D470 Transportation, Logistics, and Distribution - Set 1 - Part 3

Correct Answer: Quality function deployment

Quality function deployment (QFD) focuses on aligning customer requirements with operational processes to improve supplier performance.

Correct Answer: Malcolm Baldridge National Quality Award criteria

The Malcolm Baldridge criteria are used to measure and recognize operational excellence and performance in U.S. companies.

Correct Answer: Moving average

The moving average method uses past demand data to predict future demand over a specific period.

Correct Answer: In-process stock

In-process stock consists of partially completed products stored near the production site for rapid completion when needed.

Correct Answer: Cycle stock

Cycle stock is the regular inventory required to meet ongoing demand within a specific period.

Correct Answer: A line

Products that account for a significant percentage of sales and are assigned higher availability levels are classified as A-line items in Pareto analysis.

Correct Answer: Collecting raw materials on the return trip

Collecting raw materials or other loads on return trips ensures that transportation resources are used efficiently and reduces costs.

Correct Answer: Echelon distribution

Echelon distribution moves goods through a tiered process from manufacturers to warehouses, then to distribution centers, and finally to customers.

Correct Answer: Shortage cost

Shortage costs occur when a company does not have enough inventory to meet demand, resulting in penalties or lost sales.

Correct Answer: Increased product proliferation

Product proliferation leads to higher inventory costs as companies must manage a wider variety of goods, often requiring additional storage and handling.