370 Test 2 Review

370 Test 2 Review - Capacity: Measure of an organization's...

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Capacity : Measure of an organization’s ability to provide goods or services. Lead Capacity Strategy: capacity added in anticipation of demand Match Capacity: a balance between the lead and lag capacity strategies by avoiding  periods of high under or over utilization Lag Capacity: capacity added only after demand has materialized (opposite of lead) Capacity Decisions: Strategic  Constraints: Elevating the constraint: increase the capacity of the restraint (opening new register) Identify: find what the issue is Exploit: making sure everything flows. An hour lost on one part of the chain is an hour lost  on the entire chain. Subordinate: effective utilization of the constraint, everything else is secondary Forecasting Characteristics Almost always      wrong More accurate for groups  or families More accurate for shorter  time periods No substitute      for calculated demand. Linear Regression: statistical technique that expresses the forecast variable as a linear function of  some independent variable. 
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Weight Moving Average: a form of the moving average model that allows the actual weights applied to past observations to differ. Exponential Smoothing with Trend: Life Cycle Analogy: a qualitative forecasting technique that attempts to identify the time frames and demand levels for the introduction, growth, maturity, and decline life cycle stages of a new product or service. Delphi Method: technique that has experts work individually to develop forecasts, and then they come back to the group and explain things that are going on. Multiple Sourcing Advantages o Creates competition o Spread risk (in event of a fire, strike, etc. at one supplier) o Required if the purchased volume is too great for one supplier o Desired if firm wishes to meet obligations to support minority
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370 Test 2 Review - Capacity: Measure of an organization's...

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