BUS 370 FINAL CH - 11-14 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

BUS 370 FINAL CH - 11-14 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 inventory - Answers According to APICS, "those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies) and customer service (finished goods and spare parts)." cycle stock - Answers Components or products that are received in bulk by a downstream partner, gradually used up, and then replenished again in bulk by the upstream partner. Safety stock - Answers Extra inventory that a company holds to protect itself against uncertainties in either demand or replenishment time. anticipated inventory - Answers Inventory that is held in anticipation of customer demand. hedge inventory - Answers According to APICS, a "form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair the company's strategic initiatives." Transportation inventory - Answers Inventory that is moving from one link in the supply chain to another. smoothing inventory - Answers Inventory that is used to smooth out differences between upstream production levels and downstream demand. inventory drivers - Answers Business conditions that force companies to hold inventory. supply uncertainty - Answers The risk of interruptions in the flow of components from upstream suppliers. demand uncertainty - Answers The risk of significant and unpredictable fluctuations in downstream demand. independent demand inventory - Answers Inventory items whose demand levels are beyond a company's complete control. dependent demand inventory - Answers Inventory items whose demand levels are tied directly to the production of another item. periodic review system - Answers An inventory system that is used to manage independent demand inventory. The inventory level for an item is checked at regular intervals and restocked to some predetermined level. service level - Answers A term used to indicate the amount of demand to be met under conditions of demand and supply uncertainty. continuous review system - Answers An inventory system used to manage independent demand inventory. The inventory level for an item is constantly monitored, and when the reorder point is reached, an order is released. economic order quantity - Answers (EOQ) The order quantity that minimizes annual holding and ordering costs for an item. single-period inventory system - Answers A system used when demand occurs in only a single point in time. target service level - Answers SLT For a single-period inventory system, the service level at which the expected cost of a shortage equals the expected cost of having excess units. target stocking point - Answers (TS) For a single-period inventory system, the stocking point at which the expected cost of a shortage equals the expected cost of having excess units. bullwhip effect - Answers According to APICS, "an extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain." inventory pooling - Answers Holding safety stock in a single location instead of multiple locations. Several locations then share safety stock inventories to lower overall holding costs by reducing overall safety stock levels. Planning and Control - Answers A set of tactical and execution-level business activities that includes master scheduling, material requirements planning, and some form of production activity control and vendor order management. Master Scheduling - Answers A detailed planning process that tracks production output and matches this output to actual customer orders. forecasted demand - Answers In the context of master scheduling, a company's best estimate of the demand in any period. booked orders - Answers In the context of master scheduling, confirmed demand for products. Master Production Schedule (MPS) - Answers (MPS) The amount of product that will be finished and available for sale at the beginning of each week. The master production schedule drives more detailed planning activities, such as material requirements planning. Projected ending inventory - Answers A field in the master schedule record that indicates estimated inventory level at the end of each time period. Available to promise (ATP) - Answers A field in the master schedule record that indicates the number of units that are available for sale each week, given those that have already been promised to customers. planning horizon - Answers The amount of time the master schedule record or MRP record extends into the future. In general, the longer the production and supplier lead times, the longer the planning horizon must be. rough-cut capacity planning - Answers A capacity planning technique that uses the master production schedule to monitor key resource requirements. Material requirements planning - Answers A planning process that translates the master production schedule into planned orders for the actual parts and components needed to produce the master schedule items. dependent demand inventory - Answers Inventory items whose demand levels are tied directly to the production of another item. bill of material (BOM) - Answers (BOM) According to APICS, "a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly." product structure tree - Answers A record or graphical rendering that shows how the components in the BOM are put together to make the level 0 item. planning lead time - Answers In the context of MRP, the time from when a component is ordered until it arrives and is ready to use. exploding the BOM - Answers The process of working backward from the master production schedule for a level 0 item to determine the quantity and timing of orders for the various subassemblies and components. Exploding the BOM is the underlying logic used by MRP. parent/ child relationship - Answers The logical linkage between higher- and lower-level items in the BOM. MRP nervousness - Answers A term used to refer to the observation that any change, even a small one, in the requirements for items at the top of the bill of material can have drastic effects on items further down the bill of material. Job sequencing rules - Answers Rules used to determine the order in which jobs should be processed when resources are limited and multiple jobs are waiting to be done.