3.4.5 Making operational decisions to improve performance: managing inventory and supply chains

• What are operational decisions in business management?

  Day-to-day decisions
• What does EOQ stand for in inventory management?

  Economic Order Quantity
• What are the benefits of effective operational decision-making?

  Cost savings and productivity
• Order the techniques for managing inventory levels:

  1️⃣ Economic Order Quantity (EOQ)

  2️⃣ Just-in-Time (JIT)

  3️⃣ ABC Analysis
• Just-in-Time relies heavily on suppliers to avoid disruptions.


  True
• Effective supply chain management reduces costs through streamlined processes
• The planning stage in supply chain management develops a strategic approach to meet customer demand
• What are operational decisions made to manage in a business?

  Operations and production
• What are the three key types of inventory?

  Raw materials, WIP, finished goods
• The Economic Order Quantity (EOQ) method assumes constant demand.

  True
• Effective coordination between the stages of supply chain management reduces costs and improves efficiency.


  True
• The use of ERP and SCM systems improves coordination and information sharing
• Strategic partnerships with key suppliers improve communication and ensure reliable supply
• Lean manufacturing focuses on reducing waste
• Optimizing the supply chain can significantly improve customer satisfaction
• Order the key types of inventory based on their role in the production process.

  1️⃣ Raw materials

  2️⃣ Work-in-progress

  3️⃣ Finished goods
• ABC Analysis categorizes inventory into high-value, medium-value, and low-value items.


  True
• What is a major risk associated with Just-in-Time (JIT)?

  High reliance on suppliers
• Which inventory management method prioritizes high-value items for efficient management?

  ABC Analysis
• What are the benefits of effective supply chain management?

  Reduced costs, increased efficiency, improved customer satisfaction
• Sourcing in supply chain management involves selecting reliable suppliers
• The key stages of supply chain management begin with planning
• The consistency and dependability of suppliers is known as reliability
• The use of technology like ERP systems improves coordination and information
• Effective management of supply chain factors is crucial for achieving operational performance goals.


  True
• Technology integration in supply chains enhances transparency and improves forecasting
• Zara's supply chain is known for being highly responsive
• Zara uses real-time sales data for data-driven demand forecasting
• Kaizen is a key technique in lean manufacturing that focuses on continuous improvement
• Match the lean technique with its description:

  Kaizen ↔️ Continuous improvement

  Kanban ↔️ Pull-based system

  Poka-yoke ↔️ Mistake-proofing
• How does automation enhance supply chain efficiency?

  Increases productivity
• What are the benefits of reducing inventory holding costs in supply chain management?

  Lower expenses
• What are raw materials in the context of inventory management?

  Materials used in production
• Effective inventory management improves cash flow for the business.

  True
• Just-in-Time (JIT) reduces reliance on suppliers.

  False
• Just-in-Time (JIT) can reduce waste in production.


  True
• Effective inventory management reduces holding costs.


  True
• ABC Analysis categorizes inventory based on its value.


  True
• Match the type of inventory with its description:

  Raw materials ↔️ Materials used in production

  Work-in-progress ↔️ Goods in the production process

  Finished goods ↔️ Ready for sale
• ABC Analysis categorizes inventory into A, B, and C based on value