SCMN Exam 1 - Robert Straw with
Complete Solutions
____ should drive operations to best balance supply anddemand - ANS-Supply Chain
management
7 keys to facility location - ANS-1. land
2. labor
3. capital
4. sources of supply
5. production
6. markets
7. logistics
Be able to compute weighted moving average (WMA) andunderstand why you would
use it
Review the network design nomenclature, functions, and-activities Review the 7 keys to
facility location - ANS-
Benefits of a decentralized supply chain - ANS-- Customer proximity
- Shorter lead times
- Lower delivery costs
- Responsive to demand
Benefits of Centralized supply chain network - ANS-- Lower Inventory and safety stock
levels
- Single location creates better visibility
- Lower over head stock
- Less Labor
- Smaller management team
- Economies of scale
Challenges of Centralized supply chain network - ANS-- Longer lead times
- Higher delivery cost
- Potential inefficiencies as single factory grows
- Potential issues with regional customers
Challenges of decentralized supply chain - ANS-- More safety stock in system
- Higher overhead costs
- More managers
- No economies of scale
, Cross dock delivery - ANS-A distribution center to which vendors ship merchandise
prepackaged and ready for sale:
Transport Cost - Lower
Inventory - Moderate
Safety Stock - No backup
Handling Costs - Low
Facility Investments - Low
demand forecasting - ANS-a decision process in which managers predict demand
patterns
Design Capacity - ANS-(Best Operating Level) theoretical or maximum output rate or
service capacity an operation, process, or facility is designed for
direct delivery - ANS-Point-to-point service:
Transport Cost - Higher
Inventory - Minimal
Safety Stock - No backup
Handling Costs - Very Low
Facility Investments - None
effective capacity - ANS-(Normal Operating level) Logical or reasonable expectation of
capacity use. Design capacity minus typical allowances such as personal time,
maintenance, and scrap
gross requirements - ANS-Total expected demand for end item orcomponent in a time
period.
How are the elements of MRP accomplished? - ANS-They are accomplished through
Gross requirements, scheduled receipts, projected on hand, and planned order
releases.
How do you calculate a weighted moving average forecast? - ANS-Ft = w1At-1 + w2At-
2 + w3At-3......
How do you determine capacity utilization? - ANS-Utilization=Actual
output/capacity(100%)
long-term planning - ANS-deals with structure, asset ownership, capital budgets, and
strategy relating towards the company (2+ years)
Mid-Term Planning - ANS-focuses on demand forecasting and sales and operations
planning (3-18 months)
Complete Solutions
____ should drive operations to best balance supply anddemand - ANS-Supply Chain
management
7 keys to facility location - ANS-1. land
2. labor
3. capital
4. sources of supply
5. production
6. markets
7. logistics
Be able to compute weighted moving average (WMA) andunderstand why you would
use it
Review the network design nomenclature, functions, and-activities Review the 7 keys to
facility location - ANS-
Benefits of a decentralized supply chain - ANS-- Customer proximity
- Shorter lead times
- Lower delivery costs
- Responsive to demand
Benefits of Centralized supply chain network - ANS-- Lower Inventory and safety stock
levels
- Single location creates better visibility
- Lower over head stock
- Less Labor
- Smaller management team
- Economies of scale
Challenges of Centralized supply chain network - ANS-- Longer lead times
- Higher delivery cost
- Potential inefficiencies as single factory grows
- Potential issues with regional customers
Challenges of decentralized supply chain - ANS-- More safety stock in system
- Higher overhead costs
- More managers
- No economies of scale
, Cross dock delivery - ANS-A distribution center to which vendors ship merchandise
prepackaged and ready for sale:
Transport Cost - Lower
Inventory - Moderate
Safety Stock - No backup
Handling Costs - Low
Facility Investments - Low
demand forecasting - ANS-a decision process in which managers predict demand
patterns
Design Capacity - ANS-(Best Operating Level) theoretical or maximum output rate or
service capacity an operation, process, or facility is designed for
direct delivery - ANS-Point-to-point service:
Transport Cost - Higher
Inventory - Minimal
Safety Stock - No backup
Handling Costs - Very Low
Facility Investments - None
effective capacity - ANS-(Normal Operating level) Logical or reasonable expectation of
capacity use. Design capacity minus typical allowances such as personal time,
maintenance, and scrap
gross requirements - ANS-Total expected demand for end item orcomponent in a time
period.
How are the elements of MRP accomplished? - ANS-They are accomplished through
Gross requirements, scheduled receipts, projected on hand, and planned order
releases.
How do you calculate a weighted moving average forecast? - ANS-Ft = w1At-1 + w2At-
2 + w3At-3......
How do you determine capacity utilization? - ANS-Utilization=Actual
output/capacity(100%)
long-term planning - ANS-deals with structure, asset ownership, capital budgets, and
strategy relating towards the company (2+ years)
Mid-Term Planning - ANS-focuses on demand forecasting and sales and operations
planning (3-18 months)
