final Flashcards
(37 cards)
which provides forecasting error measurement as a percentage
MAPE
what does correlation coefficient indicate
strength and direction of relationship between the independent variable and demand
for moving average, what offers more smoothing
higher N value
if a plot of past demand data shows an upward tend
choose a responsive time series forecasting method
what is a weakness of using market research for forecasting
response rates are typically low
if a linear trend forecast is Sales = 75+7 (ad$), 7 is the
rate of increase
optimal ordering amount for companies that order seasonal items should achieve a balance between [] and [] costs
stock-out; excess inv
the [] the[] the larger the safety stock
higher risk of stock-out
fundamental questions in inv
when and how much to order
a inventory turnover is 5, b is 3, what conclusions can we draw
a has higher risk of stock outs
retailers have primarily
finished goods
a [] count is less disruptive to daily operations than a [] count
cycle, physical
what does a plot of the level strategy look like compared to the forecast
flas at avg or min fore values
challenge with subcontracting
lose control over product
inventories and backorders are most commonly used as options for
level
hire fire is used in
chase
why is S n OP a challenging process
different objectives between departments
goal of S n OP
balance capacity and demand
ERP benefits
integrate information within a company and with major stakeholders
lot-for-lot =
production = net req
what are the inputs for an MRP
BOM, lead times, inv data, purchasing
MRP outputs
reports
difference between gross and net reqs
ordered and existing inv
what does the MPS indicate on the master schedule
planned quantities and timing of production
