supply chain final

production manufacturing activities

raw materials, WIP, components

financial stability is one of the factors of selecting a supplier

true

forecasts are…

almost always wrong

inventory turns

annual cogs/average inventory

non value added

waste

name 2 wastes

waiting and inventory

5Ss

sort, simplify, sweep, standardize, self discipline

one weakness of EOQ

requires safety stock

how many defects are in six sigma

3.4 defects per million

costs of quality

appraisal, prevention, external and internal failure

MRO

cleaning supplies, spare parts, and tools

inventory costs

item, carrying, ordering, stockout, capacity

cycle count or annual review is better

cycle count

sole source supplier has the

most negotiating power

3 physical distribution activities include

transportation, warehousing, and inventory control

what is the most common form of transport

trucking

air transport is both fast and inexpensive

false

what is easy to convert to cash

inventory