Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

SCM 2160 > SCM 2160 - Midterm 2 > Flashcards

SCM 2160 - Midterm 2 Flashcards

1
Q

What is a forecast?

A

A prediction of future events used for planning purposes
Based on historical data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a time series pattern?

A

Repeated observations of demand for a product/service in order of appearance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a horizontal time series pattern?

A

Fluctuation of data around a constant mean (average demand, is relatively consistent)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a trend time series pattern?

A

Systematic increase or decrease in the mean over time. Looking at a long time (not just day to day, the long run trend)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a seasonal time series pattern?

A

Repeatable pattern of increases or decrease in demand, depending on time of day, week, month, season

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a cyclical time series pattern?

A

Less predictable, gradual increases in demand over long periods of time (years / decades)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a random time series pattern?

A

Un-forecastable variation in demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are examples of inputs to use in forecasting?

A

History of past demand
Notes explaining past demand
Past forecasts
Customer research
Planned promotions
Inputs from partners via CPFR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does CPFR stand for?

A

Collaborative Planning, Forecasting & Replenishment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does CPFR do?

A

Generate a shared forecast,
independent forecasts are generated and compared, they are adjusted until the forecasts approach consensus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What can CPFR help avoid?

A

It can reduce the bullwhip effect
Avoid stock outs
You can feel more certain that you can satisfy demand (retailer)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are four popular time series methods?

A

Naive
Simple moving average
Weighted moving average
Exponential smoothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the naive forecast method?

A

Only appropriate for short term forecasts
Sensitive to random variation
Ft+1 = Dt
Forecast for future period = actual demand in most recent period (t)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the simple moving average forecast method?

A

Forecast for the next period equals the average demand for n most recent periods
This smooths out random variation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How many periods do you have to wait before starting a simple moving average

A

Since this formula takes the average of previous periods, you need at least two previous periods to take the average of before you can start forecasting with it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a weighted moving average?

A

The forecast for the next period equals the average demand for n most recent periods. Each observation of demand can have its own weight, with the sum = 1
The weights represent the varying amounts of influence of past demand on the forecast

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How many periods do you have to wait before starting a simple moving average?

A

You need 3 periods of information, assigning each of those 3 different weights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is exponential smoothing forecast method?

A

A weighted moving average assigning different levels of weight to recent data compared to older historical data
This requires only three data points:
- last periods forecast
- last periods demand
- smoothing parameter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does a low ‘a’ value mean for the exponential smoothing forecast?
What does a high a value mean?

A

low value = more smoothing
high value = more responsive to changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How many periods do you have to wait before starting a exponential smoothing forecast?

A

One period before you can start

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is forecast error?

A

The difference between predicted demand and actual demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the four different methods to measure forecast error?

A

Cumulative sum of forecast errors (CFE)
Mean squared error (MSE)
Mean absolute deviation (MAD)
Mean absolute percentage deviation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the cumulative sum of forecast errors (CFE)

A

Assess total error in forecasts overtime

Calculates the error for each forecast then sum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What does it mean when CFE is really negative?

A

forecasts are consistently higher than demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What does it mean when CFE is highly positive?
That the forecast is consistently lower than demand
26
What is the mean squared error?
Indicates on average how close forecast is to demand Magnifies large errors
27
What is the mean absolute deviation?
Simple measure of magnitude of error, does not reveal directional bias
28
What is mean absolute percentage error?
Contextualizes magnitude of error relative to demand
29
What is the definition of inventory?
A stock of items including materials, orders, information, and people that flow through or are used in a process to satisfy customer demand
30
What does Little's Law tell you?
That throughput time increases with work in progress
31
What are inventory holding costs?
Variable costs of keeping items in inventory, a per unit cost
32
What are ordering costs?
The costs associated with the act of placing an order. Fixed cost per order, regardless of the number of units ordered Example: staffing costs for receiving
33
What is safety stock?
Inventory that is held to protect against uncertainty in demand, lead time, processing time, quality and supply
34
What is decoupling?
Inventory that accommodates different rates of production in a system
35
What is pipeline inventory?
Inventory moving from point to point in the system (including materials on their way from suppliers)
36
What is anticipation inventory?
Inventory used to manage predictable variation in demand
37
What is cycle inventory?
The portion of your total inventory that varies based on the size of an order or production batch
38
How do you calculate total annual cost?
Average cycle inventory x holding cost + number of orders per year x cost per order (setup cost)
39
What is economic order quantity (EOQ)?
it is the value of Q that gives you the lowest total annual inventory costs
40
What are independent demand?
Demand, which is influenced by market conditions and is not related to inventory decisions for other items in stock.
41
What is continuous review?
The system automatically orders new inventory when it reaches a set reorder point. The order sizes is consistent (time between the orders changes)
42
What is periodic review?
Inventory review happens at fixed time intervals, the order size is determined by current inventory
43
What is the protection interval?
The time interval for which inventory must be planned when each new order is placed
44
What are the benefits of continuous review?
Can reduce holding and ordering costs by tailoring the reorder point Fixed order sizes may support quantity discounts Requires less safety stock
45
What are the benefits of periodic review?
Supports standardization of deliveries scheduling of inventory assessments Opportunities to combine orders for multiple products from same supplier Does not require computerized inventory management system
46
How long is a long term plan (in years)
2-10 years
47
How long is a medium term plan?
6-18 months
48
How long is a short term plan?
Weekly / daily
49
What is a level strategy?
Constant production rate Use of overtime and under time, no hiring or firing Demand variability dealt by inventory, back orders, overtime, under time, subcontracting Good workforce stability
50
What is a chase strategy?
Production chases demand You are hiring and firing workers often to keep inline with demand Good for minimizing inventory, bad for employee morale
51
What is material requirements planning (MRP)?
A computerized information system developed to help manage dependent demand inventory and schedule replenishment orders
52
What is dependent demand?
The quantity required is a function of the demand for other items produced or held in inventory
53
What is dependent demand based on?
Parents and components
54
Break down a bike in terms of parents and components
The is a parent, the wheel is a component, the spokes on the wheel are sub components
55
What is a bill of materials?
A record of all the parent component relationships for a particular item derived from engineering and process designs
56
What is a end item?
The final product sold to the customer
57
What is a intermediate item?
An item with at least one parent and at least one component Example: A lamp shade
58
What are subassemblies?
An intermediate item assembled from more than one component
59
What is a purchased item?
A item with one or more parents, but no components because it comes from a supplier Example: Lightbulb
60
What are part commonality?
The degree to which a component has more than one parent
61
What is inventory record?
Contains information about lot size policies, lead time, and different elements of time phased data
62
What are gross requirements?
Total requirements for a component derived from all of its parent production plans, as well as demand for replacement parts
63
What are scheduled receipts?
orders that have been placed by have not been received
64
What is a fixed order quantity?
Same order quantity is placed each time an order is issued
65
What is a periodic order quantity (POQ)?
Orders issued at pre determined intervals
66
What is lot for lot L4L?
Lot size ordered covered gross requirements for a single week
67
What are remnants?
When you hold onto some inventory longer than you want to, but it creates a buffer

SCM 2160 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions