FINAL EXAM Flashcards
(22 cards)
Between a buyer and a seller, as time increases seller inventory goes ____________ as buyer inventory goes __________
Between a buyer and a seller, as time increases seller inventory goes up as buyer inventory goes down
True or False: your largest revenue customers are often your least profitable
True
ATD v. ATP
ATD - available to deliver, in dc ready to ship
ATP - available to promise, not yet in dc expecting shipment
As OCT increases, seller inventories __________ and buy inventories __________
As OCT increases, seller inventories decreases and buyer inventories increase
Why? Customer wait time - don’t have products = longer wait time
As service level increases, cash flow loss ________ and inventory _________
As service level increases, cash flow loss decreases and inventory increases
Internal things you can control that effect supply and demand
production flexibility
inventory quantity
External things you can control that effect supply and demand
price
leadtime
Good forecasts are a _______
good forecasts are a range of numbers
aggregate definition
a whole combined from several parts
ex. caps for gatorade all the same even though the flavors change
Aggregate forecasts are more accurate because they are larger numbers
Simple moving averages don’t account for
Simple moving averages don’t account for season, trend or business cycle
The more a line can make of a single item, the ______ the cost per unit but ________ total cost
The more a line can make of a single item, the lower the cost per unit but higher total cost
As service levels increase, inventory ________ at a _______ rate
As service levels increase, inventory increases at an increasing rate
OSD stands for ___________, _____________, and _________
Obsolescence, Shrinkage, and Damage
As volume (order size) increases, cost per order _________.
As volume (order size) increases, cost per order stays the same
As volume (order size) increases, total order costs ________
As volume (order size) increases, total order costs increase
Economic order quantity =
How much and when; where order costs and carrying costs intersect
As demand points decrease, relative variability and safety stock __________.
As demand points decrease, relative variability and safety stock decreases
What is the most important factor to assess when placing a DC?
Availability and cost of labor
As number of DCs increase, inventory _________ at an __________ rate.
As number of DCs increase, inventory increases at an increasing rate.
As number of DCs increase:
Cost of lost sales ______________
Outbound Transportation costs ________
Warehousing costs _______
As number of DCs increase:
Cost of lost sales decrease
Outbound Transportation costs decrease
Warehousing costs increase
Whats the largest cost driver in a DC?
order picking is the biggest cost driver in a DC
Whats the largest cost center for a DC?
Labor is the largest cost center for a DC
