Knowledge quiz

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

What is an exposure period?

Choose the correct answer.

The exposure of within the standard deviation is equal to the lead time plus the periods between replenishment.

A period where we are protected against changes.

Does the forecast error calculation within SAP IBP for inventory support real scenarios?

Choose the correct answer.

No.

Maybe.

Forecast error calculation through the propagation considers all complexities of real worlds supply chains without simplifying assumptions.

With fixed internal service level, what happens to backlog when exposure goes up?

Choose the correct answer.

The backlog will increase.

The backlog will be reduced.

With fixed internal service level, what happens to backlog when internal demand standard deviation goes up?

Choose the correct answer.

The backlog will increase.

The backlog will be reduced.

What happens to the backlog when the internal service level goes up?

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The backlog will go up as well.

The backlog will be reduced.

What is the bullwhip effect according to the last lesson?

Choose the correct answer.

Small changes in actual customer demand can result in amplified, whip-like effects on upstream estimation of customer demand.

Big changes in actual customer demand can result in simplified, whip-like effects on downstream estimation of supply.

Will batch size affect total inventory?

Choose the correct answer.

Batch size will not affect total inventory.

Batch size might affect total inventory.

What does multistage inventory optimization achieve?

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SAP IBP for inventory simultaneously optimizes inventory across the end-to-end supply chain, constrained by customer service requirements with the lowest inventory holding cost. That means: over-buffering elimination, intra-site fill rate optimization, and demand variability propagation.

SAP IBP for demand simultaneously optimizes inventory by customer service requirements with the highest inventory holding cost. That means: over-buffering elimination, intra-site fill rate optimization, and demand variability propagation.

SAP IBP for response and supply optimizes inventory across the end-to-end supply chain, constrained by customer service requirements with the lowest inventory holding cost. That means: over-buffering elimination, intra-site fill rate optimization and demand variability propagation.

With fixed internal service level, what happens to the backlog when internal demand mean goes up?

Choose the correct answer.

The backlog will increase.

The backlog will be reduced.

10.

How can we calculate the safety stock on single-stage scenarios?

Choose the correct answer.

Via Excel formulas that everyone can invent.

Safety stock can be calculated as the multiplication of a factor, corresponding to service level, by the forecast error, by the square root of the exposure period (lead time plus periods between replenishment).