D471 Global Supply Chain Management - Set 1 - Part 3

Correct Answer: Make-to-Order

Make-to-Order is a production strategy where products are made according to specific customer orders, allowing for customization based on individual requirements.

Correct Answer: Fluctuations in demand that cause increased distortion as they move up the supply chain

The bullwhip effect describes how small changes in consumer demand can lead to larger fluctuations in demand further up the supply chain, affecting production and inventory management.

Correct Answer: Minimize waste and reduce inventory costs

JIT aims to streamline production and reduce waste by maintaining minimal inventory levels and ensuring that materials arrive just as they are needed in the production process.

Correct Answer: Materials are moved based on forecasts and predetermined schedules.

A push system operates by producing goods based on forecasted demand rather than actual customer orders, leading to potential overproduction and excess inventory.

Correct Answer: Qualitative methods

Qualitative forecasting methods rely on subjective judgment and opinions, making them suitable for new products or situations where historical data is lacking.

Correct Answer: Minimize the total costs of ordering and holding inventory

The EOQ model is designed to help firms find the optimal order quantity that minimizes the total costs associated with ordering and holding inventory.

Correct Answer: Statistical Process Control (SPC)

Statistical Process Control (SPC) involves using statistical tools to monitor and analyze process performance and capabilities, ensuring that the process remains within acceptable limits.

Correct Answer: Economies of scope

Economies of scope allow companies to reduce costs by producing a variety of products using the same equipment, thus leveraging fixed costs across multiple products.

Correct Answer: 12-16 weeks

The planning horizon for an MPS usually spans 12-16 weeks, allowing for detailed scheduling of production activities and alignment with demand forecasts.

Correct Answer: Panel of experts (Delphi technique)

The Panel of Experts (Delphi technique) is a qualitative forecasting method that gathers insights and opinions from knowledgeable individuals to make predictions in situations lacking historical data.