Exam 2 Review

Which of the following is NOT a pressure for companies to carry small inventories?

• Cost of capital

• Storage and handling costs

• Customer service

• Shrinkage

Match the following types of inventory with how it is created:

• Varies directly with lot size

• Pipeline inventory

• Surplus inventory held to protect against uncertainties

• Anticipation inventory

• Used to absorb uneven rates of demand or supply

• Cycle inventory

• When an order for an item is issued but not yet received

• Safety stock inventory

Which cost is missing from this picture, which is the sum of holding cost + ordering/setup cost?

Which review system tracks the remaining inventory of a SKU each time a withdrawal is made to determine whether it is time to reorder?

• Continuous review system

• Periodic review system

• Inventory review system

• Order review system

Reorder the following sequences through consecutive, increasing levels of detail (1 being big-picture, 3 being most detailed):

• Resource plan

• Sales and operations plan

• Workforce scheduling

Match the following types of S&OP strategies with their definitions:

• Involves hiring and laying off employees to match the demand forecast

• Chase strategy

• Keeps the workforce constant, but varies its utilization via overtime & undertime

• Mixed strategy

• Considers the full range of supply options

• Level strategy

Which Gantt chart (pictured here) can be used to schedule the capacity of facilities?

• The workstation chart

• The job progress chart

• The load balance chart

• The activity progress chart

Fill in the blanks (separate words with a comma):

The job arriving at the workstation first has the highest priority under a first-____, first-______ rule.

Which inventory (pictured) represents the difference between customer orders already booked and the quantity that operations is planning to produce?

• Finished goods inventory

• Current shipping inventory

• Available-to-promise

• Forecasted customer orders

Match the following lot sizing rules with their definitions:

• Allows a different order qty for each order issued but issues the order for predetermined intervals

• Periodic order quantity (POQ)

• Maintains the same order qty each time an order is issued

• Fixed order quantity (FOQ)

• The lot size ordered covers the gross requirements of a single week

• Lot-for-lot (L4L)