LSCM 3960 ch 7 Exam Solved 100% Correct

LSCM 3960 ch 7 Exam Solved 100% Correct materials management (and physical supply) - Answer- The movements and storage functions associated with supplying goods to a firm. Demand Management - Answer- Focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions. External balancing methods - Answer- Methods that are used in an attempt to change the manner in which customers order in an attempt to balance the supply-demand gap. Internal balancing Methods - Answer- Methods that utilize an organization's internal processes to manage the supply-demand gap. Forecasting - Answer- Estimation of future phenomena, such as customer demand, transit times, seasonal usage of product, etc. Forecasts are used for long-term, mid-range, and short-term purposes. outbound-to-customer logistics systems - Answer- The processes, systems, and capabilities that enhance an organization's ability to serve its customers. inbound-to-operations logistics systems - Answer- The activities and processes that precede and facilitate value-adding activities such as procurement, manufacturing, and assembly. Independent Demand - Answer- The demand for a primary item Dependent Demand - Answer- Demand that is directly influenced by the demand for the independent item. Base Demand - Answer- The demand for independent demand items. Random Variation - Answer- A type of demand fluctuation that cannot be anticipated and is usually the cause to hold safety stocks to avoid stockouts. Trend - Answer- The gradual increase or decrease in demand over time for an organization. Simple Moving Average - Answer- This method simply averages a predetermined number of periods and uses this average as the demand for the next period. Each time the average is computed, the oldest demand is dropped and the most recent demand is included. Bias - Answer- A measure of how accurate a forecast is compared to actual demand. A positive bias means that the demand was higher than forecast during the forecast period, resulting in stockouts; a negative bias means the demand was lower than the forecast, resulting in excess inventories. Weighted Moving Average - Answer- A method that assigns a weight to each previous period with higher weights usually given to more recent demand. The weights must equal to one. Exponential Smoothing - Answer- Exponential smoothing needs three types of data: an average of previous demand, the most recent demand, and a smoothing constant. The smoothing constant must be between 0 and 1. Using a higher constant assumes that the most recent demand is a better predictor of future demand. sales and operations planning process (S&OP) - Answer- A five-step process that can be used to arrive at a consensus forecast. collaborative planning, forecasting and replenishment (CPFR) - Answer- Seeks to enhance vendor-managed inventory and continuous replenishment through a more proactive means of information sharing between supply chain partners. Supply chain partners collaborate on things like sales planning, promotions, forecasts, delivery means, and inventory levels throughout the supply chain to improve service and to drive revenue growth. Communication in CPFR encompasses the gamut from web-based systems to periodic face-to-face planning sessions. collaborative transportation management (CTM) - Answer- A cooperative approach to managing transportation services among several organizations in a supply chain to improve service and reduce costs. Channel of Distribution - Answer- A means by which a manufacturer distributes products from the plant to the ultimate user, including warehouses, brokers, wholesalers, retailers, etc. Logistics Channel - Answer- The network of intermediaries engaged in transfer, storage, handling, and communications functions that contribute to the efficient flow of goods. Marketing Channel - Answer- The means by which necessary transactional elements are managed (for example, customer orders, billing, accounts receivable, etc.). 4 functions of Logistics Channel - Answer- sorting out, accumulating, allocating, and assorting integrated fulfillment - Answer- Many retailers today maintain both a "bricks-and-mortar" and "clicks-and-mortar" presence to the consumer. That is, retailers have both retail stores as well as Internet sites where consumers can buy direct. Integrated fulfillment means the retailer operates one distribution network to service both of these channels.