This involves network design (number/location of DCs), transportation mode selection, and route optimization. Techniques include:
Let’s say you see this question on a quiz:
"Using simple exponential smoothing with α = 0.3, if the forecast for period 5 was 100 units and actual demand for period 5 was 110 units, what is the forecast for period 6?"
Wrong approach: Search for the exact answer (103).
Right approach: Understand the formula:
Forecast(t+1) = Forecast(t) + α*(Actual(t) - Forecast(t))
= 100 + 0.3*(110 - 100) = 100 + 0.3*10 = 103.
Now you know why the answer is 103, so you can solve similar problems on the final exam.
When taking a Supply Chain Planning exam, certain words trigger specific correct answers. Memorize this table.
| If you see this term... | The correct answer is usually... | | :--- | :--- | | "Minimize total cost" (Inventory) | Economic Order Quantity (EOQ) | | "Uncertainty in demand only" | Newsvendor Model (Single Period) | | "Cooperation between buyer & seller" | Vendor Managed Inventory (VMI) | | "Level Production vs. Chase Demand" | Aggregate Planning Strategy | | "SKU Rationalization" | Pareto Principle / ABC Analysis (The 80/20 rule) | | "Risk of stockout" | Safety Stock | | "Service Level 95%" | Z-score of 1.645 | | "Postponement" | Delaying differentiation (e.g., Apple engraving) | | "Double marginalization" | Lack of coordination / Pricing inefficiency |
Sample Question using the Cheat Sheet:
"A company wants to decide how many newspapers to print each morning. Demand is uncertain, but the cost of printing is $0.50 and the salvage value is $0.05. Which model should they use?"
Following the cheat sheet: "Uncertainty in demand only" → Answer: Newsvendor Model.
This involves network design (number/location of DCs), transportation mode selection, and route optimization. Techniques include:
Let’s say you see this question on a quiz:
"Using simple exponential smoothing with α = 0.3, if the forecast for period 5 was 100 units and actual demand for period 5 was 110 units, what is the forecast for period 6?"
Wrong approach: Search for the exact answer (103).
Right approach: Understand the formula:
Forecast(t+1) = Forecast(t) + α*(Actual(t) - Forecast(t))
= 100 + 0.3*(110 - 100) = 100 + 0.3*10 = 103.
Now you know why the answer is 103, so you can solve similar problems on the final exam.
When taking a Supply Chain Planning exam, certain words trigger specific correct answers. Memorize this table.
| If you see this term... | The correct answer is usually... | | :--- | :--- | | "Minimize total cost" (Inventory) | Economic Order Quantity (EOQ) | | "Uncertainty in demand only" | Newsvendor Model (Single Period) | | "Cooperation between buyer & seller" | Vendor Managed Inventory (VMI) | | "Level Production vs. Chase Demand" | Aggregate Planning Strategy | | "SKU Rationalization" | Pareto Principle / ABC Analysis (The 80/20 rule) | | "Risk of stockout" | Safety Stock | | "Service Level 95%" | Z-score of 1.645 | | "Postponement" | Delaying differentiation (e.g., Apple engraving) | | "Double marginalization" | Lack of coordination / Pricing inefficiency |
Sample Question using the Cheat Sheet:
"A company wants to decide how many newspapers to print each morning. Demand is uncertain, but the cost of printing is $0.50 and the salvage value is $0.05. Which model should they use?"
Following the cheat sheet: "Uncertainty in demand only" → Answer: Newsvendor Model.