Supply Chain Management & Logistics Flashcards

What is a Kanban system in lean manufacturing and supply chain?

Answer: A visual scheduling system that signals replenishment based on actual consumption

Kanban uses visual signals (cards, bins, or electronic triggers) to authorize production or replenishment only when downstream consumption occurs, supporting pull-based flow.

What is the primary objective of aggregate production planning (APP)?

Answer: To determine optimal workforce, inventory, and production rate levels over a medium-term horizon to meet forecasted demand

APP balances demand with supply resources over a 2–18 month horizon by adjusting workforce size, overtime, subcontracting, and inventory to minimize total costs.

Which metric measures the percentage of orders delivered on time and in full?

Answer: OTIF (On-Time In-Full)

OTIF tracks the percentage of customer orders delivered at the right time, in the right quantity, meeting both timing and completeness requirements simultaneously.

What is the purpose of a safety stock in inventory management?

Answer: To buffer against demand variability and supply uncertainty and prevent stockouts

Safety stock is extra inventory held above expected demand to protect against demand spikes or supply delays that would otherwise cause stockouts.

In supply chain risk management, what is a 'single source' risk?

Answer: Relying on a single supplier for a critical component, creating vulnerability to disruption

Single sourcing concentrates supply risk in one supplier; if that supplier fails due to disaster, bankruptcy, or quality issues, the entire supply chain is disrupted.

What does 'cycle time' mean in the context of supply chain and production?

Answer: The total elapsed time to complete one unit or one process cycle from start to finish

Cycle time is the total elapsed time required to complete one full repetition of a process, from the first step to the last step for a single unit.