Supply Chain

Question 1

• The management of the flow of goods and services and includes all processes that transform raw materials into final products.
• It involves coordinating all aspects of a complex network of suppliers, manufacturers, distributors, and retailers to improve efficiency, manage resources, and ensure a seamless flow of goods, information, and finances.

Answer 1

Supply Chain
Management

Question 2

• is a mathematical model used in inventory management to determine the optimal number of units a company should order or produce each time, in order to minimize the total cost of inventory.
• It helps balance ordering costs (the cost of placing orders or setting up production) and holding costs (the cost of storing and maintaining inventory).

Answer 2

Economic Order Quantity (EOQ)

Question 3

• is an inventory classification method that helps a clothing brand identify which products or materials are most valuable or important to its operations.
• It follows the Pareto Principle (80/20 rule) — meaning a small percentage of items usually account for a large percentage of total inventory value.
  **Pareto Principle (80/20 Rule) **
• The Pareto Principle, also known as the 80/20 Rule, is the idea that roughly 80% of the results come from 20% of the causes.

Answer 3

ABC Analysis (Always Better Control)

Question 4

is a production method whose focus is on reducing or eliminating the need to hold inventories of raw materials or components. A production process is said to be just-in-time when it uses the raw materials to make the good or service after the product has been ordered.

Answer 4

JUST IN TIME (JIT)