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As explained in previous weeks, $(1)$ the goals of SCM are about achieving process integration, low costs, and high levels of quality and responsiveness through the pipeline. Customer expectations require companies to adopt strategic initiatives emphasizing speed, innovation, collaboration, quality, and efficiency.

Forecasts are an essential part of this supply chain decision$-$making process as they estimate future demand." Additionally, the numbers form the basis for planning and informed business decisions." $(2)$ In an environment that encourages collaboration between buyer and supplier, the challenge of planning operations to meet delivery deadlines and avoid waste becomes increasingly complex. $(3)$ The problem is compounded in an integrated supply chain where a missed due date or lack of inventory impacts downstream processes, amplifying the bullwhip effect and negatively impacting the entire supply chain.

$(4)$ Companies rely on inventory levels to balance supply and demand and reduce uncertainty in the supply chain. A mismatch between supply and demand could result in excessive inventory or stock$-$outs. Inventory can be one of a company's most expensive assets. For some organizations, it can represent more than $10$ percent of total sales or assets.. Although manufacturing companies typically have more inventory than service companies, effective inventory management is still important for both organizations. $(5)$ Therefore, it needs to be managed carefully. The right amount of inventory supports business operations, but too little can negatively impact customer service. Conversely, overstocking not only leads to unnecessary storage costs but also masks production problems and other deficiencies within a company."

$(6)$ "This chapter discussed the critical role of inventory and various inventory management techniques commonly used to balance demand and supply." The classic ABC inventory classification, along with the ABC inventory matrix, was used as a means of monitoring whether a company is making the right inventory decisions were illustrated. The inventory models for order size and period were demonstrated using numerous examples.$\text{'}$

APPLY IT: For the first time this semester, I have composed for an APPLY IT exercise. Here is the challenge for this week: Please review my comments about forecasting, planning and inventory management. Then, the use information from this week's airplane exercise to illustrate the meaning of the statement. You are allowed to use a statement more than once, as long as there is a different illustration from the exercise.

For example: $(1)$ the goals of SCM are about achieving process integration, low costs, and high levels of quality and responsiveness through the pipeline. Illustration: DPMO Calculation $($already completed$).$ Explain how it illustrates $.....$

$(2)$ Using the same Statement $(1)$ the goals of SCM are about achieving process integration, low costs, and high levels of quality and responsiveness through the pipeline. Illustration: What was the number of planes able to fly upon initial inspection. Budget of $72$ Billion $--$if you were the customer, my expectation all would be flying?

The Expectations for this exercise are: $(1)$ utilize the calculations from Part $2\mathrm{.}0$ APPLY Lecture PPT $($including "Your Turn"; $(2)$ You are not to use the same illustration for two different statements; $(3)$ do not merely list numbers as an illustration or example and $(4)$ the illustration should be comprehensive $($of suitable length$)$ to show your knowledge of the material and exercise. I do not believe several sentences can provide evidence that the DPMO that you calculated was good or what caused the number. Remember how it was estimated.

I am requiring a minimum of four illustrations from the Airplane Exercise $($each worth $10$ points$).$

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