Flash Cards

1/6/14
Printable Flash Cards
Term 1
Definition 1
The decisions supported by ____ are: What decisions does master scheduling and control support? MPS RCCP Schedule control
Term 2
Definition 2
The forecast techniques for ____ are: What are the forecasts techniques for strategic and business planning? Market research Expert opinion Management estimation Casual analysis
Term 3
Definition 3
It is the role of management to reconcile the differences between the ____ forecast and the ____ forecast
It is the role of ____ to reconcile the differences between the business forecast and the roll-up forecast
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Term 4
Definition 4
What are the 3 keys to successful forecasting, in order of importance?
The 3 keys to successful ____ are, in order of importance: 1) People (make the right decisions on which model to use) 2) Data (access to, and whata data are relevant) 3) Software (support forecast requirements)
Term 5
Definition 5
The 4 components of ____ and ____ to managing the forecast are: What are the 4 components of 1) Ownership accountability and responsibility to the 2) Forecast analyst managing the forecast? 3) Inputs from other departments 4) One set of numbers
Term 6
Definition 6
The ____ horizon should be as long as How long should the forecast horizon required by the process it supports be? (per APICS book, no more specific than that)
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Term 7
Definition 7
For strategic and business planning, how long should the forecast time horizon be?
For ____ the forecast time horizon should be 3 years or longer
Term 8
Definition 8
For ____ the forecast time horizon will For sales and operation planning, how vary depending on the order fulfillment long should the forecast time horizon lead time for the product lines. Could be? be from several months to a year or more
Term 9
Definition 9
For master scheduling, how long should the forecast time horizon be?
For ____ the forecast time horizon is derived from the S&OP by dividing months up through the planning time fence (and slightly beyond) into weeks by 4, 4.3, or 5
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Term 10
Definition 10
For annual budget planning, how long should the forecast time horizon be?
For ____ the forecast time horizon should span 15 months (start 3 months before the budget year)
Term 11
Definition 11
For financial planning, how long should the forecast time horizon be?
For ____ the forecast time horizon should be rolling, extending at least 12 months
Term 12
Definition 12
Forecast interval
The duration of the time period used in the forecast
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Term 13
Definition 13
What are the 3 durations of forecast intervals?
The 3 durations of ____ are: 1) Weekly 2) Monthly 3) Quarterly
Term 14
Definition 14
What are the advantages of weekly intervals?
The advantages of ____ intervals for forecasting are: - Necessary for master scheduling - Can be easily achieved by dividing monthly product family forecasts into buckets for individual products
Term 15
Definition 15
What are the disadvantages of weekly intervals?
The disadvantages of ____ intervals for forecasting are: - Increases data management - Imparts a false sense of precision (in some industries)
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Term 16
Definition 16
What are the advantages of monthly intervals?
The advantages of ____ intervals for forecasting are: - Gives adequate level of forecasting (Not too detailed) - Allows detection of seasonal patterns that might be hidden in other forecast intervals
Term 17
Definition 17
What are the advantages of quarterly intervals?
The advantages of ____ intervals for forecasting are: - Great for industries with long production lead times (ETO) - Appropriate in later years of a multiyear forecast
Term 18
Definition 18
What are the disadvantages of quarterly intervals for forecasting?
The disadvantages of ____ intervals for forecasting are: May hide seasonal demand patterns
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Term 19
Definition 19
Overall, what seems to be the most versatile and useful forecast interval?
Overall ____ seems to be the most versatile and useful forecast interval
Term 20
Definition 20
FORMULA: Coefficient of variation (CV)
FORMULA: =(standard deviation of period demand)/(average period demand)
Term 21
Definition 21
What are 4 examples of forecasting models?
4 examples of ____ models are: 1) Judgmental 2) Quantitative 3) Statistical 4) Mathematical
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Term 22
Definition 22
Some examples of factors that have to be considered for selection of ____ models are: What are some examples of factors that have to be considered for selection of forecasting models? Manufacturing environment (MTO, ATO, MTS) Customer service Safety stock implication Profitability
Term 23
Definition 23
On the forecast model grid, what factor is on the Y-axis?
On the forecast model grid, the factor on the ____-axis is volume (high, low demand)
Term 24
Definition 24
On the forecast model grid, the factor On the forecast model grid, what factor on the ____-axis is variance (high, low is on the X-axis? variance)
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Term 25
Definition 25
On the forecast model grid, what are the implications for ____: On the forecast model grid, what are the implications for Position 1 (High demand, high variance) Use aggregate forecast and then ATO Collaborate with customer on demand planning
Term 26
Definition 26
On the forecast model grid, what are the implications for Position 2 (Low demand, high variance)
On the forecast model grid, what are the implications for ____: - High risk of obsolete inventory - Check profitability - Customer service risk - Consider MTO only
Term 27
Definition 27
On the forecast model grid, what are the implications for Position 3 (Low demand, low variance)
On the forecast model grid, what are the implications for ____: - Aggregate forecast and inventory if possible - Consider MTO
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Term 28
Definition 28
On the forecast model grid, what are the implications for Position 2 (High demand, low variance)
On the forecast model grid, what are the implications for ____: - Use statistical forecasting techniques - MTS
Term 29
Definition 29
The forecasting grid relates forecasting to which 3 things?
The ____ relates forecasting to: 1) Inventory 2) Safety stock 3) Manufacturing environment choices
Term 30
Definition 30
A CV of (less than)/(greater than) 1 is considered ____/____
A CV of (____ than)/(____ than) 1 is considered (low-variance)/(highvariance)
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Term 31
Definition 31
The 8 steps of the ____ process are: 1) Data gathering and preparation 2) Forecast generation 3) Volume and mix reconciliation #1 What are the 8 steps of the forecasting 4) Applying judgement process? 5) Volume and mix reconciliation #2 6) Decision making and authorization 7) Volume and mix reconciliation #3 8) Documenting assumptions (all feed into)
Term 32 Definition 32
What happens during the data gathering and preparation step of the forecasting process?
During the ____ step of the forecasting process: - Complete data gathering from last period's demand - Use bookings or incoming orders (as opposed to shipments) - Send requests for forecast data and judgement inputs to teams
Term 33
Definition 33
What happens during the forecast generation step of the forecasting process?
During the ____ step of the forecasting process: - Run statistical forecasting application - Collate and analyze demand data, information from promotions, and judgmental data
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Term 34
Definition 34
During the ____ step of the forecasting process: - Ensure aggregate product-volume What happens during the volume and and product-mix forecasts are the mix reconciliation #1 step of the same (in terms of physical units) forecasting process? - Either disaggregate S&OP product family into end items OR forecast at both aggregate and mix levels
Term 35
Definition 35
What happens during the applying judgement step of the forecasting process?
During the ____ step of the forecasting process: - Analyze the statistical sales forecast - Apply new judgments/validate earlier judgments - Synthesize statistical forecast data and management inputs and judgments
Term 36
Definition 36
What happens during the volume and mix reconciliation #2 step of the forecasting process?
During the ____ step of the forecasting process: - Reconcile volume and product mix forecasts
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Term 37
Definition 37
What happens during the decision making and authorization step of the forecasting process?
During the ____ step of the forecasting process: - Selection of appropriate time series and causal forecasting techniques
Term 38
Definition 38
What happens during the volume and mix reconciliation #3 step of the forecasting process?
During the ____ step of the forecasting process: - Reconcile any differences in volume and product mix forecasts
Term 39
Definition 39
What happens during the documenting assumptions step of the forecasting process?
During the ____ step of the forecasting process: - Record explain assumptions, inputs from stakeholders, decisions made
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Term 40
Definition 40
Why is it particularly important to document assumptions made in the forecasting process?
It is particularly important to ____ in the forecasting process for: - Review and authorization by senior executives - Evaluating the forecast later to explain the discrepancies between forecast and actual demand
Term 41
Definition 41
What are the 2 main categories of forecasting techniques?
The 2 main categories of ____ techniques are: 1) Quantitative 2) Qualitative
