Knowledge quiz

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

What are the pipeline stock key drivers?

Choose the correct answer.

Pipeline stock key drivers are: lead time and demand

Cycle stock and safety stock

What is the sequence of the inventory planning functions?

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1) Global (multi-stage) inventory optimization; and then 2) Calculate target inventory components or activate the decomposed (single-stage) inventory optimization.

1) Forecast Error Calculation; 2) Global (multi-stage) inventory optimization; and then 3) Calculate target inventory components or activate the decomposed (single-stage) inventory optimization.

What are the cycle stock key drivers?

Choose the correct answer.

Replenishment frequency, demand, and batch size

Pipeline stock and safety stock

A supplier moves further away, increasing physical lead time. Which type of inventory is most impacted?

There are two correct answers.

Pipeline

Cycle

Safety

A new salesperson joins the firm, decreasing forecast accuracy. Which type of inventory is most impacted?

There are three correct answers.

Cycle

Pipeline

Safety

An order cycle changes from once per week to once per month. Which type of inventory is most impacted?

There are two correct answers.

Cycle

Pipeline

Safety

What are two important questions to characterize and to define the safety stock?

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1) Where do we need the safety stock?, 2) How much time do I have to invest to keep the safety stock?

1) How often do situations occur in which the safety stock is needed at all?, 2) In how many of these cases is the amount of safety stock not sufficient to satisfy the requirement?

What are the parameters to be checked when a user validates the inputs for inventory planning and optimization?

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Target service level; periods between review; lead times and their variability; forecast and its variability; identification of big spikes in demand; and, identification of strong increase in variability in lead time as well as forecast, compared to previous cycles.

Key figures, attributes, master data types, planning levels, global parameters, and planning. operators

What is the safety stock in this model when there is zero variability?

Choose the correct answer.

100

None, assuming no variability

10.

Why are periods between reviews (PBRs) important for the inventory planning process?

Choose the correct answer.

Periods between review are not relevant for the inventory planning process.

Periods between review are increasing the forecast accuracy.

Periods between review increase the uncertainty period for which the inventory quantity needs to be sufficient to be able to deliver.