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Study Resources (Supply Chain Management)

20) The order quantity at which total annualized inventory-related costs are minimized is known as the ________. 21) Extra stock held in anticipation of variable demand is known as ________. 22) As the variability of demand during lead time increases, required safety stock for the same service level will ________. 23) An inventory.
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  16) Which forecasting method is commonly used by going to the market to get information for new product launches? A) Delphi method B) String method C) Time series forecasting D) Grassroots forecasting 17) The average rate of change in a time series data is known as ________. 18) Long-term, repetitive patterns in a time series that.
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  6) In ABC inventory analysis, C items typically represent about 15 percent of the number of items but 80 percent of the usage. 7) In a continuous review inventory system, the order size is the same for each order. 8) The periodic review inventory model requires a continuous monitoring of inventory levels. 9).
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  11) A forecast method is generally said to be accurate when the errors exhibit an identifiable pattern. 12) Bias exists when the forecast tends to be greater or less than the actual demand. 13) In measuring the forecast accuracy, bias is measured by the cumulative sum of forecast errors. 14) What will be.
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  21) What is the Mean Absolute Percent Deviation (MAPD) if the sum of the absolute forecast error over 12 periods is 174 and the cumulative demand over the same 12 periods is 1500? A) 8.62% B) 11.60% C) 12.5% D) 19.75% 22) Which of the following forecast error measures will help determine whether or not.
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6) In inventory models, a quantity discount will lower the reorder point. 7) What will be the effect on total ordering costs (calculated over multiple orders) in an inventory system as the size of each order increases? A) It will increase. B) It will decrease. C) It will remain unchanged. D) Order size has no.
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  16) Demand that is calculated from a parent item is called ________. 17) In managing inventory for independent demand items, the two important decision queries that need to be answered are ________. 18) A repetitive procedure for counting inventory on a regular basis is known as ________. 19) Inventory systems in which orders.
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  16) Building up inventory in anticipation of unforeseen global supply chain interruptions is known as ________. 17) The period between placing and receiving an order is known as ________. 18) Producing extra inventory during periods of low demand, which is then consumed during periods of high demand, is known as ________. 19) Hallmark.
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1) The main objective of the portfolio model is to determine cost discount targets for different suppliers. 2) In the strategic sourcing framework, the margin on a particular item for a supplier is known as the profit impact. 3) In the portfolio model, depending on the sourcing strategy, an item is assigned.
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1) Production smoothing is balancing the cost of set-ups with inventory carrying costs. 2) Service level is the probability that an item will be available in stock for order fulfillment. 3) In fixed time period inventory models, inventory is reordered when it reaches a predetermined stock level. 4) Inventory that is kept at.
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1) Purchased goods and services typically make up under 50% of a firm's cost of goods sold. 2) A dollar saved in cost of materials purchased is a dollar added to the pre-tax profit. 3) The impact of sourcing materials or services with improved quality is usually reduced profitability for the firm. 4).
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11) The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as ________. 12) A survey administered to suppliers to determine fit with purchaser needs is known as ________. 13) A meeting that the negotiation team holds soon after.
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  6) Producing extra inventory during periods of low demand, which is then consumed during periods of high demand is known as A) production smoothing. B) production hedging. C) production buffering. D) production stocking. 7) In fixed time period inventory models, inventory is reordered A) as required. B) when stock reaches a predetermined level. C) at regular time intervals. D).
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  11) Forecasts based on judgment and opinion do not include which of the following? A) Customer surveys B) Delphi method C) Averaging techniques D) Greenfield forecasting 12) Which of the following is not a step in the forecasting process? A) Identify the purpose for our forecast B) Determine the time horizon for the forecast C) Determine feasible capacity.
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6) Identifying key projects to work on occurs before the critical supplier is identified for the supplier development process. 7) Which of the following suppliers is not a prime candidate to be chosen as part of the supplier development process? A) Provides a large volume of products B) Is a source of competitive advantage C).
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1) The two important inventory decisions in managing inventory for independent demand items are how much to order and which vendor to use. 2) In managing inventory for independent demand items, the phrase "timing" refers to the decision query "when to place an order." 3) Demand that is calculated from a parent.
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6) Menchie's Landscaping service routinely provides lawn fertilization services to their customers. It has been forecasted that they will be fertilizing 250 customer lawns in the upcoming season. Each lawn requires an average of 20 lbs. of fertilizer. What term can be used to describe the demand for the fertilizer? A).
