Part 1 Exam
1.) Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements. The fundamental difference in the two models is timing. Anticipatory model has been the traditional business practice, which was mainly forecast driven. Since information about purchasing behavior was not available, and the channel partners were collaborating loosely, businesses were driven by forecasts. The forecasts used by the manufacturers, wholesales, distributors, and retailers were often different that led to a lot of excess inventory. All the work was performed in anticipation of future projections, so the likelihood of misgauging customer requirements …show more content…
4.) The philosophy of a JIT is to carry out activities in a time-phased manner so that the purchase materials arrive at the manufacturing point just at the time they are required for the transformation. It is not just restricted to the internal operations of the company but also involves the suppliers. Reliable logistics performance is absolutely crucial to eliminate or at least reduce the need for buffer stocks of material. This can be achieved by close cooperation between the manufacturer’s purchasing organization and the suppliers.
5.) The price of products and labor are always inflating. A make to order strategy will see costs reduced as there is no wasted product. Casual employees can also be hired to only work when there is work to do.
6.) Data and process model standards developed for collaboration between suppliers and an enterprise with proscribed methods for planning forecasting and replenishment The Voluntary Inter-Industry Commerce Standards committee, a group dedicated to the adoption of bar-coding and EDI in the department store/mass merchandise industries, has established CPFR standards for the consumer goods industry that are published by the Uniform