Term 42
Definition 42
What are the 2 types of quantitative forecasts?
The 2 types of ____ forecasts are: 1) Time series (intrinsic) 2) Causal (extrinsic)
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Term 43
Definition 43
What are the 2 types of qualitative techniques?
The 2 types of ____ techniques are: 1) Subjective 2) Judgemental
Term 44
Definition 44
What are some external factors of forecasting?
Some ____ factors of forecasting are: - Customers - Competition - Economic outlook - Demographics - Disruptive events - Market life cycle - Emerging technology
Term 45
Definition 45
What are 7 internal factors of forecasting?
Some ____ factors of forecasting are: - New products - Product life cycle - Pricing and promotions - Bids - Historical data - Management judgement - Intra-company demand
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Term 46
Definition 46
External factors are things that you (can)/(can't) control
____ factors are things that you can't control
Term 47
Definition 47
Internal factors are things that you (can)/(can't) control
____ factors are things that you can control
Term 48
Definition 48
Some effects that ____ have on the external factors of the forecasting are: - Dependability of ordering processes What effects do customers have on the - New prospects and advance the external factors of the forecasting? notification - Closeness of relationships with suppliers
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Term 49
Definition 49
Some effects that ____ have on the external factors of the forecasting are: What effects does competition have on - Long-term strategic moves the the external factors of the - Manufacturing (plant closures, quality forecasting? issues) - Recent moves and announcements that affect sales
Term 50
Definition 50
Some effects that ____ have on the external factors of the forecasting are: - Sales of certain products correlate What effects do economic outlook and with leading economic indicators demographics have on the the external (house sales, employment levels) factors of the forecasting? - Sales correlate with demographic factors (income levels, population growth)
Term 51
Definition 51
Some effects that ____ have on the What effects do disruptive effects have external factors of the forecasting are: on the the external factors of the - Politically-related (strikes, terrorism) forecasting? - Weather-related (storms, etc)
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Term 52
Definition 52
What are some examples of time series (intrinsic) forecasting techniques?
Some examples of ____ forecasting techniques are: - Simple average - Moving average - Exponential smoothing - Time series decomposition
Term 53
Definition 53
What are some examples of causal (extrinsic) forecasting techniques?
Some examples of ____ forecasting techniques are: - Regression - Multiple regression
Term 54
Definition 54
What are some examples of qualitative (subjective or judgmental) forecasting techniques?
Some examples of ____ forecasting techniques are: - Expert opinion - Management estimation - Pyramid forecasting - Focus group - Survey - Panels
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Term 55
Definition 55
What are some issues that affect the forecast with the internal factor of new products
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Difficulty of forecasting when new products are introduced - Need for initial forecast estimate - Ability to manage capacity or flex production
Term 56
Definition 56
What are some issues that affect the forecast with the internal factor of product life cycle
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Need to account for rising, level, and then falling sales as products progress through growth, maturity, and decline stages - Managing product lines so that new products continuously replace phased-out ones
Definition 57
Term 57
Some typical issues that affect the forecast that come from the internal factor of ____ are: What are some issues that affect the forecast with the internal factor of pricing and promotion Effect of price changes on dampening/stimulating of demand Effect of promotions on stimulating and changing the time of demand
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Term 58
Definition 58
What are some issues that affect the forecast with the internal factor of competitive bids
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Dependence on awards earned - Need to estimate probability of successful bids
Term 59
Definition 59
What are some issues that affect the forecast with the internal factor of historical (intrinsic) data
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Adequacy and accuracy of time series data - Useful in estimating effects of promotions
Term 60
Definition 60
What are some issues that affect the forecast with the internal factor of management judgment
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Input on long-range business activity levels - Setting revenue growth goals that are more aggressive than historical demand
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Term 61
Definition 61
What are some issues that affect the forecast with the internal factor of intra-company demand
Some typical issues that affect the forecast that come from the internal factor of ____ are: - Recognize orders from other plants - Demand for promotional purposes and testing
Term 62
Definition 62
What are 5 categories of qualitative techniques?
The 5 categories of ____ techniques are: 1) Independent judgment of experts 2) Judgments of executives and managers 3) Market research relating to specific customer groups in specific markets 4) Sales estimates made by sales team 5) Historical analogy
Term 63
Definition 63
The qualitative techniques are supported by which 5 things?
____ techniques are supported by the following 5 things: 1) Structured data collection 2) Survey research methods 3) Statistical modeling 4) Subjective assessment 5) Intuition
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Term 64
Definition 64
What are some example techniques of independent judgement
Some example techniques of ____ are: Expert opinion
Term 65
Definition 65
What are some example techniques of executive/management judgement
Some example techniques of ____ are: - Management estimation - Pyramid forecasting
Term 66
Definition 66
Some example techniques of ____ are: What are some example techniques of market research Focus group Survey
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Term 67
Definition 67
Some example techniques of ____ are: What are some example techniques of sales force estimate Panel consensus Delphi technique Sales force composite
Term 68
Definition 68
What are some example techniques of historical analogy
Some example techniques of ____ are: Product life-cycle analysis
Term 69
Definition 69
What are some advantages of qualitative forecasting techniques?
Some advantages of ____ forecasting techniques are: - Support forecasts for products that lack initial quantifiable data - Develop forecasts when stable demand patterns are impossible - Leverage valuable insight - Provide behavioral insights into customer demand - Develop fairly quickly
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Term 70
Definition 70
What are some disadvantages of qualitative forecasting techniques?
Some disadvantages of ____ forecasting techniques are: - Developers are often biased/overconfident - Documentation for assumptions is often incomplete - Not suited to companies with thousands of SKUs - Panels/focus groups tend to be affected by peer pressure/lose independence
Definition 71
Term 71
When is the best time to use intrinsic/time series forecasting techniques?
The best time to use ____ forecasting techniques are when demand patterns can be assumed to continue into the future
Term 72
Definition 72
What are 5 time series methods of forecasting, in order of increasing complexity?
5 ____ methods of forecasting in order of ____ complexity are: 1) Simple average 2) Moving average 3) Weighted moving average 4) Exponential smoothing 5) Time series decomposition
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Term 73
Definition 73
SAF
Simple average forecast
Term 74
Definition 74
Simple average forecast
A quantitative, intrinsic forecasting technique known for its simplicity and ease of use. Forecast for a period is the average of the actual demand for the previous two periods
Term 75
Definition 75
FORMULA: SAF ForecastN+1 =
FORMULA: SAF = (DemandN-1 + demandN)/2
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Term 76
Definition 76
MAF
Moving average forecast
Term 77
Definition 77
What does MAF assume for forecasting?
___ forecasting assumes that demand in the near future will exhibit the same random fluctuation about the average shown in the past
Term 78
Definition 78
FORMULA: MAF (5 month) ForecastN
FORMULA: MAF (5 month) Sum of demand(N-1+N-2+N-3+N-4+N-5)/5
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Term 79
Definition 79
Exponential smoothing
A forecasting technique that enables forecasters to assign weights to historical and current demand data and to calculate forecasts that take into account trend and seasonality
Term 80
Definition 80
What is one of the advantages of ESF
One of the advantages of the ____ forecasting techniques is that it requires minimal data management because it only uses data for the latest period
Term 81
Definition 81
ESF
Exponential smoothing forecast
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Term 82
Definition 82
FORMULA: ESF ForecastN1 =
FORMULA: ESF = ()(DemandN0)+(1-)(MAFN0)
Term 83
Definition 83
What is ""
____ is the smoothing constant used for ESF
Term 84
Definition 84
How does a low affect the forecast?
A ____ gives less weight to the latest demand
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Term 85
Definition 85
A ____ gives more weight to the How does a high affect the forecast? latest demand (reacts to, but still lags, trend)
