Variables and Questionnaire

Group No. 8 Topic: Inventory Management, demand forecasting & order fulfillment.

Scale
1 Strongly Disagree 2 Disagree 3 Neither disagree nor agree 4 Agree
Strongly Agree

1. Forecasting for Items with Intermittent Demand

(F. R. JOHNSTON and J. E. BOYLAN)

Forecast performance Average inter-order interval Forecast horizon (time lead) Order size Demand variability

Questions 1. Unexpected orders cause rapid slow down in forecast performance?

1 2 3 4 5

2. If the interval between the two orders is comparatively large, it will improve the forecasting of demand?
1 2 3 4 5

3. Order size directly affects forecasting pattern and planning?

1 2 3 4 5

4. Time interval between two orders is an important predictor of the demand?

1 2 3 4 5

5. Fluctuations in demand restrict more customization for differing needs of customers?

1 2 3 4 5

2. Selecting the best periodic inventory control and demand forecasting methods for low demand items
(B Sani and BG Kingsman) o o o Annual inventory cost Shortage penalty cost Inventory holding cost Ordering cost Customer service level

Variation in demand level

Questions: 1. Service level is more improved when there is large stock of inventory?
1 2 3 4 5

2. If the vendor is in short of a particular item, it would affect the demand in customer market?
1 2 3 4 5

3. Out of stock items contribute to forecasting demand more precisely?

4. Low and intermediate demand levels tend to reduce inventory cost?

5. Variation in demand increases inventory holding cost?

1 2 3 4 5

3. Integrated versus non-integrated inventory management

(Nasim Nahavandi and Farzad Haghighi Rad) o Independent business units o Integrated inventory system Demand rate Production rate Inventory holding cost Time horizon Economic production quantity

Questions: 1. If organizational structure would have been changed to independent business units, how it would affect the market demand of a particular product?
1 2 3 4 5

2. Economic production quantity can be correctly estimated by forecasting methods?

3. Inventory holding cost is sharply reduced when the production rate is high?
1 2 3 4 5

4. Integrated inventory system can be a helpful approach for reducing costs?

1 2 3 4 5

5. Separate business units along with independent inventory management can generate more returns in terms of profits?
1 2 3 4 5

4. The Order fulfillment process

(Keely L. Croxton) o Strategic order fulfillment process o Operational order fulfillment process o Process interfaces Order to cash cycle time Order fill rate Oder completeness

Questions: 1. Order fulfillment is a function of logistics or it is a process of supply chain in the organization?
1 2 3 4 5

2. Is the cost most important factor in fast delivery of products?

1 2 3 4 5

3. Multiple sets of customer requirements and specifications can lead to increase cost and lead time for fulfilling the orders?
1 2 3 4 5

4. Efficient supply chain design can increase cost and inventory levels?
1 2 3 4 5

5. The application of automation and technology is beneficial in order fulfillment process?

1 2 3 4 5

6. Once the orders are received, order flow is critical to be planned?

1 2 3 4 5

5. Networked inventory management information systems: materializing supply chain management

(Martin Verwijmeren, Piet van der Vlist and Karel van Donselaar, 1996) Increasing customer requirements Need for networked organizations Opportunity of networked inventory management

o Statistical inventory control (SIC) o Base stock control (BSC) o Materials and distribution requirements planning (MRP/DRP) o Line requirements planning (LRP) Questions: 1. Is networked inventory a good way to manage differentiated needs of customers?
1 2 3 4 5

2. If the forecasted demand meets some errors, it will make information flow weaker throughout the supply chain?
1 2 3 4 5

3. Material and distribution requirements are dependent on integration of information and inventory?
1 2 3 4 5

4. MRP system is helpful in co-ordination of stock points in networked inventory management?

1 2 3 4 5

5. Uncertainty can be lowered down and supply chain can be more efficient if an integrated decision system is applied?
1 2 3 4 5

6. Networked inventory management system can provide greater product variety and more customer satisfaction?
1 2 3 4 5

Questions taken from book

Operations Management (Lee J. Krajewski, Ritzman, Malhotra)

Inventory Management Economic order quantity Lot size Annual holding cost Annual ordering cost

Questions: 1. Inventory holding cost goes up when ordering and setup cost is decreased down?
1 2 3 4 5

2. Demand rate in customer market can affects economic order quantity?

1 2 3 4 5

3. When the supply is reduced down, ordering cost is also decreased and inventory turnover is increased?

Forecasting Time series Demand rate Forecasting error

Questions: 1. Forecasting error tends to be larger when demand rate is variable?

2. When historical data are available to forecast a demand pattern, it will lead to more forecasting errors?
1 2 3 4 5

3. The best way to improve forecast accuracy is to focus on reducing forecast error?
1 2 3 4 5