Knowledge quiz

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

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.

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.

Do the inventory operators run a master data quality check?

Choose the correct answer.

Yes

Maybe

In multi-stage supply chains, stages are linked together. Which is the interaction between the downstream and upstream sides in terms of service level?

Choose the correct answer.

There is no influence.

There are not two sides.

The upstream service level has an impact on the ability to meet the service level downstream.

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

Choose the correct answer.

No.

Yes.

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.

What does the target inventory components calculation estimate?

Choose the correct answer.

There is no difference within a TIC.

We can run first a GIO and then a TIC.

It runs a calculation with respect to optimal inventory targets; It estimates target, average quantities, and currency values of inventory position, on-hand stock, cycle stock, pipeline stock, and merchandising stock; It calculates the reorder point and the days of supply for recommended safety stock and for on-hand stock (target, average and end of period); and, it calculates values for the whole network.

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

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

10.

What does the single-stage inventory optimization do?

Choose the correct answer.

Anything at all.

Only two things

It runs simulations when you want to determine the impact on recommended safety stock for local changes to input key; it produces missing data when you have an individual node of the supply chain with incomplete inventory data; it calculates values for a scope defined by the planning filters or Excel view filters; and, it supports unit of measure conversion for input and output key figures.