Term 86
Definition 86
What level of is used when demand is random with low variability
The level of used when demand is ____ with ____ variability is: - Low (keeps forecasting the average)
Term 87
Definition 87
What level of is used when demand shows trend volatility
The level of used when demand shows ____ is: - Medium (don't chase demand)
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Term 88
Definition 88
What level of is used when demand shows trend with low variability
The level of used when demand shows trend with ____ variability is: - High (risk of chasing demand is lower)
Term 89
Definition 89
When demand is trending upward or downward, is a high or low used?
When demand is trending upward or downward, a high ____ is used
Term 90
Definition 90
What are the 4 components into which time series data can be divided?
The 4 components into which ____ data can be divided are: 1) Trend 2) Seasonal 3) Cyclical 4) Random (a component without a pattern)
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Term 91
Definition 91
The 3 steps of ____ are: 1. Plot the seasonal data and calculate the trend line 2. Calculate the trend-adjusted seasonal factor 3. Calculate the trend-adjusted seasonal factor
What are the 3 steps of time series decomposition?
Term 92
Definition 92
How do you complete Step 1: Plot the seasonal data and calculate the trend line?
To perform Step 1: ____, you: 1) Calculate the trend line, using a spreadsheet application 2) Note the left intercept (B) 3) Determine M (total increase of trend line/number of periods)
Term 93
Definition 93
FORMULA Trend ratio=
FORMULA = actual period data/trend period data
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Term 94
Definition 94
FORMULA Seasonal factorQ1 =
FORMULA = (Q1Y1+Q1Y2 +...Q1YN)/N
Term 95
Definition 95
To perform Step 2: ____, you: How do you complete Step 2: Calculate the trend-adjusted seasonal factor? 1. Calculate the trend ratio for each quarter 2. Average the trend ratios for each quarter
Term 96
Definition 96
How do you complete Step 3: Calculate the trend-adjusted seasonal forecast?
To perform Step 3: ____, you: 1) For each quarter of the forecast year, multiply the trend value by the quarter's trend-adjusted seasonal factor
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Term 97
Definition 97
FORMULA Q1Forecast year =
FORMULA = (M(t)+ B)*Seasonal FactorQ1
Term 98
Definition 98
3 things that ____ forecasting techniques focus on are: 1. Analyzing time series data 2. Decomposition of demand patterns into trend, seasonal, cyclical, and random demand patterns 3. Determining mathematical relationships within the data and demand patterns, and extending them into the future
Definition 99
What are 3 things that quantitative intrinsic forecasting techniques focus on?
Term 99
What do causal forecasting techniques do?
____ forecasting techniques: - Analyze and predict based on relationships between events or occurrences - Attempt to explain/quantify the relationship in order to predict future demand
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Term 100
Definition 100
Define predictor (independent variable), in terms of causal forecasting
In terms of causal forecasting, ____ is the cause of influence on the predicted (dependent variable)
Term 101
Definition 101
Define predicted (dependent variable), in terms of causal forecasting
In terms of causal forecasting, ____ is the effect (associated result) of the predictor (independent variable)
Term 102
Definition 102
What are 3 common examples of relationships between events (predictor/independent variable v. predicted/dependent variable)
3 common examples of ____ are: 1) Cause and effect 2) Leading indicator 3) Historical analogy
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Term 103
Definition 103
What is an example of a cause and effect predictor?
An example of a ____ predictor is a marketing program (promotion and price reduction)
Term 104
Definition 104
What is an example of a leading indicator predictor?
An example of a ____ predictor is a business index (housing starts)
Term 105
Definition 105
What is an example of a historical analogy predictor?
An example of a ____ predictor are sales of similar products during the same stage of the product life cycle
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Term 106
Definition 106
Simple regression (causal analytical tool)
Models past relationships between an independent and dependent variable
Term 107
Definition 107
Simple regression (causal analytical tool)
Models past relationships between more than one independent variable and a dependent variabale
Term 108
Definition 108
What are some advantages of causal techniques?
Some advantages of ____ techniques are: - Relate internal and external market factors - Provide key insights into demand patterns/time series data - Projecting aggregate demand - Available in many software packages
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Term 109
Definition 109
What are some disadvantages of causal techniques?
Some disadvantages of ____ techniques are: - Subject and sensitive to changes in relationships - Require high levels of external data collection - Not easy to systematize - Higher data management, modeling, and storage costs - Require extensive training in statistics
Definition 110
Term 110
Are causal forecasting techniques more effective in long- or short/medium-ranges?
____ forecasting techniques are more effective in long-term ranges (as opposed to short-/medium-range)
Term 111
Definition 111
CPFR
Collaborate planning, forecasting, and replenishment
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Term 112
Definition 112
What were the 2 objectives of CPFR?
The 2 objectives of ____ were to: 1) Use one set of numbers in planning and forecasting by manufacturers and retailers 2) Adopt standards for electronic communication and sharing of data
Term 113
Definition 113
The CPFR model sets guidelines for collaboration at which 4 levels of the partnering enterprises?
The ____ model sets guidelines for collaboration at the below 4 levels of the partnering enterprises: 1) Strategy and planning 2) Demand and supply management 3) Execution 4) Analysis
Term 114
Definition 114
What are the two components of CPFR: strategy and planning
The two components of CPFR: ____ are: 1) Collaboration arrangement (planning) 2) Joint business plan
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Term 115
Definition 115
What are the two components of CPFR: demand and supply management
The two components of CPFR: ____ are: 1. Sales forecasting 2. Order planning and forecasting
Term 116
Definition 116
What are the two components of CPFR: execution
The two components of CPFR: ____ are: 1) Order generation 2) Order fulfillment
Term 117
Definition 117
What are the two components of CPFR: analysis
The two components of CPFR: ____ are: 1) Exception management 2) Analysis
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Term 118
Definition 118
Collaboration arrangement (planning)
Setting of business goals, scope of collaboration, and roles and responsibilities of the partners
Term 119
Definition 119
Joint business plan
Identifying significant events such as promotions, inventory policy changes, store opening, and product introduction
Term 120
Definition 120
Sales forecasting
Analysis of market data by the manufacturer and replenishment planning by the retailer
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Term 121
Definition 121
Order generation
Production and supply planning by the manufacturer and replenishment planning by the retailer
Term 122
Definition 122
Order fulfillment
Logistics and distribution management, both by the manufacturer and retailer
Term 123
Definition 123
Exception management
Execution monitoring by the manufacturer; store execution by the retailer
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Term 124
Definition 124
Performance assessment
Keeping of scorecards
Term 125
Definition 125
Causal forecast
A type of forecasting that uses causeand-effect associations to predict and explain relationships between the independent and dependent variables
Term 126
Definition 126
CPFR
A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers
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Term 127
Definition 127
Decomposition
A method of forecasting where time series data are separated into up to 3 components: trend, seasonal, and cyclical
Term 128
Definition 128
Exponential smoothing forecast
A type of weighted moving average forecasting technique in which past observations are geometrically discounted according to their age
Term 129
Definition 129
Qualitative forecasting technique
An approach to forecasting where historical demand data is used to project future demand
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Term 130
Definition 130
Regression analysis
A statistical technique for determining the best mathematical expression describing the functional relationship between one response and one (or more) independent variables
Term 131
Definition 131
Seasonal index
A number used to adjust data to seasonal demand
Term 132
Definition 132
Simple moving average
A moving average where the oldest data point is dropped and the newest data point is included in the calculation
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Term 133
Definition 133
Time series analysis
Analysis of any variable classified by time in which the values of the variable are functions of the time periods
Term 134
Definition 134
Weighted moving average
An averaging technique in which the data to be averaged are not uniformly weighted but are given values according to their importance
Term 135
Definition 135
What are some desired outcomes of forecast evaluation and monitoring?
