What is SCM?

1. Key steps in SCM
2. Which steps represent the TRADITIONAL SCM component? Which step represents the new component?
3. Examples of tasks under each step
4. The four competitive priorities in SCM
5. How does SCM relate to the rest of the business functions?

Forecasting

1. Characteristics of Forecasting
2. Key assumptions used in quantitative forecasting models.
3. Components of Demand
4. How do you classify forecasting methods? Compare and contrast these models/techniques. When are they applicable?
5. Forecasting Error and Bias, what are they? Characteristics of Bias? Be able to identify high/low error, high/low bias, high/low MAD.
6. Why is forecasting important in business and/or your future career?
7. How to build an associative forecasting model? (You don’t need to actually build it but need to understand how to choose factors to input into the model).

Inventory

1. What is inventory?
2. Why do companies need inventory?
3. Pros and cons of high/low inventory level
4. How do you classify the various types of inventory models? What are the model assumptions and applicable cases for each type of inventory model?
5. What is the EOQ? Specifically, what does Q* in EOQ represent?
6. What are the cost categories associated with EOQ?
7. Is it vital to know your exact EOQ or is close good enough? Is EOQ a robust model? Is EOQ a sensitive model?
8. What does it mean if AHC > AOC? AOC > AHC? Should you increase or decrease your Q in each case?

1. Calculation Type of Questions

Forecasting

1. Be able to forecast based on moving average, exponential smoothing, and exponential smoothing with trend models.
2. Be able to recommend the best approach.

Inventory

1. Calculate EOQ, Total Holding Cost, Total Order Cost, Total Purchase Cost, And Total Inventory Cost.
2. Calculate holding cost, total order cost, total purchase cost and total inventory cost for any given Q (not necessary based on the Q found in the EOQ model).
3. Calculate time between orders
4. Calculate Q based on the Newsvendor model.

1. Formulas you should know by heart (these are required but these are NOT provided in the formula sheet).

1. Forecasting Error Calculation
2. Bias Calculation
3. MAD Calculation
4. Standard Deviation of Error

1. Out of Scope (The following will not be on the exam)

Forecasting

1. Calculations related to exponential smoothing with trend and seasonality. You must understand the model conceptually, though, such as the range for seasonal indices.

Inventory

1. Detailed calculation for more advanced inventory models such as (Q,r) and (S,s). You MUST be able to do calculations related to EOQ and Newsvendor model though.