MIDTERM 2 EXAM REVIEW- MKT 431- NOTE- THIS IS SUBJECT TO CHANGE.
THROUGH TOPIC 13 WILL NOT CHANGE
250 points total – Exam will be long for many of you.
~ Short answer/short essay; several sentences, bullets, explanations and applications
Very similar in layout to last time Plan on around 7-8 multi-part essay-type questions.
WRITE YOUR NAME ON THE BACK OF THE EXAM ONLY
PLAIN calculator is allowed—no smartphones, dictionaries, etc., no notes or formula sheets
NO HATS!
I will move some people who have 4 at a table
No leaving room once you receive a copy of exam
This hit the high points--- anything we have covered or that has been assigned is fair game.
Exam will cover the book, readings, class discussions and videos.
Study tips:
I recommend that you go through the topics (Chapters on-line) along with the PPT. Review the types of in-class exercise that we did. Look at the summary points at the end of the PPT to help understand the key points. Be able to answer discussion questions that we had in class and that are in the PPT, and the end of topic discussion and practice questions for each topic on my educator.com, whether we discussed them or not. Review the exam review sheet to verify that you have not missed anything major. The exam will focus on applying ideas that we have learned, so be sure to understand, not just memorize.
Materials from prior exam
Ideas related to the strategic profit model, ROA, how logistics decisions affect B/S and I/S—this is also in Topic 8
The profit leverage affect
What it means
How to calculate it
Lean principles in general
8- The Basics of Inventory Management
The importance of inventory and having the right amount of inventory
Inventory & firm performance
Holding Cost: sum of financial opportunity costs and physical costs.
Ordering cost: (set up cost in manufacturing) are the costs of placing an order
Key metrics:
Inventory turnover: the number of times inventory is depleted and replenishes in a year. Bigger the number implies less inventory is needed to generate a given sales volume
Dwell time: measures how efficiently inventory moves through the supple chain. Higher ratios indicate unnecessary delays.
In-stock Rate: measures the frequency of in-stock occurrences. (percent of order cycles without any stock out occurrences
Fill rate: measures the extent to which customers demand was satisfied without any stock outs.
Linking inventory changes to the strategic profit model (ROA impact): inventory performance plays a role in improving customer service and drives financial performance.
EOQ- Understand what it calculates, the idea that it is robust—no calculations here
Caluculates the right amount of inventory by minimizing the combined costs of ordering holding inventory. (economic order quantity model) also called the saw-tooth model. It shows you start out with a given level of inventory and sell it off at a steady rate, just when inventory runs out another replenishment order is placed and received and the cycle starts over. Helps show the tradeoff between holding and ordering costs. Demand is constant and known and lead time is zero making stockout costs irrelevant.
Evaluating inventory performance- understand the concept of the square root law of cycle stocks & its implications--- no complex calculations
MRP- Skip it
The chip game (Day before Spring break). What did we learn about dependent demand situations
10- Warehousing and DC management
Roles & Types of warehouses
Economies provided
Production economies: you can produce in large lots storing product until customers want to use it.
Transportation Economies: You can ship in full truckloads. Inbound shipments are broken down and stored at the warehouse; outbound shipments are consolidated and shipped at the warehouse.
Value-added Services that occur
Mass Customization
Final Assembly
Repair
Various types of warehouses (cross-dock, break-bulk, etc…)
Warehouse: Generic term for a facility where product is stored.
