Supply Chain and Inventory Management: Key Concepts
At each of its home games, the Washington Check-Kiters football team sells programs that give statistics of the teams involved in the current game’s contest: 50 percent
Using the data from Exhibit 12-3 and the regression model, what is the sales forecast if Gamma is expected to be 21? (Round your forecast to the nearest number of whole units.): 39
Which of the following factors should be considered when one designs a forecasting process? All of these
Using the data from Exhibit 12-4, the company has forecasted next year’s demand to be 400. What is the seasonally adjusted forecast for Quarter 1 (choose the closest answer). 73
Jones Company has calculated that the EOQ for a particular item is 1,000 units. Lower annual inventory carrying cost than ordering the EOQ quantity
A batch of Raisin Bran that has been made at Kellogg’s but not yet packaged in its final cereal box would be an example of what type of inventory? Work-in-process.
Blue Star Co. has been using the production order quantity inventory model. If annual demand, daily demand, and the production rate: The order quantity will double.
The lowest total annual acquisition cost for Book Store quantity is closest to (Due to possible differences in rounding, choose the closest answer.): 16,018,000
What order quantity would give the Book Store the lowest total acquisition cost? (Due to possible differences in rounding, choose the closest answer.) 2,500
Jones Corp. has noticed that sales of its product seem to be related to a variable it calls Gamma. It has developed the data shown in Exhibit 12-3(below). 34
Which of the following pieces of information is identified in the original 12-digit UPC code? The manufacturer of the item.
Natalie’s Cabinets makes cabinets at an average cost of $2,000. Last year, Natalie sold 5,000 units of the cabinets and had an annual turnover rate of 4 times. $625,000
Using the data in the previous problem (below), what is the ADJUSTED forecast for the next period? 216.6
What is the EOQ if HighLife pays $45/unit? Due to possible differences in rounding, choose the closest answer. 365
When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain, this is known as: Bullwhip effect
How does product design affect forecasting accuracy? Postponable product designs remove the need to forecast demand for final product configurations.
Exhibit 07.2. Suppose management decides it wants to offer a 95 percent service level. That is, it is willing to experience a stockout probability of 5 percent during the order cycle. What is the annual cost of this safety stock policy? $82.50
Continuing with the preceding problem (below), demand in period t+1 turned out to be 220. What is the adjusted forecast for period t+2 (choose the closes answer)? 227.3
Long-term/strategic demand planning is typically done using what units? Total business unit sales
A company recently lowered its service performance from 99 percent product availability to 97 percent product availability: Less than $1 million.
Suppose demand is 45 units a month, average inventory is 60 units, and unit cost is $20. What is the annual inventory turnover? 9
Given the data in Exhibit 12-1, the bias of these forecasts is: Negative
The ABC analysis used for analyzing inventory is an example of: Pareto’s Law.
Over a six-month period, the demand for a product has been. June = 200, July = 210, August = 240, September = 240, October = 260: 260
Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate? Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year
Using the data in Exhibit 12-5, what is the MAPE? 5.99 percent
What might a company do to reduce the amount of cycle stock it holds? Attempt to reduce order costs.