SCM 300 Exam 1 (Latest Update) verified
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(100% correct)
3 branches of supply chain
procurement (purchasing), operation, logistics, reverse
Procurement (purchasing)
the branch of supply chain where deals happen, negotiations for the best price on materials,
equipment, goods, and services. acquiring materials and placing orders.
Operations
the branch responsible for making business processes effective and efficient (help create high
quality products/services using fewest resources possible).
Logistics
is concerned with transportation, finding the right partners or best ways to get the product or
service from origin to consumption.
Key variable in elementary inventory calculations
Q - lot size
D - annual demand
C - cost to purchase one unite
,SCM 300 Exam 1 (Latest Update) verified
Questions & Answers | Already Graded A
(100% correct)
H - cost to hold on unit of inventory in one year
S - cost to place a single order
Annual cost to purchase inventory
DC
Annual Holding Cost (AHC)
(Q/2)*H
Annual Ordering Cost (AOC)
(D/Q)S
Equation for total cost
DC + AHC + AOC
Economic Order Quantity (EOQ)
the lot size that minimizes total annual inventory holding and ordering costs, making it the
optimal lot size
= SQRT (2DS/H)
, SCM 300 Exam 1 (Latest Update) verified
Questions & Answers | Already Graded A
(100% correct)
if a manager is looking to minimize inventory costs and maximize total annual savings then he
would calculate optimal lot size through this formula.
Cycle time
the pace at which product must move through the assembly line in order for the assembly line to
keep pace with demand.
= Operating Time/D
Theoretical Minimum number of workstations calculations (TM)
total task time / cycle time
3 Supply Chain Flows
Money, material, information
downstream supply chain
the direction that points towards the end customer
Ex: delivering goods from a manufacturer to a distributor. main suppliers s1 working to get parts
prepared in time for manufacturer.
Upstream Supply Chain
Questions & Answers | Already Graded A
(100% correct)
3 branches of supply chain
procurement (purchasing), operation, logistics, reverse
Procurement (purchasing)
the branch of supply chain where deals happen, negotiations for the best price on materials,
equipment, goods, and services. acquiring materials and placing orders.
Operations
the branch responsible for making business processes effective and efficient (help create high
quality products/services using fewest resources possible).
Logistics
is concerned with transportation, finding the right partners or best ways to get the product or
service from origin to consumption.
Key variable in elementary inventory calculations
Q - lot size
D - annual demand
C - cost to purchase one unite
,SCM 300 Exam 1 (Latest Update) verified
Questions & Answers | Already Graded A
(100% correct)
H - cost to hold on unit of inventory in one year
S - cost to place a single order
Annual cost to purchase inventory
DC
Annual Holding Cost (AHC)
(Q/2)*H
Annual Ordering Cost (AOC)
(D/Q)S
Equation for total cost
DC + AHC + AOC
Economic Order Quantity (EOQ)
the lot size that minimizes total annual inventory holding and ordering costs, making it the
optimal lot size
= SQRT (2DS/H)
, SCM 300 Exam 1 (Latest Update) verified
Questions & Answers | Already Graded A
(100% correct)
if a manager is looking to minimize inventory costs and maximize total annual savings then he
would calculate optimal lot size through this formula.
Cycle time
the pace at which product must move through the assembly line in order for the assembly line to
keep pace with demand.
= Operating Time/D
Theoretical Minimum number of workstations calculations (TM)
total task time / cycle time
3 Supply Chain Flows
Money, material, information
downstream supply chain
the direction that points towards the end customer
Ex: delivering goods from a manufacturer to a distributor. main suppliers s1 working to get parts
prepared in time for manufacturer.
Upstream Supply Chain
