LSCM 3960 EXAM 2 Graded A+ (Verified) Brand New!!

LSCM 3960 EXAM 2 Graded A+ (Verified) Brand New!! What is offshoring? - Answer- Relocating an activity to a contract manufacturer in another country. What utility do manufacturing and production operations create? - Answer- Form utility. What is the mistake when a manager raises production volume even though current levels already meet orders? - Answer- Overemphasizing capacity; increasing output when it is not needed. What metric is a manager focused on when weekly capacity is 83% and they want 90%? - Answer- Capacity utilization. What factors impact process capacity? - Answer- Product type and production methods. Why is packaging important in manufacturing? - Answer- It is very important in the manufacturing operation. What is the bullwhip effect? - Answer- Forecast errors are magnified and demand variability increases. What is capacity? - Answer- The amount that can be produced. In assemble-to-order production, what does the finished product typically consist of? - Answer- Standard modules/components assembled after the order is received. What is the purpose of feedback in production processes? - Answer- To compare actual performance to standards and make corrections. Did organizations historically achieve complete consensus among functional forecasts? - Answer- No. What is phantom demand? - Answer- Extra demand created by over-ordering during peak demand. What does a weighted moving average do? - Answer- Assigns higher weights to more recent periods. What is dependent demand? - Answer- Demand directly influenced by independent demand. What does CPFR stand for in practice? - Answer- Collaborative planning, forecasting, and replenishment among supply chain partners. What forecast error calculation helps reveal a stockout? - Answer- Forecast error. Why is MAD a good measure of forecast accuracy? - Answer- It measures average absolute error and is easy to interpret. What is one demand fluctuation that requires safety stock? - Answer- Uncertainty or variability in demand. What does a forecast always assume? - Answer- That future demand can be estimated from patterns in past data. What strategy helps balance supply and demand by allowing quick product-line switching? - Answer- Flexible production lines / flexible manufacturing. Does a stockout always result in a backorder? - Answer- No. What is one possible result when a seller cannot meet demand? - Answer- Loss of future revenue and a customer. Why is employee training important in service failures? - Answer- It helps employees respond quickly and properly when mistakes happen. What does Activity-Based Costing allocate costs based on? - Answer- Activities and their drivers, not a single fixed predetermined measure. What is service recovery? - Answer- Responding to and fixing service failures after they occur. What concept is shown when customers complain but the firm sees no negative consequences? - Answer- Failure to recognize service quality problems. What are the three full days between breakdown and repair called? - Answer- Repair cycle time. What are the two parts of the order management process? - Answer- Order processing and order fulfillment. What is perfect order rate? - Answer- The percentage of orders delivered completely, correctly, on time, and with accurate paperwork. Which order cycle length requires the most inventory during lead time? - Answer- The longest order cycle length.