Lecture 9

Question 1

4 Types of forecast models

Answer 1

1. Qualitative
2. Time series analysis
3. Causal relation
4. Simulation

Question 2

4 models Quantitative Forecast Models

Answer 2

1. Simple moving average
2. Weighted moving average
3. Exponential smoothing
4. Linear regression analysis

Question 3

Assumptions on learning curves

Answer 3

1. Amount of time required to complete a task (or unit of product) will be less each time the task is undertaken
2. Unit time will decrease at a decreasing rate (it becomes more difficult to improve)
3. Reduction in time will follow a predictable pattern

Question 4

Aggregate operations plan

Answer 4

Set production rates by product group (aggregation), workforce level and inventory

Question 5

Sales and operations planning (S&OP)

Answer 5

Process designed to coordinate key business activities:
- Marketing and sales & operations and supply chain
- Process to keep demand & supply in balance over time

Question 6

Costs to keep in mind when production planning

Answer 6

1. Basic production costs
2. Changes in production rate
3. Inventory holding
4. Backordering

Question 7

Yield management

Answer 7

Allocating limited capacity to the customer at the right price and time to maximize profit

Question 8

Yield management most effective when (5):

Answer 8

1. Customer segmentation
2. Fixed costs high
3. Inventory perishable
4. Product available in advance
5. Demand variable

Question 9

ERP (Enterprise Resource Planning)

Answer 9

System used to manage day-to-day business activities.

Question 10

MRP (Material Requirements Planning)

Answer 10

A production planning, scheduling, and inventory control system.

Question 11

BOM

Answer 11

Bill Of Materials