Some desired outcomes of ____ are: - Correction of bias through realistic forecasts and better techniques - Improvement of forecasts to reduce forecast error - Identification of process improvements that reduce demand variation - Working with customers to anticipate demand - Leveraging latest forecast error to calculate safety stock - Inventory reduction and improvement in customer service
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Term 136
Definition 136
MAD
Mean absolute deviation
Term 137
Definition 137
FORMULA MAD =
FORMULA = (|Actual- Forecast|)/n
Term 138
Definition 138
FORMULA Period forecast error =
FORMULA = Actual demand - forecast demand =A-F
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Term 139
Definition 139
MAPE
Mean absolute percent error
Term 140
Definition 140
FORMULA MAPE =
FORMULA = ((|A-F|)/A)/n
Term 141
Definition 141
APE
Absolute percent error
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Term 142
Definition 142
FORMULA Bias =
FORMULA = (A-F)/n
Term 143
Definition 143
RSFE
Running sum of forecast error
Term 144
Definition 144
What is the purpose of a tracking signal?
The purpose of a ____ is to track variation in demand. They are used to alert the forecast evaluator to this situation by setting a limit or trip value
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Term 145
Definition 145
What are commonly used trip values?
Commonly used ____ values are 3.0 or 4.0
Term 146
Definition 146
FORMULA Tracking signal =
FORMULA = RSFE/MAD
Term 147
Definition 147
Demand filter
A quantity limit setting on actual orders for specific products
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Term 148
Definition 148
What are 4 things that a ____ does? 1) Identifies orders that would absorb too much of existing capacity 2) Detects order entry errors such as incorrect quantity What are 4 things that a demand filter 3) Identifies abnormal variability of does? demand, and enables the master planner to asses its effect on the stability of the MS 4) Lead to negotiations with customers on flagged orders
Term 149 Definition 149
What does the standard deviation measure?
The ____ measures forecast error
Term 150
Definition 150
FORMULA Standard deviation () =
FORMULA = ((A-average forecast)2)/n-1))
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Term 151
Definition 151
For standard deviation, use n when the For standard deviation, use ____ when number of periods is (=) 30 the number of periods is >= 30
Term 152
Definition 152
For standard deviation, use n-1 when the number of periods is (=) 30
For standard deviation, use ____ when the number of periods is < 30
Term 153
Definition 153
FORMULA =
FORMULA = (1.25)MAD
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Term 154
Definition 154
FORMULA MAD =
FORMULA = /1.25
Term 155
Definition 155
The value proposition of ____ is: Differentiate the customers' experience from rivals Increase lifetime customer retention Provide insight into impending customer orders
What is the value proposition of CRM?
Term 156
Definition 156
The 2 aspects of the scope of ____ are: What are the 2 aspects of the scope of CRM 1. Differentiation based on customer segments 2. Use of data and analytics to improve sales performance
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Term 157
Definition 157
The 3 most important criteria for ____ are: What are the 3 most important criteria for customer segmentation? 1. Profitability 2. Strategic importance 3. Special customer needs
Term 158
Definition 158
Some examples of ____ segmentation are: What are some examples of profitability segmentation? Volume discounts Priority attention from sales/marketing/R&D
Term 159
Definition 159
Some examples of ____ segmentation are: Considerable leverage with respect to suppliers' overall profitablity The most strategic customer may impose terms and conditions when suppliers do business with them
What are some examples of strategic importance segmentation?
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Term 160
Definition 160
Some examples of ____ segmentation are: For MTO products, the customer might require deign and engineering services Provide services to meet customers' need for better designs, support lean or green goals, provide flexible manufacturing environment
Definition 161
What are some examples of special customer needs segmentation?
Term 161
Some of the primary ____ sources on customers are: What are some of the primary data sources on customers ? Transaction records Sales representatives Service representatives Market intelligence
Term 162
Definition 162
Analytics
The use of customer data to develop insights and suggest actions to improve customer service, retention, and sales
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Term 163
Definition 163
Some examples of ____ activites are: Predict broad-scale consumer preferences Predict individual consumer preferences Replace forecats with knowledge of impending orders
What are some examples of analytics activities?
Term 164
Definition 164
What are the desired results of analyzing broad scale consumer behaviors?
Some desired results of analyzing ____ are conceiving, designing, positioning, and placing products in the marketplace
Term 165
Definition 165
What are the desired results of analyzing personal consumer behavior?
Some desired results of analyzing ____ are predicting and suggesting products for a customer to purchase (as an individual or as a member of a customer segment)
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Term 166
Definition 166
What are the desired results of analyzing business customer demand information (from various sources)
Some desired results of analyzing ____ are gaining insights into customer demand that enables an organization to replace the forecast with knowledge-based plans for specific customers
Term 167
Definition 167
The 4 main steps in the ____ cycle are: What are the 4 main steps in the Customer Order Fulfillment Cycle? 1. 2. 3. 4. Customer inquiry and order Order entry Shipping and delivery Invoicing
Term 168
Definition 168
What are the key activities associated with "Customer order and inquiry"
The key activities associated with the ____ step in the Customer Order Fulfillment cycle are: Request price and availability
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Term 169
Definition 169
The key activities associated with the ____ step in the Customer Order Fulfillment cycle are: What are the key activities associated with "Order entry"? Check price and inventory ATP Configure as necessary Promise and send order confirmation to the customer Create sales order in system Reserve or allocate inventory items to specific sales orders
Definition 170
Term 170
The key activities associated with the ____ step in the Customer Order Fulfillment cycle are: What are the key activities associated with "Shipping and delivery"? Consolidate and route shipments Prepare pick lists Prepare bills of lading and packing slips Send advance ship notices
Term 171
Definition 171
What are the key activities associated with "Invoicing"?
The key activities associated with the ____ step in the Customer Order Fulfillment cycle are: Prepare invoices Transmit electronically or by other means
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Term 172
Definition 172
Customer order fulfillment
A set of actions that results in the production and/or shipping of goods to customers
Term 173
Definition 173
ATP
Available-to-promise
Term 174
Definition 174
CTP
Capable-to-promise
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Term 175
Definition 175
Order promising
Letting customrs know if their orders can be fulfilled in the quantities ordered by a certain delivery date
Term 176
Definition 176
The 2 types of ____ are: What are the 2 types of order promising? 1. ATP (available-to-promise) 2. CTP (capable-to-promise)
Term 177
Definition 177
In ATP, what is the source of data for customer order promises?
In ____, the source of data for customer order promises is the master production schedule (MPS)
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Term 178
Definition 178
____ makes promises from the following 2 places: ATP makes promises from which 2 places? 1. On-hand inventory balances 2. Future supply (shown as scheduled receipts in the MPS)
Term 179
Definition 179
ATP relies on master scheduling software to ____, but defers to the planner's judgement for ____
ATP relies on ____ to calculate whether it is possible to promise an order from inventory or production, but defer's to the ____ for the final decision
Term 180
Definition 180
____ works for the below 2 manufacturing environments: ATP works for which 2 manufacturing environments? 1. MTS 2. MTO (promises made only from customer orders)
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Term 181
Definition 181
In the case of MTO products, ATP only In the case of ____ products, ATO only promises from what? promises from customer orders
Term 182
Definition 182
When is CTP, an alternative form of ATP, used?
____ is used when the MPS for a product is not able to accommodate a customer order from current or future inventory
Term 183
Definition 183
____ attempts to: 1. Set up a new MPS for the same product if capacity and material are available 2. "Borrow" capacity and material allocated to the MPS for another product if the capacity and material is not available
What are the 2 things that CTP attepms to do?
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Term 184
Definition 184
The 4 characteristics of ____ are: 1. Not in the forecast 2. From a non-regular customer 3. Random, non-recurring, highlyvariable 4. Not received through normal channels
What are the 4 characteristics of abnormal demand?
Term 185
Definition 185
Upon receiving ____, the first 2 things that customer service should do are: Upon receiving abnormal demand, what are the first 2 things that customer service should do? 1. Check ATP data to see if the order can be accommodated 2. Run through a decision process to determine whether to promise and confirm the order
