Week 1 Flashcards
1
Q
What are the 6 components to defining a supply chain?
A
- It’s a network
- Information must flow
- Coordination is essential
- Avoid conflicting objectives
- Balance cost and service
- Foster long-term relationship
2
Q
What are fisher’s two supply chain strategies?
A
- Responsive
2. Efficient (low cost)
3
Q
What are the two types of demand?
A
- Functional
2. Innovative
4
Q
What are the two functions of a supply chain?
A
- Physical function: focuses on efficiency of SC
2. Market mediation function: focus on responsiveness of SC
5
Q
What are the two factors to review when choosing between push or pull strategy?
A
- Demand uncertainty
2. Lead time/ economies of scale
6
Q
What are the three pull boundaries?
A
- Make-to-order
- Assemble-to-order
- Make-to-stock
7
Q
Why do we hold inventory?
A
- To hedge against uncertainty in supply and demand
- To make use of economies of scale
- To hedge against lead time
- Due to capacity limitations
8
Q
What is the inventory cost structure?
A
- Order cost
- Holding cost
- Component devaluation cost
- Price protection cost
- Product return cost
- Obsolescence costs
- Out of stock cost
9
Q
What are the two forecasting methods?
A
- Quantitative methods: moving average and exponential smoothing
- Qualitative methods
10
Q
What are the three principles of forecasting?
A
- The forecast is always wrong
- The longer the forecast horizon, the worse the forecast
- Aggregate forecasts are more accurate
11
Q
What are decisions to be made for inventory control policies?
A
- How often should inventory status be checked?
- When to replace a replenishment order?
- How large should the order size be?
12
Q
What is the economic lot size model?
A
- Demand is known and constant at a rate of D items / time unit
- Order quantity is fixed at Q items per order
- Balance fixed order cost K and inventory holding cost h
- Receipt of inventory is instantaneous
- No discounts
- No stock outs
