OPS – Flashcards
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Single-Period Inventory Model
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a system for ordering items that have little or no value at the end of a sales period
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Setup Cost
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the cost to prepare a machine or process for production
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Appropriate level of safety stock
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choosing the level of safety stock that assures a given level
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How to decrease inventory record accuracy
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increasing stockroom accessibility
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Cycle Counting
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a process by which inventory records are verified
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The difference between the basic EOQ model and the production order quantity model is that
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the production order quantity model does not require the assumption of instantaneous delivery
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In the single-period inventory model, the average cost is
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cost per unit - salvage value per unit
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A Probabilistic Model
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a statistical model when product demand or any other variable is not known but can be specified by means of a probability distribution
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Safety Stock
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extra units that are held in inventory to reduce stockouts
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Inventory control models assume that demand for an item
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either independent of or dependent on the demand for other items
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With a probabilistic model, increasing the service level
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will increase the cost of the inventory policy
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Raw Material Inventory
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inventory that has been purchased but not processed
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The Objective of Inventory Management
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strike a balance between inventory investment and customer service
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Sales Force Composite
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a forecasting model based upon salespersons' estimates of expected sales
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First Step in a Forecasting Model
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determine the use of the forecast
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Multiple Regression
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a forecasting method considers several variables that are related to the variable being predicted
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Tracking Signal
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a measurement of how well a forecast is predicting actual values
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How to determine the Smoothing Constant
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using MAD
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Coefficient of Correlation
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a measure of the strength of the relationship between two variables
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The Goal of CPFR
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create significantly more accurate information that can power the supply chain
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CPRF
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collaborative, planning, forecasting and replenishment
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Economic Forecast
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a forecast that addresses the business cycle by predicting planning indicators
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Seasonality
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a data pattern that repeats itself after a period of days, weeks, months, or quarters
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Demand Forecast
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a forecast that projects a company's sales
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Which forecast error measure is probably the easiest to interpret?
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MAPE
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What is the final step in a forecasting system?
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validate and implement the results