Term 186
Definition 186
The 3 decision makers for ____ are: Who are the 3 decision makers for abnormal demand? 1. Sales 2. Marketing 3. Operations
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Term 187
Definition 187
In the case of abnormal demand, what is operation's input into the decision?
In the case of abnormal demand, ____ inputs on changeover costs and the impact on other customers' orders
Term 188
Definition 188
The 4 key questions to ask when considering ____ are: What are 4 key questions to ask when considering abnormal demand? 1. Financially attractive? 2. Recurring demand? 3. Flexibility of quantity and due date? 4. Impact on other customers' orders?
Term 189
Definition 189
Are abnormal demand orders usually or usually not accepted? Why?
____ orders are usually not accepted because of capacity and material problems
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Term 190
Definition 190
The internal communications related to ____ are: What are the internal communications related to S&OP? Agree on the production plan
Term 191
Definition 191
What are the communications with the customer related to S&OP?
The communications with the customer related to ____ are: Medium-term demand
Term 192
Definition 192
What are the internal communications related to Master Scheduling?
The internal communications related to ____ are: During order processing Continually, on demand flexibility
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Term 193
Definition 193
What are the communications with the customer related to Master Scheduling?
The communications with the customer related to ____ are: During order promising Continually on demand flexibility
Term 194
Definition 194
What are the communications with the customer related to Demand Management?
The communications with the customer related to ____ are: Performance measures
Term 195
Definition 195
The internal communications related to ____ are: What are the internal communications related to Order Management? Forecasts and electronic point-ofsale sata from customers for VMI Kanban (lean) replenishment signals from customers
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Term 196
Definition 196
The communications with the customer related to ____ are: What are the communications with the customer related to Order Management? Engineering and due-date changes Price and availability of MTS products
Term 197
Definition 197
The 2 approaches to measuring ____ are: What are the 2 approaches to measuring performance? 1. Functional approach (traditional silo approach) 2. Cross-functional approach
Term 198
Definition 198
What is another name for the Functional approach to performance measurement?
Another name for the ____ approach to performance measurement is the Traditional Silo approach
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Term 199
Definition 199
Some characteristics of the ____ approach to performance measurement are: What are some characteristics of the Functional approach to performance measurement? Functions have their own set of metrics Conflicts exist among functional objectives Metrics are in silos
Term 200
Definition 200
Some characteristics of the ____ approach to performance measurement are: What are some characteristics of the Cross-Functional approach to performance measurement? Meterics to not conflict crossfunctionally Reflects an integration of supply chain processes Includes aggregate and detailed order delivery metrics
Term 201
Definition 201
The 3 components of a ____ are: What are the 3 components of a metric? 1. Criterion 2. Standard 3. Measure
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Term 202
Definition 202
Metric
A performance measurement system consisting of a criterion, a standard, and a measure
Term 203
Definition 203
SCOR
Supply Chain Operations Reference
Term 204
Definition 204
The 5 performance attritibute categories of ____ metrics are: What are the 5 performance attribute categories of order delivery metrics? 1. 2. 3. 4. 5. Agility Reliability Cost Responsiveness Asset Management "ARCRA"
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Term 205
Definition 205
The ____ performance attribute On what does the Reliability category focuses on quality of product performance attribute category focus? and service
Term 206
Definition 206
The ____ performance attribute category focuses on the average cycle On what does the Responsiveness time that a manufacturer requires to performance attribute category focus? respond to and deliver customer orders
Term 207
Definition 207
What is another name for the performance attribute category of Reliability
Another name for the performance attribute category of ____ is the Perfect Order category
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Term 208
Definition 208
FORMULA Perfect order fulfillment =
FORMULA = (Number of perfect orders)/(Total number of orders)
Term 209
Definition 209
What is the Level 1 Metric for Reliability?
The Level 1 Metric for ____ is: Perfect order fulfillment
Term 210
Definition 210
What is the Level 1 Metric for Responsiveness?
The Level 1 Metric for ____ is: Order fulfillment cycle time
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Term 211
Definition 211
The Level 1 Metrics for ____ are: What are the Level 1 Metrics for Agility? Upside supply chain flexibility Upside supply chain adaptability Downside supply chain adaptability
Term 212
Definition 212
The Level 1 Metrics for ____ are: What are the Level 1 Metrics for Cost? Supply chain management cost Cost of goods sold (COGS)
Term 213
Definition 213
The Level 1 Metrics for ____ are: What are the Level 1 Metrics for Asset Management? Cash-to-cash cycle time Return on supply chain fixed assets
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Term 214
Definition 214
The Level 2 Metrics for ____ are: What are the Level 2 Metrics for Reliability: Perfect Order Fulfillment? Delivered on time Delivered in full Correct condition Correct place
Term 215
Definition 215
The Level 2 Metrics for ____ are: What are the Level 2 Metrics for Responsiveness: Order Fulfillment Cycle Time? Order entry time Dwell time for future dated orders Make, distribute, transport time
Term 216
Definition 216
The Level 2 Metrics for ____ are: What are the Level 2 Metrics for Asset Management: Cash-to-Cash Cycle Time? Days supply of inventory Days sales outstanding Days payable outstanding
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Term 217
Definition 217
What is another name for Delivered in Full?
Another name for ____ is Line Fill Rate
Term 218
Definition 218
Upon what is the Order Fulfillment Life Cycle based?
The ____ cycle is based on the time from acceptance of a sales order to customer receipt of the product
Term 219
Definition 219
FORMULA Order fulfillment life cycle =
FORMULA = (Sum of actual cycle times for all orders delivered)/(Total number of orders delivered)
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Term 220
Definition 220
What is the main purpose for Level 2 Metrics in performance measurement?
The main purpose of ____ in performance measurement is to help diagnose the root causes of shortcomings in Level 1 Metrics
Term 221
Definition 221
What does the Agility performance attribute category evaluate?
The ____ performance attribute category evaluates the ability of a supply chain to deal reliably with demand variation in the near and long terms
Term 222
Definition 222
What are the 2 components of the Cost performance attribute category?
The 2 components of the ____ performance attribute category are: 1. Supply chain management cost 2. Cost of goods sold
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Term 223
Definition 223
What are the 2 components of the Asset Management performance attribute category?
The 2 components of the ____ performance attribute category are: 1. Cash-to-cash cycle time 2. Return on supply chain fixed assets
Term 224
Definition 224
How is Upside Supply Chain Flexibility Measured?
____ is measured by the number of days required to meet an unplanned and sustinable increase of 20% in delivery quantities to meet market demand
Term 225
Definition 225
Upside Supply Chain Flexiblity
The speed with which a 20% increase in required production occurs
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Term 226
Definition 226
Upside Supply Chain Adaptability
The maximum sustainable percentage increase in quantity delivered that can be acheived in 30 days
Term 227
Definition 227
Downside Supply Chain Adaptability
The ability to handle a reduction in orders
Term 228
Definition 228
How is Downside Supply Chain Adapability measured?
____ is measured as a percentage reduction in quantities ordered that are sustainable 30 days prior to delivery with no inventory or cost penalties
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Term 229
Definition 229
Supply Chain Management Cost
The fixed and operational costs of the plan, source, deliver, and return processes
Term 230
Definition 230
How is Supply Chain Management Cost measured?
____ is measured per $1000 in revenue
Term 231
Definition 231
What does Cash-to-Cash Cycle Time measure?
____ measures the efficiency of the use of assets on a cross-functional basis by planning, procurement, manufacturing, and distribution
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Term 232
Definition 232
Cash-to-Cash Cycle Time
The number of days of working capital tied up in managing the supply chain
Term 233
Definition 233
FORMULA Cash-to-Cash Cycle Time =
FORMULA = Number of days of inventory + Days of accounts receivable - Days of accounts payable
Term 234
Definition 234
Return on Supply Chain Fixed Assets
The effectiveness of the manufacturer in generating revenues from its capital investment in fixed assets
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Term 235
Definition 235
FORMULA Return on Supply Chain Fixed Assets =
FORMULA = (Supply chain revenue - COGS - Supply

