Supply Chain Management Metrics: Back order – An unfilled customer order. A back order is demand (immediate or past due) against an item whose current stock level is insufficient to satisfy demand. Customer order promised cycle time – The anticipated or agree upon cycle time of a purchase order. It is a gap between the purchase order creation date and the requested delivery date. Customer order actual cycle time – The average time it takes to actually fill a customer’s purchase order. This measure can be viewed on an order or an order line level. Inventory replenishment cycle time – Measure of the manufacturing cycle time plus the time included to deploy the product to the appropriate distribution center. Inventory turns (inventory turnover) - The number of times that a company’s inventory cycles or turns over per year. It is one of the most commonly used supply chain metrics. Here's a question for you: to track these metrics, what kind of a system would you need to implement in your small business?

Supply Chain Management Metrics: Back order – An unfilled customer order. A back order is demand (immediate or past due) against an item whose current stock level is insufficient to satisfy demand. Customer order promised cycle time – The anticipated or agree upon cycle time of a purchase order. It is a gap between the purchase order creation date and the requested delivery date. Customer order actual cycle time – The average time it takes to actually fill a customer’s purchase order. This measure can be viewed on an order or an order line level. Inventory replenishment cycle time – Measure of the manufacturing cycle time plus the time included to deploy the product to the appropriate distribution center. Inventory turns (inventory turnover) - The number of times that a company’s inventory cycles or turns over per year. It is one of the most commonly used supply chain metrics. Here's a question for you: to track these metrics, what kind of a system would you need to implement in your small business?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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The retailer makes a notification of a customer order to the demand planning area. TRUE or FALSE
The supply chain management opportunity called postponement involves delaying deliveries to prevent inventory buildup at the customer site. Select one: a. False b. True
The revenue cycle is a method of defining and maintaining the processes used for the completion of an accounting process for recording revenue generated from services or products provided by the company, which include the accounting process of tracking and recording transaction from the beginning, normally which starts from receiving an order from the customer or entering in agreement with the customer, delivering an order to customer and end with getting payment from the customer. The figure on the next page describes the different business activities of four departments, including (1) Sales Department, (2) Accounting Department, (3) Warehouse/Shipping, and (4) Mailroom. Required: Based on the below figure, discuss the uncontrolled risks associated with the system as currently configured? And describe the controls that need to be implemented into the system to mitigate the risks in the given scenario.
“As soon as the customer places an Order, it is received by the Sales department and a Sales Order is created. The Sales Order is sent to the Finance Department to check if the customer has any outstanding balance for more than 60 days. The AR Clerk at the Finance Department checks and sends the results back to the Sales Department. If there is an outstanding balance for more than 60 days, the Sales Department puts the Order on hold and notifies the customer. Otherwise, the Order Entry Clerk creates an Order Confirmation and sends it to the customer. Simultaneously a Picking List is generated and sent to the Order Fulfilment Department who picks up the next set of process steps. The Order Fulfilment Department receives the Picking List and determines which Warehouse is closest to the Customer location. The Picking List is sent to that Warehouse location. There, the items from the Picking List are picked. An Invoice is generated and printed. The items are packed along with the printed…
The definition of work-in-process (WIP) inventory is: Select one: a. An end item ready to be sold, but still an asset on the company's books. b. Products or components that are no longer raw materials but have not yet become finished products. c. Materials for maintenance, repair and operation. d. Materials that are normally purchased but have not yet entered the manufacturing process. and. Additional stock to allow for uneven demand; a buffer.
It has been theoretically and empirically generalized that Recency is always the most important factor for classification of customers in RFM analysis. True False
The sales department encourages its customers to forward the orders in any form, including mail, e-mail or fax. The sales clerk first converts these sales order into the standardised sales order. For this purpose, the sales representative requests the missing information, if any. When the order is received, the sales clerk checks the customer’s creditworthiness of the customer from his computer terminal. Sales clerk thinsk that checking the accounting record is not technical and he can perform these duties efficiently. Two years ago, the sales clerk requested the accounting department to provide him with a list of customers whose account receivables are written off. The sales clerk is still using thisinformation to check the creditworthiness of the customers. The sales clerk did not differentiate the new customers from the existing customers and he is using the same procedure to check the creditworthiness of the new customers. The customer’s order is rejected if the customer’s credit…
Which of the following is true with regard to push and pull systems? Push systems are systems in which services or products are produced based on forecasts. In pull systems, the product or service is produced because its production is mandated by a central planning organization In pull systems, the product or service is regulated by a government agency In push systems, inventory is completely eliminated
The mailroom receives checks and remittanceadvices from customers in payment of their accountsreceivable. The clerk reviews the documents for completenessand correctness, sends the checks to thecash receipts department, and sends the remittanceadvices to the AR department. The AR clerkreceives the remittance advices and updates the customers’AR records from the PC in the AR department.The cash receipts clerk receives the checks andposts them to the cash receipts journal from the PCin the department. The clerk then sends the checks tothe bank for deposit.RequiredPrepare a system flowchart of the proceduresdescribed previously.
A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information. (a)Using EOQ (rounded up), what is the time interval between reviews T in operating days? Note that after having the rounded-up EOQ, you should not round up values at intermediate steps; and, you should round T up only after the last calculation. (For example: enter 10 for 10 days.) (b) What is the current inventory position (IP) in bottles? (For example: enter 70 for 70 bottles) (c)Without safety stock, what is the replenishment level without safety stock M(AD) in bottles? Note that the question does not ask for M(ST). (For example: enter 70 for 70 bottles) (d)If today is the review day and without safety stock, what is the order quantity in bottles given M(AD)? (For example: enter 70 for 70 bottles)
The repeated observations of demand for a product or service in the order of occurrence form a pattern known as a time series.
The following data pertains to Slide Corp.’s: (use 360 days/year) Slide Corp.’s payment to suppliers Slide Corp.’s collection from customers Processing Delay 4 days Processing Delay 2 days Clearing Delay 1 day Clearing Delay 24 hours Mail time 1 week Mail time 4 days Slide Corp.’s daily collection average P1,800 while average daily payment is P2,700. How much is the average daily disbursement float? How much is the average daily collection float? How much is the net float? If the cash can be readily invested in instrument earning 6%, how much is the daily cost of collection float?