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Which of the following items helps to align the assumptions and expectations of executive sponsors, stakeholders, and supply chain transformation team members?
A smartwatch seller wants to determine how many units of a new model release are required to be held as finished goods and how many units should be held as work-in-process (WIP) stock
leading to the new model launch date. Which of the following analyses will allow the manufacturer to calculate the required stock levels to avoid backlogs, inventory losses, and other issues?
What is the frozen time fence in the process of scheduling and managing the execution of activities required to create a product?
According to the ASCM CTSC Exam Content Manual, the frozen time fence is defined as ''a point in time within the planning horizon of the master scheduling process that marks a boundary inside of which no changes can be made to the schedule without senior management approval'' (p. 18). The frozen time fence helps to protect the production plan from disruptions and uncertainties, and to ensure the stability and reliability of the supply chain. The frozen time fence is usually set at the cumulative lead time of the product, or the time required to procure or produce the product from scratch. The other options are not related to the concept of the frozen time fence.
Which of the following formulas correctly calculates the days of supply for raw materials?
According to the ASCM CTSC Exam Content Manual, the formula for raw material inventory days of supply is the value of raw materials inventory divided by the ''value of transfers divided by 365 days'' 1. The value of transfers is the same as the cost of goods sold, which is the total cost of producing and delivering the prod-ucts to the customers 2. Therefore, the formula can be simplified as the value of raw materials divided by the cost of goods sold per day, which is the same as option A. The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.
A consumer electronics manufacturer has undertaken a transformation of its supply network design. In order to increase customer service, they acquired more dedicated space on a cargo airline to
reduce its use of ocean transport. The manufacturer is expecting which metric shifts due to this change?
air transport is generally more expensive than ocean transport, but also faster and more reliable1. Therefore, by acquiring more dedicated space on a cargo airline, the manufacturer can expect its transportation costs to increase, but also reduce its need for expedited delivery upgrades, which are usually costly and inefficient2. The other options are not likely to occur, as air transport does not necessarily increase the network path touches or decrease the demand volume growth.