chain management costs)/ Suppy chain fixed assets
Term 236
Definition 236
Some ways by which ____ can be developed are: What are some ways by which Standards can be developed? Using internal best estimates Collaboration with customers Benchmark information
Term 237
Definition 237
Supply Chain Council
A membership organization of several hundred companies that report performance data for metrics at level 1 to 4 in five performance attribute categories
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Term 238
Definition 238
Safety Stock
(aka buffer inventory) addresses demand uncertainty by providing an incremental quantity of finished goods or components
Term 239
Definition 239
What is the purpose of safety stock?
The purpose of ____ is to provide additional inventory to cover adverse consequences of stockouts caused by demand and supply uncertainty
Term 240
Definition 240
What are 2 adverse consequences of stockouts caused by demand and supply uncertainty?
The 2 adverse consequences of ____ caused by demand and supply uncertainty are: 1. Customer dissatisfaction 2. Loss of sales revenue
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Term 241
Definition 241
The 2 ways to set ____ levels are: What are teh 2 ways to set customer service levels? 1. Mathematical 2. Judgmental
Term 242
Definition 242
Mathematical (approach to customer service)
The ____ approach to customer service is based on the number of stockouts tolerable during the forecast horizon
Term 243
Definition 243
FORMULA Stockout rate =
FORMULA = n (number of stockouts) /

