Chapter 02 Working Capital

Question 1

Economic Ordering Quantity

Answer 1

Attempts to minimize total ordering and carrying cost

Question 1

JIT

Answer 1

Pull Approach
was developed to reduce the lag time between inventory arrival and inventory use.

Question 2

Kanban Inventory Control

Answer 2

Visual signals time to order

Question 3

Supply Chain Operations Reference

Answer 3

SCOR Model which attempts to create generic model for supply chain analysis.

There are 4 Keys management processes or core activities
1. Plan
2. Source.
3. Make
4. Deliver

Question 4

Plan

Answer 4

properly balance demand and supply
1. demand requirements - sales forecast
2. ability of the suppliers to supply resources
3. planning inventory levels.

Question 5

Source

Answer 5

Procure resources required to meet it
1. selecting vendors

Question 6

Make

Answer 6

Turn the raw material into finished products that are produced to meet planned demand
1. production process
2. manufacturing the product
3, testing product
4. packging the product

Question 7

Deliver

Answer 7

Activities of getting the finished product into the hands of the ultimate consumer to meet their planned demand.
1. managing orders - provide quote
2. forecast
3. pricing

Question 8

Material Requirement Planning

Answer 8

Is an inventory management technique that projects and plans inventory levels in order to control the usage of raw materials in the production process.