SCM Inventory UPDATED ACTUAL Questions and CORRECT Answers
Inventory decisions are both: high risk and high impact in supply chain.
Inventory committed to support future sales drives a num-
anticipatory supply chain activities
ber of what?
Without proper inventory assortment there would be
lost sales and customer dissatisfaction
what?
- geographical specialization
- decoupling
inventory functionality consists of:
- supply/demand balancing
- buffering uncertainty.
allows geographical positioning across multiple manufac-
turing and distributive units of an enterprise. Inventory
geographical specialization
maintained at different locations and stages of the val-
ue-creation process allows specialization.
allows economy of scale within a single facility and permits
each process to operate at maximum eflciency rather than
Decoupling:
having the speed of the entire process constrained by the
slowest.
accommodates elapsed time between inventory availabil-
Supply/demand balancing ity (manufacturing, growing, or extraction) and consump-
tion.
accommodates uncertainty related to demand in excess of
forecast or unexpected delays in order receipt and order
Buffering uncertainty
processing in delivery and is typically referred to as safety
stock.
amount typically in transit between facilities or on order
Transit inventory
but not received
stock that is out-of-date or that has not experienced recent
Obsolete inventory
demand. It is sold at a loss or destroyed.
Speculative inventory
Inventory decisions are both: high risk and high impact in supply chain.
Inventory committed to support future sales drives a num-
anticipatory supply chain activities
ber of what?
Without proper inventory assortment there would be
lost sales and customer dissatisfaction
what?
- geographical specialization
- decoupling
inventory functionality consists of:
- supply/demand balancing
- buffering uncertainty.
allows geographical positioning across multiple manufac-
turing and distributive units of an enterprise. Inventory
geographical specialization
maintained at different locations and stages of the val-
ue-creation process allows specialization.
allows economy of scale within a single facility and permits
each process to operate at maximum eflciency rather than
Decoupling:
having the speed of the entire process constrained by the
slowest.
accommodates elapsed time between inventory availabil-
Supply/demand balancing ity (manufacturing, growing, or extraction) and consump-
tion.
accommodates uncertainty related to demand in excess of
forecast or unexpected delays in order receipt and order
Buffering uncertainty
processing in delivery and is typically referred to as safety
stock.
amount typically in transit between facilities or on order
Transit inventory
but not received
stock that is out-of-date or that has not experienced recent
Obsolete inventory
demand. It is sold at a loss or destroyed.
Speculative inventory
