MSC 824
Logistical Management
Second Midterm Study Questions
Dr. Closs
FS 2000
1.
2.
3.
Answer only the three circled questions – NO substitutes or additions.
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will void your examination.
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Inventory Systems Exam-1
MSC 824
Logistical Management
Second Midterm Study Questions
Dr. Closs
FS 2000
1.
Compare and contrast the role and capabilities of MRP/DRP and APS.
2.
Describe the components of inventory carrying cost percentage and
discuss the alternative strategies for establishing the opportunity cost
component.
3.
Explain the major assumptions behind Economic Order Quantity
(EOQ) model and discuss its limitations.
4.
Describe and illustrate an application of inventory stratification
analysis (also called ABC or fine line analysis). Discuss how the
results of stratification analysis should be used.
5.
Compare and contrast the role of time series vs. causal models for
logistics forecasting applications.
6.
Compare and contrast the role of Enterprise Resource Planning (ERP)
and Enterprise Extension systems. Include a discussion of the relative
features and capabilities.
7.
Compare and contrast the relative impact of performance cycle
uncertainty and demand uncertainty on safety stock requirements.
8.
Describe and illustrate how the convolution formula (Sigmac) is
related to the principle of logistics (geographic or time) postponement.
9.
Describe the forecast process model and discuss the relevant role and
contribution of each of the three components.
10.
Discuss the relative trade-offs associated with single and multidimensional bar coding applications. Why have multiple dimensional
bar coding applications not taken off in terms of popularity of use?
Inventory Systems Exam-2
11.
Your firm is planning to introduce a new product line. Your task is
to determine the inventory implications of the new product. The
typical product will ship an average of 20 units per day from the
firm’s central distribution center. Historical sales patterns indicate
that the standard deviation of daily sales should be approximately
3. The typical performance cycle for comparable products has
been a means of 7 days and a standard deviation of 2.
a. Assuming a replenishment quantity from the plant of 200 units,
what is the safety stock and resulting average inventory for a 95
percent case fill rate?
b. What are the inventory implications (safety stock and average
inventory) of increasing the case fill rate objective to 99
percent?
c. What would be the inventory implications for daily
replenishment with a 99 percent fill rate objective assuming that
the same level of demand and performance cycle uncertainty is
maintained?
FORMULAE
Convolution Formula
__________________
óc = (T * óS2) + (S2 * óT2)
Service Level Formula
SL = 1 – [ f(k) * óc] / OQ
Inventory Systems Exam-3
Table of Normal Loss Integral
k
f(k)
k
f(k)
k
f(k)
0.0
0.3989
0.7
0.1428
1.4
0.0366
0.1
0.3509
0.8
0.1202
1.5
0.0293
0.2
0.3068
0.9
0.1004
1.6
0.0232
0.3
0.2667
1.0
0.0833
1.7
0.0142
0.4
0.2304
1.1
0.0686
1.8
0.0110
0.5
0.1977
1.2
0.0561
1.9
0.0084
0.6
0.1686
1.3
0.0455
2.0
0.0074
Inventory Systems Exam-4