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Exam (elaborations)

SCM 470 Quiz 2 Graded A+

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SCM 470 Quiz 2 Graded A+ Safety Stock ️protects from uncertainty Decoupling Inventory ️different processing rates Anticipatory Inventory ️prebuild inventory for the future Cycle Stock ️average lot or badge size Pipeline Inventory ️moving from point A to point B Reasons to HOLD...

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  • October 16, 2024
  • 2
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • SCM 470 Qz 2 Graded A+
  • SCM 470 Qz 2 Graded A+
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SCM 470 Quiz 2 Graded A+

Safety Stock ✔️protects from uncertainty



Decoupling Inventory ✔️different processing rates



Anticipatory Inventory ✔️prebuild inventory for the future



Cycle Stock ✔️average lot or badge size



Pipeline Inventory ✔️moving from point A to point B



Reasons to HOLD inventory ✔️- Meet customer demand

- Temper uncertainty

- Economies of scale

- Profit during inflation

- Manage lead times



Reasons to MINIMIZE inventory ✔️- Obsolescence, breakage, theft

- Storage and handling costs

- Taxes and insurance

- Opportunity costs of money

- Hidden costs of quality



Work in Process (WIP) ✔️throughput time * processing rate (demand)



All 7 types of muda ✔️1) Waiting time, 2) transport, 3) overprocessing, 4) overproduction, 5) inventory,
6) motion, 7) defect

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