Supply Chain Final Exam UARK Questions And Answers

walmart supply chain strategy - ANS closer to DC, cheaper land, lower transportation costs logistics - ANS management of the flow and storage of inventory such that total cost is minimized and customer service targets are achieved SCM - ANS integration of business processes between functions in a firm and with suppliers and customers activity - ANS inputs, outputs, controls, mechanisms process improvement and redesign - ANS concerned with increasing reliability without changing the order of activities outsourcing - ANS when an activity or set of activities is turned over to a third party to manage 3PL - ANS a company that works with shippers to manage their logistics operations 4 Rs + 1 - ANS responsiveness, reliability, resilience, relationships, cost changing competitive environment - ANS new rules of competition, globalization of industry, downward pressure on price, customers taking control customer service components - ANS pre-transactions (overall policies), transaction (PTIS, fill rate, lead time), post-transaction (service after an item is purchased) ABC Analysis - ANS class A: 20 80 class B: 50 15 Class C: 30 5 stock out - ANS we dont have any inventory to sell backorder - ANS we don't have the inventory, but its on order ROA - ANS how profitable a company is compared to its total assets increase, decrease - ANS as distribution centers increase, our inbound transportation costs _________, and outbound transportation costs __________ Horizontal - ANS demand that is short term, sales are flat trend - ANS demand that is one year or so, X shape seasonal - ANS demand that is a couple of years, up and down fluctuations cyclical - ANS demand that is long term, changes with economy Qualitative - ANS greater subjectivity, judgemental methods (jury of exec. opinion, sales force estimation, delphi) or market research methods (focus groups, consumer surveys) Quantitative - ANS mathematical, historical data, time series (based on historical demand) or causal modeling (demand is influenced by one or more variables) Moving average - ANS places the same weight on each time period, works when demand is fairly stable, forecast lags actual demand because of the averaging effect weighted moving average - ANS different emphasis placed on each time period, good when demand is stable, not a good job when theres a trend, lags actual demand because of averaging effect exponential smoothing - ANS works best with data without a trend, sophisticated weighted moving average, lags actual demand forecast error - ANS difference between actual demand and forecast running sum of forecast error - ANS measures the average magnitude or size of the forecast errors or bias positive - ANS running sum of forecast error- inventory is low, stock outs may occur negative - ANS running sum of forecast error - inventory is high, costs higher Mean absolute deviation - ANS measures the average magnitude of forecast errors without regard to direction of error mean absolute % error - ANS relative measure for evaluating forecast accuracy p value - ANS represents the probability of obtaining a value of the test statistic equal to or more extreme than the value actually observed significance F - ANS significance of overall regression model coefficient of determination - ANS how well the regression model fits the data 0=no fit 1=perfect fit volatility - ANS likely to change rapidly and unpredictably effectiveness - ANS ability to respond to requirements of a fragmented and volatile marketplace customer level - ANS point of sale, forecasts, inventory levels, promotional plans supplier level - ANS inventory levels, order lead time/delivery, advanced shipment notice, finished goods location status POS - ANS how much did customers actually purchase in a particular period of time at a particular location or group of locations EDI - ANS provides retailers a mechanism through which to share data with suppliers internal integration - ANS the way the organization structures its practices and processes mainly involved the integration of data and information systems