analysis
Low number of suppliers
Low value

Answer 6

Routine
“genetics”
Simplify process

Question 7

Portfolio analysis
High number of supplier
High value

Answer 7

Critical
“strategies”
Form partnerships

Question 8

Portfolio analysis
Low number of suppliers
High value

Answer 8

Leverage
“commodities”
Use purchase power

Question 9

Single sourcing

Answer 9

All from one supplier

Question 10

Multiple sourcing

Answer 10

Splitting. Between more then 2 suppliers

Question 11

Dual sourcing

Answer 11

Two sources

Usually something like 75%-25%

Question 12

Qualitative criteria to evaluate suppliers include:

Answer 12

Process and design capabilities
Management capabilities
Financial conditional cost structure
Longer-term relationship potential

Question 13

Procure to pay cycle

Answer 13

• ordering
• follow-up and expedition
• receipt and inspection
  
  • statement of work
• settlement and payment
  
  • EFT
• records maintenance

Question 14

Consolidation warehouse

Answer 14

Small, flexible shipments in

Large, economical shipments out

Question 15

Cross docking

Answer 15

Large, economical shipments in

Small, flexible shipments out

Question 16

Hub and spoke system

Answer 16

Two trucks meet
Larger truck takes both loads somewhere
Splits again to go to separate places

Question 17

Logistics strategy

Answer 17

A functional strategy which e sites that an organizations logistics choices are consistent with its overall business strategy and support the performance dimensions that targeted customers most values

Question 18

Weighted center of gravity example

Answer 18

X=x dot times demand + …/demands added together

Y=repeat for Y numbers

Question 19

Master scheduling

Answer 19

A detailed planning process that tracks production output and matches this output to actual customer orders

Question 20

Ending inventory (t)=

Answer 20

EI(t-1) + MPS(t) - max(F(t),BO(t))

Question 21

Available to promise (t)=

Answer 21

EI(t-1) + MPS(t) - max(BO(t),BO(t+1))

Question 22

Lead times

Answer 22

The time required to purchase, produce, or assemble an item

Question 23

NR(t)=

Answer 23

max(0; GR(t) - EI(t) - SR(t))

Question 24

ATP(t)=

Answer 24

MPS(t) - sum of all BO until next MPS

Question 25

% is perfect orders

Answer 25

100%(total orders-orders with >= 1 defect/ total orders)