orders) t (total number of
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Term 244
Definition 244
FORMULA Service level =
=1-
(n (num ber of stockouts)
FORMULA / t (total number of orders))
Term 245
Definition 245
The 3 components to a ____ approach to customer service are: What are the 3 components of a Judgmental approach to customer service? 1. Defining the customer service level that equals an acceptable fill rate 2. Bases the acceptable fill rate on a best-in-class benchmark 3. Can also be a rate negotiated with the customer
Term 246
Definition 246
The 3 components of calculating ____ are: What are the 3 components to calculating safety stock? 1. Statistical basis for the calculation 2. Role of standard deviation 3. Role of the safety factor
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Term 247
Definition 247
1 Standard Deviation () =
____ standard deviation () = 68.26
Term 248
Definition 248
Term 249
Definition 249
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Term 250
Definition 250
The ____ calculation is based upon the proven statistical probability that actual period demand values within the forecast horizon will: Statistical Basis (for the safety stock calculation) Deviate from the demand forecast Fall symmetrically around the period average forecast in what is called a normal distribution or a bell-shaped curve
Term 251
Definition 251
Normal distribution
Bell-shaped curve
Term 252
Definition 252
FORMULA: Standard deviation () =
FORMULA: = ((actual-average forecast)2)/(n-1))
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Term 253
Definition 253
FORMULA: Error =
FORMULA: = Actual - average forecast
Term 254
Definition 254
Z value
safety factor
Term 255
Definition 255
FORMULA: Safety Stock =
FORMULA: (Standard Deviation) x Z-value (Safety Factor)
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Term 256
Definition 256
LTI
Lead time interval
Term 257
Definition 257
What are some sources of uncertainty that affect replenishment of the inventory used to fulfill customer orders?
Some sources of uncertainty that affect ____ are: Transportation delays Miscommunications Production shortages Quality issues
Term 258
Definition 258
FI
Forecast interval
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Term 259
Definition 259
If the replenishment lead time (LTI) is less than the forecast interval (FI), the will (increase/decrease)
If the replenishment lead time (LTI) is (less/greater) than the forecast interval (FI), the will decrease
Term 260
Definition 260
If the replenishment lead time (LTI) is greater than the forecast interval (FI), the will (increase/decrease)
If the replenishment lead time (LTI) is (less/greater) than the forecast interval (FI), the will increase
Term 261
Definition 261
FORMULA: adjusted for LTI =
FORMULA: = ( for FI) x (LTI/FI)
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Term 262
Definition 262
FORMULA: SS adjusted for LTI =
FORMULA: = SF x ( adjusted for LTI)
Term 263
Definition 263
Safety factor
The statistical value that corresponds to an estimated service level. The higher the service level percent, the greater the safety factor (Z value)
Term 264
Definition 264
A Z value of 0 statistically results in what service level percent?
A Z value of ____ results in a service level percent of 50 (IE: 50% stock out probability)
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Term 265
Definition 265
FORMULA: Stockout probability percent =
FORMULA: = 1 - service level percent
Term 266
Definition 266
The general concept of the ____ is that if it takes longer to replenish stock than the time you take to plan What is the general concept of the LTI- inventory, you have more uncertainty adjusted SS? and need to make up for that with SS. (IE: You cannot react quickly enough with replenishment and need to buffer to hold the same SL% )
Term 267
Definition 267
Some examples of ____ policy are: Customer focus Service levels Performance management Systems support Customer interface Culture Top management leadership Integration with strategic goals
What are some examples of customer service policies?
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Term 268
Definition 268
____ is defining customer needs, What is "customer focus", in the conducting customer satisfaction context of a customer service policy? surveys, and facilitating feedback from customers
Term 269
Definition 269
What are "service levels", in the context of a customer service policy?
____ is determining appropriate levels for backlog, inventory including safety stock, and delivery speed and reliability
Term 270
Definition 270
____ is deciding how customer service will be measured and what What is "performance measurement", performance standards to use; in the context of a customer service seeking customer input on policy? performance expectations and targets; monitoring delivery and product quality performance
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Term 271
Definition 271
What is "systems support", in the context of a customer service policy?
____ is ensuring that product information such as inventory, backlog, and customer promise information is accurate and up-to-date
Term 272
Definition 272
What is "customer interface", in the context of a customer service policy?
____ is training and empowering employees on delivering customer satisfaction, maintaining integrity in customer relationships, and ensuring that all customer-facing employees provide a consistent level of service in sales, product and technical support, customer inquiry, order entry, and more
Term 273
Definition 273
What is "culture", in the context of a customer service policy?
____ is reinforcing the focus on customer satisfaction through frequent training, incentives, and continuous improvement
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Term 274
Definition 274
____ is ensuring that senior executives What is "top management leadership", are able to express a stategic vision in the context of a customer service and clear organizational expectations policy? for customer service
Term 275
Definition 275
What is "integration with strategic goals", in the context of a customer service policy?
____ is ensuring consistency with supply chain management strategy and business objectives such as profitability, return on investment, brand strengthening, and market share
Term 276
Definition 276
The 4 steps of the ____ process are: 1. Evaluate generic performance objectives 2. Define performance metrics 3. Determine lower level performance measures 4. Develop standards or targets
What are the 4 steps of the Performance Management Process?
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Term 277
Definition 277
Describe the "evaluate generic performance objectives" step of the performance measurement process
The ____ step of the performance measurement process assumes a company's operations strategy is aligned with its overall business strategy and goals. The objective is to determine which generic performance objectives are most important (EX: speed, flexibility, cost)
Term 278
Definition 278
Describe the "define performance metrics" step of the performance measurement process
The ____ step of the performance measurement process is the defining of metrics appropriate for each generic performance objective, that can have its own performance target and be benchmarked against a standard (EX: perfect order fulfillment as a metric for quality and dependability)
Term 279
Definition 279
Describe the "determine lower level performance measures" step of the performance measurement process
The ____ step of the performance measurement process (also called criteria) provide a lot more granularity and diagnostic information to the measurement process
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Term 280
Definition 280
Describe the "develop standards or targets" step of the performance measurement process
The ____ step of the performance measurement process provides more meaning to measurements (by allowing them to be compared)
Term 281
Definition 281
Lower-level performance measures
Criteria
Term 282
Definition 282
What is the value of lower-level performance measures (aka criteria)?
The value of ____ is in suggesting remedial action
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Term 283
Definition 283
Allocation
The classification of quantities of items that have been assigned to specific orders but have not yet been released from the stockroom to production
Term 284
Definition 284
Available-to-promise
The uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order purchasing
Term 285
Definition 285
Bias
A consistent deviation from the mean in one direction--either high or low; a normal property of a good forecast is that it does not exhibit ____
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Term 286
Definition 286
Capable-to-promise
The process of committing orders against available capacity as well as inventory. Used to determine when a new or unscheduled customer order can be delievered
Term 287
Definition 287
Demand filter
A standard that is set to monitor sales data for individual items in forecasting models. It is usually set to be tripped when the demand for a period differs from the forecast by more than some number of mean absolute deviations
Term 288
Definition 288
Metric
A system for collecting, measuring, and comparing a measure to a standard for a specific criterion for an operation, item, good, service, business, and so on
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Term 289
Definition 289
Normal distribution
A particular statistical distribution where most of the observations fall fairly close to one mean, and a deviation from the mean is as likely to be plus as it is to be minus
Term 290
Definition 290
Running sum of forecast errors
The arithmetic sum of the differences between actual and forecasted demand for the periods being evaluated
Term 291
Definition 291
Safety factor
The numerical value used in the service function, based on the standard deviation or mean absolute deviation of the forecast, to provide a given level of customer service
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Term 292
Definition 292
Service level
A measure, usually expressed as a percentage, of satisfying demand through inventory or by the current production schedule in time to satisfy the customers' requested delivery dates and quantities
Term 293
Definition 293
Tracking signal
The ratio of the cumulative algebraic sum of the deviations between the forecasts and the actual values to the MAD
Term 294
Definition 294
Standard deviation
A measurement of dispersion of data or a variable
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Term 295
Definition 295
The 4 factors that influence ____ are: 1. Distribution channel design considerations 2. Network configuration alternatives 3. Selection of transportation modes 4. Inventory location decisions
What are the 4 factors that influence distribution network planning?
Term 296
Definition 296
Manufacturer's distribution channel
The route along which products flow to end users
Term 297
Definition 297
What are the 2 types of distribution channels
The 2 types of ____ are functional and institutional channels
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Term 298
Definition 298
Some examples of ____ channels are: What are some examples of functional channels? Marketing and sales Storage/break-bulk/cross docking (warehouse) Consolidation Transportation
Term 299
Definition 299
Functional channel
A series of business functions (all of which need to be completed in some capacity)
Term 300
Definition 300
Institutional channels
The components that connect the channels of distribution
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Term 301
Definition 301
Intermediary organizations
Channels of distributions (or channel membersS0
Term 302
Definition 302
Some examples of ____ channels are: What are some examples of institutional channels? Manufacturers Brokers Distributors Dealers Retailers
Term 303
Definition 303
What is the relationship between institutional and functional channels?
Institutions performs functions
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Term 304
Definition 304
The 2 things by which the strategic ____ design is chosen are: What are the 2 things by which the strategic distribution design is chosen? 1. Is it feasible to perform distribution channel functions internally? --OR-2. Would it be advisable to utilize other institutional channels to perform some or all functions
Term 305
Definition 305
What are the 3 basic options that manufacturers have to consider in terms of channels of distribution?
The 3 basic options that manufacturers have to consider in terms of ____ are: 1. Direct/internal channel 2. Exclusive and selective channel 3. Complex channel
Term 306
Definition 306
Direct/internal channel
The manufacturer performs all marketing and distribution sales functions internally (IE: Sell directly to consumers)
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Term 307
Definition 307
An example of ____ channels is: What is an example of a direct/internal channel? A jet engine company selling to the airplane manufacturer
Term 308
Definition 308
Exclusive and selective channel
The manufacturer relies on a limited number of distributors and retailers for customer sales and support
Term 309
Definition 309
Some examples of ____ channels are: What are some examples of exclusive and selective channels? Automobile dealers Branded high-end apparel stores
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Term 310
Definition 310
Complex channel
The manufacturer relies on its own internal distribution functions in combination with external institutional channels
Term 311
Definition 311
Some examples of ____ channels are: What are some examples of complex external channels? Regional, national, and global distributors and retailers Mass merchandisers
Term 312
Definition 312
What is an example of a complex internal channels?
An example of ____ channels is: Regional warehousing
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Term 313
Definition 313
3 factors that affect the ____ decision are: What are 3 factors that affect the channel structure design decision? 1. Customer service criteria 2. Distribution intensity 3. Channel dependence
Term 314
Definition 314
What are the 4 criteria that channel structure design must address relating to basic customer or market requirements (IE: Customer service criteria)?
The 4 criteria that channel structure design must address relating to ____ requirements are: 1. 2. 3. 4. Product variety Lead time Lot size Location (spatial convenience)
Term 315
Definition 315
Lead time (customer service criterion)
The time between order placement and delivery of products
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Term 316
Definition 316
What is the relationship between lead The lower the ____ the lower the safety time and safety stock? stock requirement
Term 317
Definition 317
What is the relationship between lead time and forecasts?
The lower the ____ the lower the need to rely on forecasts for demand periods further into the future
Term 318
Definition 318
End users of highly-specialized MTO and ETO items purchase in what size lots?
End users of ___ purchase in smal lot sizes
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Term 319
Definition 319
End users of MTS items purchase in what size lots?
End users of ___ purchase in smal lot sizes but in high variety from retailers
Term 320
Definition 320
For purchases by distributors or retailers, smaller lot sizes lead to what?
For purchases by ____, smaller lot sizes lead to better customer value and service (through lower payables cash flow, storage requirements, and risk from damage or obsolescence)
Term 321
Definition 321
How do distributors and retailers add value?
____ add value by breaking large bulk loads into smaller shipments to retailers and retail customers
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Term 322
Definition 322
Location (spatial) convenience
The time and place utility of access to products. The closer and more convenient the sales point to the customer, the lower the customer's acquisition cost
Term 323
Definition 323
A complex distribution channel has a A ____ distribution channel has a high ____ level of intensity and a ____ level level of intensity and a low level of of manufacturer control manufacturer control
Term 324
Definition 324
A selective distribution channel has a ____ level of intensity and a ____ level of manufacturer control
A ____ distribution channel has a medium level of intensity and a medium/high level of manufacturer control
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Term 325
Definition 325
An exclusive distribution channel has a ____ level of intensity and a ____ level of manufacturer control
A ____ distribution channel has a low/medium level of intensity and a high/medium level of manufacturer control
Term 326
Definition 326
An internal/direct distribution channel A ____ distribution channel has a low has a ____ level of intensity and a ____ level of intensity and a high level of level of manufacturer control manufacturer control
Term 327
Definition 327
Complex distribution channel
Manufacturer seeks to maximize distribution points to attain proximity and exposure to customers
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Term 328
Definition 328
Selective distribution chanel
Manufacturer limits sales to a select group of intermediaries that provide high levels of marketing, sales support, and customer service. Retailers and dealers are attracted by prospects of exclusive product distribution
Term 329
Definition 329
Exclusive distribution channel
More selective intermediaries, often with restrictions on their ability to represent competing product lines
Term 330
Definition 330
Internal/direct distribution channel
Manufacturers fulfill orders for unique MTO or ETO products, partly from components on hand and components yet to be specified in engineering drawings or ordered from suppliers
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Term 331
Definition 331
Channel dependence
The degree to which channel members need to collaborate
Term 332
Definition 332
A single transaction channel dependence exhibits what level of dependence
A ____ channel dependence exhibits temporary channel cooperation (onetime transactions)
Term 333
Definition 333
A conventional channel dependence exhibits what level of dependence
A ____ channel dependence exhibits opportunistic cooperation
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Term 334
Definition 334
A networked supply channel dependence exhibits what level of dependence
A ____ channel dependence exhibits collective commitment to efficiency of the channel
Term 335
Definition 335
Single transaction channel dependence
Channels of distribution are established to facilitate single transactions, as in many purchases of capital equipment or facilities. Channels are short-lived; they disappear upon completion of a transaction
Term 336
Definition 336
Conventional channel dependence
There is a lasting relationship among channel members, but cooperation is opportunistic and not stable. Parties are individually efficient but not fully commited to or dependent on an efficient supply chain
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Term 337
Definition 337
Networked supply channel dependence
Channel members acknowledge and value interdependence as a way of reducing overall supply chain costs and meeting customer needs
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What are the 3 keys to successful forecasting, in order of importance?

