Knowledge quiz

It's time to put what you've learned to the test, get 8 right to pass this unit.

Which are the four safety stock drivers in terms of variability?

Choose the correct answer.

1) Forecast error variability, 2) Service variability, 3) Lead time variability, and 4) Supply quantity variability

There is not uncertainty within the supply chain. Therefore, we do not need to model variability.

An Inventory optimization algorithm should be activated. How can a user activate this process?

There are two correct answers.

Triggered by the planner via the SAP IBP, add-in for Microsoft Excel

Via a configuration parameter

As batched-based process

What is the main purpose of the Multi-Stage Network Operator?

Choose the correct answer.

Calculate a multi-echelon inventory plan.

Visualize dependencies of nodes within the network.

Which special characteristics are being supported by the target inventory optimization?

Choose the correct answer.

It supports minimum stock requirements and cost per unit as inputs; It supports sub-network (PLUNITID) filters in Batch Mode; it supports unit of measure conversion for input and output key figures; and, it supports production and transportation lot size periods of coverage for PBR.

There are not special characteristics supported by a TIC.

A multistage inventory optimization implies a process which occurs simultaneously. Why should different stages share the risk?

There are two correct answers.

To propagate demand from downstream to upstream

To model the impact of the Internal Service Level (ISL) decision of the upstream stage at the downstream stage

Why do you use the target inventory components calculation?

Choose the correct answer.

You use the Calculate Target Inventory Components operator to calculate the types of inventory that comprise the total inventory for a given item to support a more granular inventory optimization calculation.

You do not use the Calculate Target Inventory Components operator to calculate the types of inventory that comprise the total inventory for a given item to support a more granular inventory optimization calculation.

What does the expected loss demand calculation allow you to do?

Choose the correct answer.

The expected loss demand calculation allows you to estimate the opportunity loss for the selected target service levels by calculating the average lost demand quantity (or average expedited quantity) under a given inventory plan and demand distribution.

It calculates target inventory components such as cycle stock, pipeline stock, merchandising stock, and the average inventory position

After having activated a target inventory components calculation, why do you use a single-stage inventory optimization?

Choose the correct answer.

You use the Decomposed (single-stage) inventory optimization operator to calculate recommended safety stock and target inventory position values locally for each product-location combination.

You use the Decomposed (single-stage) inventory optimization operator to calculate recommended safety stock and target inventory position values locally for each product-location combination instead of a global inventory optimization.

Is there a global parameter for the consideration of safety stock limitation?

Choose the correct answer.

No.

Yes.

10.

How does the inventory optimization work?

There are three correct answers.

It optimizes the stock globally and simultaneously over all products and locations

It calculates the forecast error CV

The global run makes sure that all propagated demands are calculated