# Shared Flashcard Set

## Details

Final Exam Review
INFO 364
36
05/06/2013

Term
 Chapter 15
Definition
Term
 Qualitative Vs. Quantitative Forecasting
Definition
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Term
 Forecasting Approaches
Definition
 Qualitative:1. Panel consensus2. Delphi method3. Historical analogy4. Market researchQuantitative->Time Series1. Moving average2. Weighted moving average3. Exponential smoothing->Causal Relationship1. Regression
Term
 Strategic Forecasts
Definition
 Medium and long-term forecasts that are used to make decisions related to design and plans for meeting demand.
Term
 Tactical Forecasts
Definition
 Short-term forecasts used as input for making day-to-day decisions related to meeting demand.
Term
 Dependent Demand
Definition
 Requirements for a product or service caused by the demand for other products or services. This type of internal demand does not need a forecast, but can be calculated based on the demand for the other products or services.
Term
 Independent Demand
Definition
 Demand that cannot be directly derived from the demand for other products.
Term
 Time Series Analysis
Definition
 A type of forecast in which data relating to past demand are used to predict future demand.
Term
 Linear Regression Forecasting
Definition
 A forecasting technique that assumes that past data and future projections fall around a straight line.
Term
 Exponential Smoothing
Definition
 A time series forecasting technique in which each increment of past demand data is decreased by (1-⍺).
Term
 Smoothing Constant Alpha (⍺)
Definition
 The parameter in the exponential smoothing equation that controls the speed of reaction to differences between forecasts ad actual demand.
Term
 Smoothing Constant Delta (δ)
Definition
 An additional parameter used in an exponential smoothing equation that includes a adjustment for trend.
Term
Definition
 The average forecast error using absolute values of the error of each past forecast.
Term
 Mean Absolute Percent Error (MAPE)
Definition
 The mean absolute deviation divided by the average demand. The average error expressed as a percentage of demand.
Term
 Tracking Signal
Definition
 A measure that indicates whether the forecast average is keeping pace with any genuine upward or downward changes in demand.
Term
 Chapter 17
Definition
Term
 Inventory
Definition
 The stock of an item or resource used in an organization.
Term
 Independent/Dependent Demand
Definition
 Independent- Demands for various items are unrelated to each other.Dependent- The need for any one item is a direct result of the need for some other item, usually an item of which it is a part.
Term
 Single-Period Inventory Model Examples
Definition
 1. Hotel reservations2. Overbooking of airline flights3. Ordering of fashion items4. Any type of one-time order (T-shirts for a sporting event)
Term
 Fixed-Order Quantity Models (Q-Model)
Definition
 An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory.-favors more expensive items because avg inventory is lower
Term
 Fixed-Time Period Models (P-Model)
Definition
 An inventory control model that specifies inventory is ordered at the end of a predetermined time period. The interval of time between orders is fixed and the order quantity varies.-has a larger avg inventory because it must also protect against stockout during the review period
Term
 Inventory Position
Definition
 The amount on-hand plus on-order minus back-ordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocated amounts.
Term
 Safety Stock
Definition
 The amount of inventory carried in addition to the expected demand.
Term
 Cycle Counting
Definition
 A physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.
Term
 Chapter 11
Definition
Term
 Strategic Sourcing
Definition
 The development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of a business.
Term
 Vendor Managed Inventory
Definition
 When a customer allows the supplier to manage an item or group of items.
Term
 Bullwhip Effect
Definition
 The variability in demand is magnified as we move from the customer to the producer in the supply chain.
Term
 Functional Products
Definition
 Staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.
Term
 Innovative Products
Definition
 Products such as fashionable clothes and personal computers that typically have a life cycle of just a few months.
Term
 Outsourcing
Definition
 Moving some of a firm's internal activities and decision responsibility to outside providers.
Term
 Logistics
Definition
 Management functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-process; tot he purchasing, shipping, and distribution of the finished product.
Term
 Inventory System
Definition
 The set of policies and controls that monitor levels of inventory and determine what levels should be maintained, when stock should be replenished, and how large orders should be.
Term
 Manufacturing Inventory
Definition
 Generally refers to items that contribute to or become part of a firm's product output. Classified into:-Raw materials-Finished products-Component parts-Supplies-Work-in-process
Term
 Purposes of Inventory
Definition
 1. To maintain independence of operations2. To meet variation in product demand3. To allow flexibility in production scheduling4. To provide a safeguard for variation in raw material delivery time5. To take advantage of economic purchase order size
Term
 Inventory Costs
Definition
 1. Holding (or carrying) costs -Costs for storage, handling, insurance, etc.2. Setup (or production change) costs -Costs for arranging specific equipment setups, etc.3. Ordering costs -Costs of someone placing an order, etc.4. Shortage costs -Costs resulting from stock out
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