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For ____ the forecast time horizon should be 3 years or longer

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The duration of the time period used in the forecast

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What are the 3 durations of forecast intervals?

The 3 durations of ____ are: 1) Weekly 2) Monthly 3) Quarterly

What are the advantages of weekly intervals?

What are the disadvantages of weekly intervals?

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What are the advantages of monthly intervals?

What are the advantages of quarterly intervals?

What are the disadvantages of quarterly intervals for forecasting?

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FORMULA: Coefficient of variation (CV)

FORMULA: =(standard deviation of period demand)/(average period demand)

What are 4 examples of forecasting models?

4 examples of ____ models are: 1) Judgmental 2) Quantitative 3) Statistical 4) Mathematical

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On the forecast model grid, what factor is on the Y-axis?

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The forecasting grid relates forecasting to which 3 things?

A CV of (less than)/(greater than) 1 is considered ____/____

A CV of (____ than)/(____ than) 1 is considered (low-variance)/(highvariance)

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Why is it particularly important to document assumptions made in the forecasting process?

What are the 2 main categories of forecasting techniques?

The 2 main categories of ____ techniques are: 1) Quantitative 2) Qualitative

What are the 2 types of quantitative forecasts?

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What are the 2 types of qualitative techniques?

The 2 types of ____ techniques are: 1) Subjective 2) Judgemental

What are some external factors of forecasting?

What are 7 internal factors of forecasting?

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External factors are things that you (can)/(can't) control

____ factors are things that you can't control

Internal factors are things that you (can)/(can't) control

____ factors are things that you can control

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What are some examples of time series (intrinsic) forecasting techniques?

What are some examples of causal (extrinsic) forecasting techniques?

Some examples of ____ forecasting techniques are: - Regression - Multiple regression

What are some examples of qualitative (subjective or judgmental) forecasting techniques?

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What are 5 categories of qualitative techniques?

The qualitative techniques are supported by which 5 things?

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What are some example techniques of independent judgement

Some example techniques of ____ are: Expert opinion

What are some example techniques of executive/management judgement

Some example techniques of ____ are: - Management estimation - Pyramid forecasting

A CV of (less than)/(greater than) 1 is considered /

A CV of ( than)/( than) 1 is considered (low-variance)/(highvariance)