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Question 1

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Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Mont

Question 2

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A customer requests an order of 100 units in Period 1. The master schedule for the item indicates an available-to-promise (ATP) of 85 units for Period 1. Which of the following approaches is the mo

Question 3

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Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

Question 4

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A vendor-managed inventory (\VMI) program provides a benefit to the buying company in which of the following ways?

Question 5

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What is the purpose of a buffer in the theory of constraints (TOC)?

Question 6

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Which of the following tools is used for monitoring a capacity plan?

Question 7

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The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

Question 8

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A factory work center has the following work orders. What is the load on this work center?

Question 9

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The horizon for forecasts that are input to the sales and operations planning (S&O0P) process should be long enough that:

Question 10

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Rivalry among competing sellers is generally weaker when:

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Related questions

In an assemble-to-order (ATO) environment, option overplanning is used to:

Providing a realistic basis for setting internal performance targets can be accomplished through:

In which of the following environments is capable-to-promise (CTP) more appropriate than available-to-promise (ATP)?

Fixed order quantity = 100 units Lead time = 2 weeks Safety stock = 25 units What is the projected available balance in period 5?

When designing a production cell, which of the following items would be the most important consideration?

What is the main negative effect of changing the due dates of open orders?

Product X sells for $20 each, and it has a variable cost of $5 per unit. The company sells 10,000 units per year and has a fixed cost of $120,000. What is the break-even point in units for Product X?

In the sales and operations planning (S&0P) process in a repetitive manufacturing environment, the resulting operations plan for a product family could be stated in terms of which of the following outputs?

Sales and operations planning (S&0P) in a make-to-stock (MTS) environment is concerned with projecting:

Collaborative planning, forecasting, and replenishment (CPFR) typically would be most effective for a:

Question 36 - CPIM-Part-2 discussion

Report

Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network?

A.

Production cost and lot size quantity

B.

Purchase cost and shrinkage rates

C.

Transportation cost and delivery time

D.

Customer price and order quantity

Suggested answer: C

Explanation:

One of the trade-offs that should be evaluated when determining where to place inventory in a multi-echelon supply chain network is the transportation cost and delivery time.A multi-echelon supply chain network is a system of interconnected stages or echelons that perform different functions, such as production, distribution, and retailing, to deliver products or services to the end customers1.Inventory placement is the decision of how much and where to hold inventory in the supply chain network to balance the costs and service levels2.

Transportation cost is the expense of moving products or materials from one echelon to another in the supply chain network.Transportation cost depends on factors such as distance, mode, volume, weight, fuel, and tariffs3. Delivery time is the duration of moving products or materials from one echelon to another in the supply chain network.Delivery time depends on factors such as speed, reliability, frequency, and congestion3.

There is a trade-off between transportation cost and delivery time when determining where to place inventory in a multi-echelon supply chain network.Generally, holding more inventory closer to the customers can reduce the delivery time and increase the service level, but it can also increase the transportation cost and the inventory holding cost4.On the other hand, holding less inventory farther from the customers can reduce the transportation cost and the inventory holding cost, but it can also increase the delivery time and decrease the service level4. Therefore, finding the optimal inventory placement requires balancing the transportation cost and delivery time trade-off.

Some of the methods or tools that can help evaluate the transportation cost and delivery time trade-off are:

Network optimization: a technique that uses mathematical models to optimize the design and configuration of a supply chain network by minimizing the total costs (including transportation and inventory costs) while satisfying the service level requirements.

Multi-echelon inventory optimization: a technique that uses mathematical models to optimize the allocation and sizing of safety stocks across multiple echelons of a supply chain network by minimizing the total costs (including transportation and inventory costs) while satisfying the service level requirements.

Simulation: a technique that uses computer software to mimic the behavior and performance of a supply chain network under different scenarios and assumptions. Simulation can help evaluate the impact of different inventory placement strategies on the transportation cost and delivery time.

Therefore, transportation cost and delivery time is one of the trade-offs that should be evaluated when determining where to place inventory in a multi-echelon supply chain network.

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asked 16/09/2024

Josh Rose

40 questions

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Your answer: A B C D

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