Scm 300 Module 2 Asu Davila Already Passed

Surplus Inventory {Ans: Protects against uncertainty in demand, lead time, supply etc.. Not intended to be used; cushion or buffer.}Pros for High Inventory/Cons for Low Inventory {Ans: -Customer service levels -Costs to order Inventory (purchasing costs) -Cost to Purchase -Transportation: Ease? Cost?}Market Inventory {Ans: Inventory readily available on the shelf.}Managing Costs/Economies of Scale {Ans: Quantity Discounts could offset other inventory related costs. Manufacturing (some items can be made in batches which makes build to order not economical)}Types of Risk {Ans: -Loss, damage, theft, breakdowns -HR -Fluctuating Demand (Electricity) -Market Changes (innovation, growth) -Environmental, political, criminal...}Purchasing Process {Ans: 1) Requisition 2) Supplier Selection 3) Place Order 4) Track Order 5) Receive Order}