Exhibit:A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?
Answer(s): B
Customer service level is the percentage of customer orders that are fulfilled on time and in full. A company that prioritizes customers A, B, and C, filling orders in that sequence, will have different impacts on the service levels for customers B and C, depending on the availability of stock and the order quantities. Based on the table in the exhibit, customer B will have a higher service level than customer C, because customer B will receive all the ordered units for item 468 and item 617, while customer C will only receive partial units for item 468 and none for item 617. Customer C will also receive none of the ordered units for item 643, while customer B will receive some of them. Therefore, customer B will have a higher percentage of orders fulfilled on time and in full than customer C.
1 Customer Service Level: Definition, Standards, Measuring | SupportYourApp 2
Which of the following statements correctly describes the relationship between the strategic plan and the business plan?
A strategic plan is a document that outlines the long-term vision, goals, and direction of an organization. It defines the scope and purpose of the organization, identifies the key stakeholders and customers, analyzes the external and internal environment, and sets the strategic priorities and initiatives. A business plan is a document that describes the details of a specific business venture, product, or service. It covers the market analysis, marketing strategy, financial plan, operational plan, and risk assessment. The relationship between the strategic plan and the business plan is that the strategic plan constrains the business plan, meaning that the business plan must align with and support the strategic plan. The strategic plan provides the overall framework and guidance for the business plan, which must be consistent with the vision, goals, and direction of the organization. The business plan must also consider the opportunities and threats identified in the strategic plan, and show how the business venture, product, or service will contribute to the strategic objectives and performance indicators.
1 Strategic Plan vs. Business Plan: What's the Difference? 4 2 Business Plan Definition - Entrepreneur Small Business Encyclopedia 5 3 Difference between aBusiness vs Strategic Plan | OnStrategy 6 4 CPIM Exam Reference - Association for Supply Chain Management 1
Which of the following conditions is most likely to result in planned production that is greater than the total demand over the sales and operations planning (S&OP) horizon for a product family that is made to stock?
Answer(s): A
Customer service level is the percentage of customer orders that are fulfilled on time and in full. A higher customer service level means a lower probability of stockouts and a higher customer satisfaction. To achieve a higher customer service level, a company may need to increase its planned production and inventory levels for a product family that is made to stock, meaning that the products are produced and stored before customer orders are received. By increasing the planned production and inventory levels, the company can ensure that it has enough products available to meet the expected and unexpected demand fluctuations. Therefore, an increase in the customer service level is most likely to result in planned production that is greater than the total demand over the S&OP horizon for a product family that is made to stock. Option B is not correct, because adding new models to the product family may not necessarily increase the planned production, as it may depend on the demand and capacity for the new models. Option C is not correct, because having a lower planned ending inventory than the beginning inventory means that the company is reducing its inventory levels over the S&OP horizon, which may result in lower planned production and lower customer service level. Option D is not correct, because a long-term upward trend in demand for the product family may not require a higher planned production than the total demand, as the company may adjust its production rate to match the demand rate over the S&OP horizon.
A house of quality (HOQ) chart aligns which pair of functions?
Answer(s): D
A house of quality (HOQ) chart is a product planning matrix that is used to show how customer requirements relate directly to the ways and methods companies can use to achieve those requirements. HOQ charts are part of the quality function deployment (QFD) method, which helps to ensure quality in product development and service delivery. HOQ charts use a design that resembles the outline of a house, with different sections representing different aspects of the product or service. One of the functions that a HOQ chart aligns is competitive analysis with product design. Competitive analysis is the process of evaluating the strengths and weaknesses of the competitors in the market, and identifying the opportunities and threats they pose to the company. Product design is the process of creating the features, functions, and specifications of the product or service that meet the customer needs and expectations. A HOQ chart aligns these two functions by comparing the company's product design with the competitors' product design, and showing how well the company's product design satisfies the customer requirements. This helps the company to identify the areas of improvement, differentiation, and innovation in the product design, and to create a competitive advantage in the market.
1 House of Quality Tutorial - How to Fill Out a House of Quality | ASQ 4 2 House of quality | Explanation with example - IONOS 5 3 CPIM Exam Reference - Association for Supply Chain Management 1
Given the bill of material (BOM) information below and independent requirements of 10 pieces (pcs)per week of Component A and 20 pieces (pcs) per week of Component B, what is the weekly gross requirement of component F?
Answer(s): C
Given the bill of material (BOM) information, we can calculate the weekly gross requirement of component F by considering the independent requirements of Component A and B. For ComponentA, there is no direct requirement for Component F. For Component B, which has an independent requirement of 20 pcs per week, each requires 4 pcs of Component F according to its BOM. So, the total weekly gross requirement for Component F due to Component B is 204 = 80 pcs. Additionally, each piece of Component A requires 2 pieces of Component C according to its BOM and has an independent requirement of 10 pcs per week; hence requiring a total of 20 pieces of component C per week. Each piece of component C in turn requires 4 pieces of component F according to its BOM; hence requiring a total weekly gross requirement for component F due to component A is: 204 =80 pcs. Adding both gives us a total weekly gross requirement for component F as:80+80=160pcs.
* CPIM Part 1 Learning System, Module 4: Inventory Management, Section 4.2: Inventory Management Policies and Objectives* CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.3: CapacityManagement
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