9 Questions
What is the mission of an organization?
reason for an existence of an organization
Time Series is a type of forecast that uses historical data assuming that future will likely be the ____.
past
Which of the following is true about Economies of Scale?
Cost of producing each individual unit decreases as the number of units produced increases
Dependent Demand typically refers to component parts or materials used in the process to produce a final product.
True
Match the following terms with their definitions:
Coefficient of Determination = Measures the portion of the variation in the dependent variable that can be attributed to the independent variable. Netting = Subtracting on-hand quantities from gross requirements to produce net requirements Master Production Schedule = A schedule for the production of end items or final products. ABC System = Classifying inventory items based on dollar value to the firm
True or False: Time Series is a type of forecast that uses future data to predict historical patterns.
False
What is Scientific Management based on?
Observation, measurement, and analysis
What does MRP stand for?
Material Requirements Planning
Match the following terms with their definitions:
EOQ (Economic Order Quantity) = A fixed order quantity that minimizes total inventory costs. ABC System = A method for classifying inventory items based on dollar value. Lead Time Offsetting = Process of subtracting lead time from due date for order release. Explosion = Determining lower-level item requirements by multiplying planned orders of parent items.
Study Notes
Supply Chain Management
- Facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.
Forecasting
- Time Series Forecasting: A type of forecast that uses historical data, assuming that the future will likely be similar to the past.
- Moving Average: A method that averages demand for a fixed sequence of periods, including the most recent period.
- Linear Trend Line: A forecast using a linear regression equation to relate demand to time.
- Delphi Method: A procedure for acquiring informed judgments and opinions from knowledgeable individuals to use as a subjective forecast.
- Regression Forecasting Method: A class of mathematical techniques that relate demand to factors that cause demand behavior.
Operations Management
- Operations: A function or system that transforms inputs into outputs of greater value.
- Economies of Scale: The number of units produced increases, the cost of producing each individual unit decreases.
- Diseconomies of Scale: Higher levels of output cost more per unit to produce.
Inventory Management
- Economic Order Quantity (EOQ): A fixed order quantity that minimizes total inventory costs.
- Ordering Cost: The cost of replenishing the stock of inventory, including requisition cost, transportation, and shipping.
- Reorder Point: A level of inventory in stock at which a new order is placed.
- Carrying Cost: The cost of holding an item in inventory, including lost opportunity costs, storage, rent, cooling, and lighting.
- Quantity Discount: A pricing schedule in which lower prices are provided for specific higher order quantities.
Production Planning
- Aggregate Production Planning: The process of determining the quantity and timing of production over an intermediate time frame.
- Material Requirements Planning (MRP): A computerized inventory control and production planning system for generating purchase orders and work orders of materials, components, and assemblies.
- Manufacturing Resource Planning (MRP II): A computerized system that plans all the resources necessary for manufacturing, including financial and marketing analysis, feedback loops, and overall business plan.
Operations Strategy
- Capacity: The maximum output rate or service capacity that an operation, process, or facility is designed for.
- Capacity Gap: The difference between future capacity requirement and present capacity requirement.
- Effective Capacity: The maximum output rate or service capacity that an operation, process, or facility is designed for, less personal and other allowances.
- Best Operating Level: The percent of capacity utilization at which unit costs are lowest.
Scheduling
- Sequencing: The process of assigning priorities to jobs so that they are processed in a particular order.
- Infinite Scheduling: An approach to scheduling that initially assumes infinite capacity and then manually "levels the load" of resources that have exceeded capacity.
- Finite Scheduling: An approach to scheduling that loads jobs in priority order and delays those jobs for which current capacity is exceeded.
- Johnson's Rule: An algorithm for sequencing any number of jobs through two serial operations to minimize makespan.
Inventory Control
- Continuous Inventory System: A system in which the inventory level is continually monitored, and when it decreases to a certain level, a fixed amount is ordered.
- Periodic Inventory System: A system in which the inventory level is checked after a specific time period, and a variable amount is ordered, depending on the inventory in stock.
- ABC System: A method for classifying inventory items according to their dollar value to the firm, based on the principle that only a few items account for the greatest dollar value of total inventory.
Quality Management
- Quality: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Product Development
- Concept Development: The first phase of the typical phases of product development.
- List of Customer Requirements: The first step in building a house of quality in product development.
Supply Chain Management
- Facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.
Forecasting
- Time Series Forecasting: A type of forecast that uses historical data, assuming that the future will likely be similar to the past.
- Moving Average: A method that averages demand for a fixed sequence of periods, including the most recent period.
- Linear Trend Line: A forecast using a linear regression equation to relate demand to time.
- Delphi Method: A procedure for acquiring informed judgments and opinions from knowledgeable individuals to use as a subjective forecast.
- Regression Forecasting Method: A class of mathematical techniques that relate demand to factors that cause demand behavior.
Operations Management
- Operations: A function or system that transforms inputs into outputs of greater value.
- Economies of Scale: The number of units produced increases, the cost of producing each individual unit decreases.
- Diseconomies of Scale: Higher levels of output cost more per unit to produce.
Inventory Management
- Economic Order Quantity (EOQ): A fixed order quantity that minimizes total inventory costs.
- Ordering Cost: The cost of replenishing the stock of inventory, including requisition cost, transportation, and shipping.
- Reorder Point: A level of inventory in stock at which a new order is placed.
- Carrying Cost: The cost of holding an item in inventory, including lost opportunity costs, storage, rent, cooling, and lighting.
- Quantity Discount: A pricing schedule in which lower prices are provided for specific higher order quantities.
Production Planning
- Aggregate Production Planning: The process of determining the quantity and timing of production over an intermediate time frame.
- Material Requirements Planning (MRP): A computerized inventory control and production planning system for generating purchase orders and work orders of materials, components, and assemblies.
- Manufacturing Resource Planning (MRP II): A computerized system that plans all the resources necessary for manufacturing, including financial and marketing analysis, feedback loops, and overall business plan.
Operations Strategy
- Capacity: The maximum output rate or service capacity that an operation, process, or facility is designed for.
- Capacity Gap: The difference between future capacity requirement and present capacity requirement.
- Effective Capacity: The maximum output rate or service capacity that an operation, process, or facility is designed for, less personal and other allowances.
- Best Operating Level: The percent of capacity utilization at which unit costs are lowest.
Scheduling
- Sequencing: The process of assigning priorities to jobs so that they are processed in a particular order.
- Infinite Scheduling: An approach to scheduling that initially assumes infinite capacity and then manually "levels the load" of resources that have exceeded capacity.
- Finite Scheduling: An approach to scheduling that loads jobs in priority order and delays those jobs for which current capacity is exceeded.
- Johnson's Rule: An algorithm for sequencing any number of jobs through two serial operations to minimize makespan.
Inventory Control
- Continuous Inventory System: A system in which the inventory level is continually monitored, and when it decreases to a certain level, a fixed amount is ordered.
- Periodic Inventory System: A system in which the inventory level is checked after a specific time period, and a variable amount is ordered, depending on the inventory in stock.
- ABC System: A method for classifying inventory items according to their dollar value to the firm, based on the principle that only a few items account for the greatest dollar value of total inventory.
Quality Management
- Quality: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Product Development
- Concept Development: The first phase of the typical phases of product development.
- List of Customer Requirements: The first step in building a house of quality in product development.
Test your knowledge of supply chain management, including facilities, functions, and activities involved in producing and delivering a product or service, as well as forecasting techniques and strategies.
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