SCMFinalNotes - Fuck SCM But still gotta study for it...

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Fuck SCM But still gotta study for it…
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Process Management (3 pts) Output: ? Productivity = output/labor hr. Labor Productivity = jobs per day  /  labor hr. Maximum capacity : highest achievable level under ideal conditions,  for a limited time Effective capacity : achievable level under normal conditions, for an  extended time Capacity cushion  is the difference between the maximum capacity  and the effective capacity, usually, but not always, stated as a  percentage. Utilization : how much available capacity is actually used
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Formulas Break-even analysis: FC + VCx = FC + VCx (solve for x) If forecast is less than BEP, pick process with lower FC Inventory Turnover: =COGS/Avg. Inv. @ cost =Net Sales/Avg. Inv. @ retail =Sales in units/Avg. Inv. In units Throughput rate = reciprocal of cycle time @ bottleneck Utilization of max capacity = actual orders/max (x100) Utilization of effective capacity = actual orders/effective cap. (x100)
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Capacity Management (1 pt) What is this??
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Break-Even Between Processes Duh FC + VCx = FC + VCx Solve for x If forecast is less than BEP, pick process with  lower FC
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Fundamentals of Inventory Problems Turnover (in previous slides) Advantages  of high turn over: ‘Fresh’ inventory from high sales Reduced risk or mark down from obsolescence Reduced total carrying costs Lower asset investment and higher productivity Dangers  of high turnover: Stockouts may mean lower sales Increased costs from missing quantity requirements Increased ordering costs Days of supply Inventory carrying cost
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Independent Demand Inventory (6pt) ROP =  (Avg. Daily Demand)(Lead time) + Safety Stock EOQ = sq. root(2(annual demand*ordering cost) / (unit price*ICC %)) TAC = order cost + ICC + Product Cost SS Inventory turnover avg. inventory = cycle stock + SS Cycle stock = OQ/2 Cost of SS
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Normal Distribution 1 standard deviation covers 84.13% of the possibilities 1.04 standard deviations covers 85%  1.28 standard deviations covers 90% 1.65 standard deviations covers 95% 1.96 standard deviations covers 97.5%  2 standard deviations covers 97.72% of the possibilities 2.33 standard deviations covers 99% 3 standard deviations covers 99.86% of the possibilities
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Forecast Error/Accuracy
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Aggregate Capacity Planning
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Dependent Demand BOM MRP
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Conceptual: Part 1 (ch’s 2,3,5,7) Omit Chapter 1and Introduction lecture Different dimensions of product “quality” Principles of Process Performance: Theory of  Constraints How different production process choice  alternatives relate to the critical elements of 
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This note was uploaded on 03/12/2012 for the course SCM 303 taught by Professor Bixbycooper during the Fall '09 term at Michigan State University.

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SCMFinalNotes - Fuck SCM But still gotta study for it...

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