SCMN 2150 STUDY EXAMS GUIDE ALL QUESTIONS
AND ANSWERS SURE A+
✔✔What is the Exponential Smoothing Model? What is the formula? - ✔✔The most
recent observations might have the highest predictive value. Therefore, we should give
more weight to the more recent time periods when forecasting.
✔✔What is Mean Absolute Deviation (MAD)? What is the formula? - ✔✔(Actual -
Forecast)
= -------------------------
Actual
NOTE: Numerator is absolute value
MAD seeks to find the difference between our forecast value and what actually occurred
The ideal MAD is 0, which would mean there is no forecasting error.
✔✔What is scheduling? - ✔✔Allocation of resources to activities over time
✔✔What is sequencing? - ✔✔Order of occurrence
✔✔What is ERP? - ✔✔Enterprise Resource Planning: complex system businesses use
, ✔✔Product Structure Tree - ✔✔A tree/graph that shows how the components in the
BOM are put together to make the level A item (final product).
✔✔What is lead time? What is the formula? - ✔✔the time between the initiation and
completion of a production process.
Week Needed by - Lead time = Order by date
Important to note that week needed by changes as you go down the tree (Ex: if you calc
a order by date of 7 for item C, and item D is under item C, in order to calc The order by
date for D, you would use the number calc above for your formula)
✔✔What is Sales and Operations Planning (S&OP)? - ✔✔At the heart of balancing
supply and demand. Overall result is that a single operating plan is created that
identifies the allocation of company resources like time, money and employees.
✔✔What is Materials Requirements Planning (MRP)? - ✔✔Tool to deal with over/under
purchasing of key input items (materials and subassemblies). Helps us answer 4
questions:
1.) What are we going to make?
2.)What have we got?
3.) What do we have to get and when?
4.) What does it take to make it?
✔✔What is Gross Requirements? - ✔✔Total expected demand for end item or
component in a time period.
✔✔What is Projected on-hand? How do you calculate it? - ✔✔Amount of inventory that
will be on hand at the start of each time period.
= On hand inventory + Scheduled Receipts
✔✔What is Net requirements? How do you calculate it? - ✔✔The actual amount that we
need to purchase in each time period
= Gross requirements - Projected on-hand
✔✔What is Planned-order release? How do you calculate it? - ✔✔Planned amount to
order in each time period
= Gross requirement/Inventory on hand
AND ANSWERS SURE A+
✔✔What is the Exponential Smoothing Model? What is the formula? - ✔✔The most
recent observations might have the highest predictive value. Therefore, we should give
more weight to the more recent time periods when forecasting.
✔✔What is Mean Absolute Deviation (MAD)? What is the formula? - ✔✔(Actual -
Forecast)
= -------------------------
Actual
NOTE: Numerator is absolute value
MAD seeks to find the difference between our forecast value and what actually occurred
The ideal MAD is 0, which would mean there is no forecasting error.
✔✔What is scheduling? - ✔✔Allocation of resources to activities over time
✔✔What is sequencing? - ✔✔Order of occurrence
✔✔What is ERP? - ✔✔Enterprise Resource Planning: complex system businesses use
, ✔✔Product Structure Tree - ✔✔A tree/graph that shows how the components in the
BOM are put together to make the level A item (final product).
✔✔What is lead time? What is the formula? - ✔✔the time between the initiation and
completion of a production process.
Week Needed by - Lead time = Order by date
Important to note that week needed by changes as you go down the tree (Ex: if you calc
a order by date of 7 for item C, and item D is under item C, in order to calc The order by
date for D, you would use the number calc above for your formula)
✔✔What is Sales and Operations Planning (S&OP)? - ✔✔At the heart of balancing
supply and demand. Overall result is that a single operating plan is created that
identifies the allocation of company resources like time, money and employees.
✔✔What is Materials Requirements Planning (MRP)? - ✔✔Tool to deal with over/under
purchasing of key input items (materials and subassemblies). Helps us answer 4
questions:
1.) What are we going to make?
2.)What have we got?
3.) What do we have to get and when?
4.) What does it take to make it?
✔✔What is Gross Requirements? - ✔✔Total expected demand for end item or
component in a time period.
✔✔What is Projected on-hand? How do you calculate it? - ✔✔Amount of inventory that
will be on hand at the start of each time period.
= On hand inventory + Scheduled Receipts
✔✔What is Net requirements? How do you calculate it? - ✔✔The actual amount that we
need to purchase in each time period
= Gross requirements - Projected on-hand
✔✔What is Planned-order release? How do you calculate it? - ✔✔Planned amount to
order in each time period
= Gross requirement/Inventory on hand
