Purchasing
Which strategic sourcing strategy do we use KISS (Keep it Straight + Simple)?
Routine
What is a cross-docking operation
cases go in and out there is zero processing
How to categorize inventory
A, B, C based on % of Annual Dollar Useage
when the weights get closer to zero
the forecasts are more stable
What is the bill of Materials
the dependent, demand items (ingredients)
When not to buy
strategic activities or ones you do better
send one big load to a facility to process than do LTLs closer to locations instead of doing LTLs farther distances
what is order line v unit fill rate
order line groups by product, while unit is each individual thing ordered
S&OP process in internal to the company and requires doing
integrated reconcilliation of supply, demand, and product review
what is the difference of dependent and independent demand
dependent- raw materials, BOM
independent- finished goods, MPS
seven rights of purchasing
delivery, service, material, price, time, quantity, + supplier
3PLs have two different types
asset-based: own their own trucks/warehouses
non asset-based: intermediaries
What are the two types of inventory review
Periodic- type C
Continuous- type A
Two main types of quantitative forecasting
correlational- regression
time-series- moving average and exponential weighting
what are the inputs of MRP
MPS, BOM, inventory records
What are the two types of relationships with suppliers
transactional v strategic
what is FOB
Free on Board clarifies when responsibility, risk, and costs transfer
Economic Order Quantity was derived from what
intersection of holding and order costs
MAD penalizes larger errors
what is net requirenements
gross req - scheduled reciepts - available inventory
How purchasing relates to TCO
TCO = cost of internal operations + additional outsourcing costs
FOB origin and FOB destination when does risk transfer
origin- sellers dock
destination- buyers dock
what are the variables for order cost, holding cost, and unit value
order cost- i
holding cost- K
unit value- c
Tracking Signal
RSFE/MSE its the degree of fluctuation
How to solve for available to promise
ATP = (on hand inventory + MPS) - sum(actual orders)