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.

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.

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

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

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 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.

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

Are service levels predictions carried out using forecast algorithms?

Choose the correct answer.

No.

Yes.

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.

10.

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

Choose the correct answer.

No.

Yes.