Expert Verifed Ace the Test
Inventory(stock) - ANSWER ✔✔Value of stock of goods held by
company. Products maintained on hand to buffer against variations.
Types of Inventory - ANSWER ✔✔Raw Materials, Work in Progress,
and Finished Goods
Demand Management - ANSWER ✔✔focused efforts to to estimate
and manage customer demand to shape operating decisions.
, Barriers to demand management - ANSWER ✔✔Lack of inter-
department coordination, ignoring collaborative planing, and using DM
for tactical/operational rather than strategic purposes.
If demand > supply - ANSWER ✔✔increase price
If demand < supply - ANSWER ✔✔reduce price
Internal Mechanisms(Inventory) - ANSWER ✔✔most common and
expensive
Safety Stock - ANSWER ✔✔used to buffer against variations in lead
time and demand and to avoid stockouts.
Internal mechanisms(production flexibility) - ANSWER ✔✔quick
changeover production from one product to the next. Tradeoff between
prod changeover cost and inventory cost.
Random variation - ANSWER ✔✔cannot be anticipated
problem with internal forecasts for each business function - ANSWER
✔✔none would agree with each other
S&OP - ANSWER ✔✔strategic process used to reconcile conflicting
business function objectives. arrives at consensus interdepartmental
forecasts.