Week 6

Question 1

is the controlled and regular movement of inventory from an upstream point on the supply chain to a downstream location that requires sufficient stock to cover demand.

Answer 1

Replenishment

Question 2

also known as stock replenishment – helps avoid running out of inventory while preventing costly overstocking.

Answer 2

Inventory replenishment

Question 3

the expenses associated with buying things It costs money to buy things.

Answer 3

Cost of replenishment

Question 4

shifts the cost burden from the K Factor to the R Factor and vice versa.

Answer 4

Order size versus frequency of purchase

Question 5

calls for a replenishment approach to inventory management. This approach assumes that market forces will exhibit a somewhat fixed pattern. Therefore, stock is replenished as it is used to have items on hand for customers.

Answer 5

Independent demand

Question 6

calls for a requirements approach. When an assembly or finished item is needed, then the materials needed to create it are ordered. There is no fixed pattern because an assembly created in the past may never be produced again.

Answer 6

Dependent demand

Question 7

are used to determine how much of a given item needs to be ordered where there is independent demand

Answer 7

Order point formulae

Question 8

the lowest amount of an item you will have on hand and on order before you reorder.

Answer 8

ROP (reorder point)

Question 9

are based on some relatively simple concepts. Imagine that all of a particular SKU are kept in a single bin. If no reorder point was set, then the entire batch would be used up without any order being placed.

Answer 9

Min-max Inventory Systerm Order Point formulae

Question 10

Controlling not only what item is purchased and in what quantities. but also, the timing of its arrival through computerized

Answer 10

Materials requirements planning

Question 11

This concept of the right item, in the right quantity, and at the right time was first introduced

Answer 11

Joseph Orlicky in 1975.

Question 12

Is costumer oriented

Answer 12

Independent demand inventory

Question 13

manufacturing oriented.

Answer 13

Dependent demand inventory

Question 14

The objective of dependent demand in control is to support the

Answer 14

Master production schedule

Question 15

sets out what will be built, when, and in what quantities

Answer 15

Master production schedule

Question 16

Master production inventory can either cover

Answer 16

Short horizon
Long horizon

Question 17

planning of initial requirements sets out:

Answer 17

Short horizon

Question 18

estimating long term requirements sets out:

Answer 18

Long horizon

Question 19

is the recipe of raw materials, parts, subassemblies, and so on required to build of make something.

Answer 19

Bill of materials

Question 20

There are level of each BOM. Inventory is relieved from stock after each level of the BOM is completed. This technique called

Answer 20

Black flushing