Supply Chain Management Flashcards
6 cards from real Manufacturing and Production practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Supply Chain Management flashcards as text
What does EOQ stand for in inventory management?
Answer: Economic Order Quantity
Economic Order Quantity is the optimal order size that minimizes total inventory holding and ordering costs.
Safety stock in supply chain management is maintained to:
Answer: Buffer against demand variability and supply uncertainty
Safety stock is extra inventory kept to prevent stockouts caused by unpredictable demand spikes or supply delays.
The 'bullwhip effect' in supply chains refers to:
Answer: Amplification of demand variability as orders move upstream through the supply chain
The bullwhip effect describes how small fluctuations in end-customer demand become progressively larger variability upstream.
Just-in-Time (JIT) inventory management aims to:
Answer: Receive materials only as they are needed in the production process
JIT reduces inventory waste by synchronizing material deliveries with production needs, minimizing carrying costs.
What is a vendor-managed inventory (VMI) arrangement?
Answer: The supplier monitors and replenishes the customer's inventory automatically
In VMI, the supplier takes responsibility for maintaining agreed inventory levels at the customer's location.
ABC inventory classification categorizes items based on:
Answer: Annual consumption value to prioritize control efforts
ABC analysis divides inventory into A (high value), B (moderate value), and C (low value) items to focus management effort.