MGSC 395 Final Exam Questions With 100% Correct Answers And Trusted Solutions.

Complementary products - correct answers when one demand goes up, so does the other Judgement methods - correct answers contextual knowledge gained through experience Causal methods - correct answers Use historical data and the relationships can be identified between the dependent and independent variable (s). Time series methods - correct answers Use historical information regarding only the dependent variable Time series methods examples - correct answers Simple moving average, exponential smoothing, trend patterns using regression method naive forecast - correct answers The forecast for the next period equals the demand for the current period (Forecast = Dt) Exponential smoothing - correct answers recent demands are weighed more than earlier demands How to calculate MAD - correct answers Sum of the absolute value of all of the forecasting errors divided by the number of periods How to calculate MAPE - correct answers Take the absolute value of the error for a period, divide it by the actual demand for that period, times 100. Do this for every period, then add them all up. Divide that number by the number of periods to get MAPE. ABC Analysis -- A - correct answers High value. 80% of dollar value, 20% SKUs. Pareto concept. ABC Analysis -- B - correct answers Moderate value. 15% dollar value. 30% SKUs ABC Analysis -- C - correct answers Low value. 5% dollar value. 50% SKUs As the service level increases, the probability of not running out of stock during a cycle [increases/decreases] - correct answersdecreases Definition of inventory management - correct answersthe planning and controlling of inventories to meet the competitive priorities of the organization. Two-Bin system - correct answersa type of visual system where SKU's inventory is stored at two different locations. Inventory is first withdrawn from one bin. If the first bin is empty, the second bin provides backup to cover demand until a replenishment order arrives. Base-stock system - correct answersIssues a replenishment order each time a withdrawal is made, for the same amount of the withdrawal thus maintaining a base stock level. Also part of the Q system. Inventory position - correct answersmeasures SKUs ability to satisfy future demand. Includes scheduled receipts, on-hand inventory, Scheduled receipts - correct answersOrders that have been placed but not yet received EOQ (economic order quantity) - correct answersis the lot size, Q, that minimizes total annual inventory holding and ordering costs Continuous review system - correct answershas a reorder point (ROP) and a fixed order quantity (getting gas when you have a quarter of a tank) Period review system - correct answershas a fixed/periodic interval reorder system (getting gas every Sunday, you might have different amounts of gas each time you go) The purpose of supply chain design is - correct answersto shape a firm's supply chain to meet the competitive priorities of its operations strategies. An efficient supply chain typically has [high/low] inventory turns. - correct answershigh Outsourcing - correct answersPaying suppliers and distributors to perform processes and provide needed services and materials Responsiveness - correct answersExcess capacity, flexible, wide range of items, frequent shipments Efficiency - correct answersLittle excess capacity, narrow focus, low inventory, slower and cheaper, few large shipments, cost of info drops, other costs rise How to calculate inventory turnover - correct answersTake the annual cost of goods sold and divide by the average aggregate inventory value. Load-distance method - correct answersa mathematical model used to evaluate locations based on proximity factors. The objective is to select a location that minimizes the sum of the loads from the facility to each node, multiplied by the distance the load travels. Rectilinear distance - correct answersThe distance between two points with a series of 90-degree turns. Load distance score - correct answersThe firm seeks to minimize its load distance (ld) score, generally by choosing a location that ensures large loads go short distances. Definition of supply chain integration - correct answersThe effective coordination of supply chain processes though the seamless flow of information up and down the supply chain. Choosing suppliers based on weighted criteria - correct answers Preference matrix Bullwhip effect - correct answers The phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain. Small changes in demand