FREE Certified in Production and Inventory Management (Basics of Supply Chain Management) Questions and Answers
Which of the following files is necessary for material requirements planning?
Material requirements planning (MRP) requires the bill of materials (BOM) file to plan requirements.
Which of the following calculations is a major component that is used with extrinsic forecasting?
Extrinsic forecasting uses external data and factors to predict future demand, such as economic indicators, market trends, and competitor analysis. Therefore, there is no specific calculation that is a major component of extrinsic forecasting, as it depends on the specific data and factors being analyzed.
A product is expected to sell 200 units per month. During the previous six months, the actual demand was 195, 210, 205, 190, 220, and 225. Which of the following values best represents the data's mean absolute deviation?
To calculate the mean absolute deviation, we need to first find the absolute deviation of each demand value from the forecast, then find the average of those deviations.
The absolute deviations from the forecast are:
|195-200| = 5
|210-200| = 10
|205-200| = 5
|190-200| = 10
|220-200| = 20
|225-200| = 25
The sum of these absolute deviations is 5 + 10 + 5 + 10 + 20 + 25 = 75.
The mean absolute deviation is calculated by dividing this sum by the number of data points, which is 6.
Mean absolute deviation = 75/6 = 12.5.
Therefore, the answer is 12.5.
Which of the following functional domains makes decisions regarding the supply of products and the treatment of customers?
Marketing is the functional area that decides the product to be supplied and the customers to be served.
Which of the following claims about the idea of independent demand is accurate?
Independent demand refers to the demand for finished products or end items that are directly demanded by customers. These demands are not influenced by the demand for other items, and thus, they need to be forecasted.
What demand management activity involves handling a client request and preparing materials for manufacturing or shipping?
Order processing includes processing a customer request and making material available for production or shipping.
An advantageous competitive trait is one that:
An order winner is a competitive characteristic that a company must exhibit to win sales and gain a competitive advantage in the market. It could be a feature or attribute of a product or service that makes it more desirable to customers than the offerings of competitors.