SCM 300 Exam 1 Modules 1-4
(Chaturvedi)-Graded A
1. cost
2. quality
3. speed/time
4. flexibility - ANS-Competitive priorities of SCM
a company's direct supplier. A firm that directly provides goods and/ or services to a
company - ANS-1st Tier Suppliers
a firm provides goods and/ or services to a company's first-tier supplier - ANS-2nd Tier
Suppliers
A legally binding document issued by a buyer to a seller, indicating the types, quantities,
and agreed prices for products or services. - ANS-PO (Purchase Order)
A refrigerated container used for transporting perishable goods that require
temperature-controlled environments, such as fruits, vegetables, dairy products, and
pharmaceuticals. - ANS-Reefer (Controlled Atmosphere (CA) Containers)
Additional inventory held to mitigate the risk of stockouts due to unexpected fluctuations
in demand or supply. - ANS-Safety Stock
AHC, or Annual Holding Cost, is the cost associated with holding inventory for a specific
period.
It's calculated by multiplying the average inventory level by the holding cost per unit. -
ANS-Calculate AHC (Annual Holding Cost)
Anticipation Inventory, Pipeline Inventory, MRO (Maintenance, Repair, and Operations),
WIP (Work-in-Progress), FG (Finished Goods). - ANS-Types of Inventory
AOC, or Annual Ordering Cost, is the cost associated with placing orders for inventory,
including costs such as ordering, shipping, and handling.
It's calculated by multiplying the number of orders per year by the ordering cost per
order - ANS-Calculate AOC (Annual Ordering Cost)
buy it -> make it -> move it -> sell it -> service it - ANS-SCM Flows/Strategy
, Centralized: Purchasing decisions are made by a single authority or department.
Decentralized: Purchasing authority is distributed across different departments or
locations. - ANS-Centralized vs. Decentralized Purchasing
Classification of suppliers based on factors such as strategic importance, performance,
and relationship with the buyer. - ANS-Supplier Tiers
Contains end item and primary packaging (Box, Case, Drum, Shrink Wrap) - ANS-
Secondary Packaging
Developing the transportation itinerary and finding reliable transportation and storage
partners, to be able to navigate the flow of materials to the final destination - ANS-
Logistics (move it)
Economic Order Quantity (EOQ) is the optimal order quantity that minimizes total
inventory holding costs and ordering costs.
The formula to calculate EOQ is: EOQ=√(2DS/H) Where:
D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit per year - ANS-What is EOQ? How do you calculate it
Free flowing cargo, stored loose... loaded by shovel, pump, bucket or scoop
Ex: coal, rice, grain, raw sugar, oil, sulfur - ANS-Bulk Cargo
General or packaged cargo... often containerized and measured in TEU's
Ex: bagged or boxed rice, canned goods, boxed electronics - ANS-Containerized Cargo
In contact with the end item (Plastic bag, Can, Bottle, Shrink Wrap) - ANS-Primary
Packaging
Includes the control and optimization of inventory levels to meet demand while
minimizing costs. - ANS-Inventory Management
Intermodal transportation method where cargo containers are transported on flat railway
cars. - ANS-COFC (Container on Flat Car)
Intermodal transportation method where entire trailers are loaded onto flat railway cars.
- ANS-TOFC (Trailer on Flat Car)
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory - ANS-Inventory
Turn
(Chaturvedi)-Graded A
1. cost
2. quality
3. speed/time
4. flexibility - ANS-Competitive priorities of SCM
a company's direct supplier. A firm that directly provides goods and/ or services to a
company - ANS-1st Tier Suppliers
a firm provides goods and/ or services to a company's first-tier supplier - ANS-2nd Tier
Suppliers
A legally binding document issued by a buyer to a seller, indicating the types, quantities,
and agreed prices for products or services. - ANS-PO (Purchase Order)
A refrigerated container used for transporting perishable goods that require
temperature-controlled environments, such as fruits, vegetables, dairy products, and
pharmaceuticals. - ANS-Reefer (Controlled Atmosphere (CA) Containers)
Additional inventory held to mitigate the risk of stockouts due to unexpected fluctuations
in demand or supply. - ANS-Safety Stock
AHC, or Annual Holding Cost, is the cost associated with holding inventory for a specific
period.
It's calculated by multiplying the average inventory level by the holding cost per unit. -
ANS-Calculate AHC (Annual Holding Cost)
Anticipation Inventory, Pipeline Inventory, MRO (Maintenance, Repair, and Operations),
WIP (Work-in-Progress), FG (Finished Goods). - ANS-Types of Inventory
AOC, or Annual Ordering Cost, is the cost associated with placing orders for inventory,
including costs such as ordering, shipping, and handling.
It's calculated by multiplying the number of orders per year by the ordering cost per
order - ANS-Calculate AOC (Annual Ordering Cost)
buy it -> make it -> move it -> sell it -> service it - ANS-SCM Flows/Strategy
, Centralized: Purchasing decisions are made by a single authority or department.
Decentralized: Purchasing authority is distributed across different departments or
locations. - ANS-Centralized vs. Decentralized Purchasing
Classification of suppliers based on factors such as strategic importance, performance,
and relationship with the buyer. - ANS-Supplier Tiers
Contains end item and primary packaging (Box, Case, Drum, Shrink Wrap) - ANS-
Secondary Packaging
Developing the transportation itinerary and finding reliable transportation and storage
partners, to be able to navigate the flow of materials to the final destination - ANS-
Logistics (move it)
Economic Order Quantity (EOQ) is the optimal order quantity that minimizes total
inventory holding costs and ordering costs.
The formula to calculate EOQ is: EOQ=√(2DS/H) Where:
D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit per year - ANS-What is EOQ? How do you calculate it
Free flowing cargo, stored loose... loaded by shovel, pump, bucket or scoop
Ex: coal, rice, grain, raw sugar, oil, sulfur - ANS-Bulk Cargo
General or packaged cargo... often containerized and measured in TEU's
Ex: bagged or boxed rice, canned goods, boxed electronics - ANS-Containerized Cargo
In contact with the end item (Plastic bag, Can, Bottle, Shrink Wrap) - ANS-Primary
Packaging
Includes the control and optimization of inventory levels to meet demand while
minimizing costs. - ANS-Inventory Management
Intermodal transportation method where cargo containers are transported on flat railway
cars. - ANS-COFC (Container on Flat Car)
Intermodal transportation method where entire trailers are loaded onto flat railway cars.
- ANS-TOFC (Trailer on Flat Car)
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory - ANS-Inventory
Turn
