Exam 13: Determining the Optimal Level of Product Availability

Postponement is valuable for a firm that

The level of product availability,also referred to as the ________,is one of the primary measures of a supply chain's responsiveness.

Whether the optimal level of product availability is high or low depends on where a particular company believes they can

A managerial lever to increase profitability is to decrease the salvage value of each unit.

________ is the set of actions a supply chain takes to reduce the replenishment lead time.

A company with multiple products,that chooses to delay product differentiation until closer to the point of sale,is using

In product-based tailored sourcing

The costs of overstocking and understocking have a direct impact on both the optimal cycle service level and profitability.

There is a cost associated with postponement because the production cost using postponement is typically lower than the production cost without it.

An increase in forecast accuracy increases both the overstocked and understocked quantity and decreases a firm's profits.

In product-based tailored sourcing,low-volume products with uncertain demand are obtained from a flexible source,while high-volume products with less demand uncertainty are obtained from an efficient source.

The margin lost from current as well as future sales if the customer does not return should be included in

The cost of underselling is a key factor that influences the optimal level of product availability.

The level of product availability,also referred to as the ________,is one of the primary measures of a supply chain's responsiveness.

Explain how tailored postponement can improve profitability.

There is a cost associated with postponement because the production cost using postponement is typically

Supply chain managers are able to

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that

A company that uses a more expensive short lead time supplier as a backup for a low cost,long lead time supplier is using

Which of the following is not a situation involving the trade-off between the cost of overstocking and the cost of understocking?