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  16) The kind of supplier relationship that is usually recommended when the item is a critical item and supply risk is high is a ________ relationship. 17) The kind of supplier relationship that is usually recommended when the item is a non-critical item and the importance of technology is low is.
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  21) Best Home Cabinets orders wood, their main raw material, from their supplier once every week. The inventory model they are using is known as a ________ model. 22) Inputs to production that take the form of either fundamental supplies or subassemblies and components received from suppliers are known as ________. 23).
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11) When determining the Economic Order Quantity (EOQ) with quantity discounts, which cost is included in addition to the costs considered in the basic EOQ formulation? A) Cost of packing the item B) Safety stock cost C) Per-unit cost of the item D) Inventory cycle count cost Use the information below to answer the following.
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1) The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as supplier self-assessment. 2) A request for proposal (RFP) is used when the firm knows exactly what they need, whereas a request for quote (RFQ) is used.
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  11) What kind of supplier relationship is recommended when the item is a non-critical item and the importance of technology is low? A) Transactional B) Long-term C) Strategic D) Collaborative 12) The first step in the supplier management process is to ________. 13) Documentation that tells buyers what to buy and the suppliers what is required.
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6) What is the percent improvement in the defect rate this quarter compared to the prior quarter? A) 37% B) 15% C) 25% D) 59% 7) What are the scorecard points received by this supplier for the percentage PPM improvement in this quarter? A) 0 B) 5 C) 10 D) 15 Use the information below to answer the following question(s). A.
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  6) The exponential smoothing forecasting technique is a form of weighted moving average. 7) The double exponential smoothing technique requires the use of two smoothing constants. 8) The Mean Absolute Deviation (MAD) is equal to the square root of the Mean Squared Error (MSE). 9) A smoothing constant of 0.2 will cause the.
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  11) Products that are waiting to be sold to customers are known as A) finished goods inventory. B) work-in-process inventory. C) make-to-stock inventory. D) make-to-order inventory. 12) Inventory that is completed and placed into inventory for sale at a later date is known as A) buffer inventory. B) work-in-process inventory. C) make-to-stock inventory. D) make-to-order inventory. 13) Products sent directly.
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6) The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as A) request for quotation. B) bid specification. C) preferred supplier contractor. D) statement of work. 7) A survey administered to suppliers to determine fit with purchaser needs is known as A).
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1) A forecast is an assertion about the future whose outcome is known. 2) Demand that is calculated from a parent item is called independent demand. 3) In the context of demand management, the loss and replacement of customers is known as churn. 4) The practice of hotels and resorts offering off-season discounts.
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Use the following information to answer the following question(s). ABC Tools has annual sales of $50 million, annual materials cost of $28 million, and net income of $5 million. 6) If a new purchasing agent is able to reduce the cost of materials by 10 percent, what would be the addition to.
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1) When new products show a steady increase in sales, a low alpha value for the smoothing constant should be used in conjunction with the exponential smoothing technique in order to minimize forecast errors. 2) The double smoothing technique adds twice the forecast error to last period's actual demand to arrive.
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1) The first step in the supplier development process is to identify opportunities for development. 2) Cross-functional teams are an integral part of the supplier development process. 3) The supplier development process is the sole responsibility of mid-level management. 4) Engineering personnel are typically included as members of a cross-functional supplier development team. 5).
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  6) A collaborative relationship with the supplier is usually recommended for the procurement of an item for which the supply risk is high. 7) Switching costs are usually high in collaborative supplier relationships. 8) Which is the first step in the supplier management process? A) Identify needs B) Select supplier C) Develop supplier D) Provide feedback 9).
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Use the information below to answer the following question(s): A retailer operating a network of home improvement stores has annual sales of $800 million, annual cost of goods and materials purchased of $500 million, and net income of $125 million. 11) If a newly implemented strategic sourcing process is able to reduce.
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1) Removing the seasonal component from a historical demand (de-seasonalizing) can be accomplished by dividing each data point by its appropriate seasonal index. 2) If a pattern appears like cycles or seasonality when a dependent variable is plotted against time, one should use time series analysis instead of regression analysis. 3) Seasonal.
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1) The EOQ inventory model helps determine the quantity to order to minimize costs. 2) Because price isn't a factor in the EOQ formula, quantity discounts won't affect EOQ calculations. 3) In the EOQ quantity discount model, the optimum order quantity will always be found on the lowest total cost curve. 4) In.
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