CSCA cheat sheet

Bullwhip effect: order variability amplifies upstream; causes include demand forecast updating, order batching, price fluctuation, rationing/shortage gaming; remedies include EDI/CPFR, everyday low pricing, vendor-managed inventory.

SCOR model processes: Plan, Source, Make, Deliver, Return, Enable; performance attributes: reliability, responsiveness, agility, costs, asset management.

Cash-to-cash cycle = days inventory outstanding + days sales outstanding − days payables outstanding; lower is better for working capital.

Postponement (delayed differentiation): hold generic inventory and add variety late to cut safety stock while maintaining responsiveness.

Make-to-stock vs make-to-order vs assemble-to-order vs engineer-to-order: decoupling point moves upstream as customization increases.

Total landed cost = unit price + freight + duties/tariffs + insurance + handling + inventory carrying + quality/risk costs; use for supplier and sourcing decisions.

Inventory turnover = cost of goods sold / average inventory value; fill rate = units shipped / units ordered; perfect order rate = orders delivered complete, on time, damage-free, with correct documentation.

Triple-A supply chain (Lee): agility, adaptability, alignment of partner incentives; alignment tools include shared risk/reward contracts and information transparency.

Incoterms 2020 risk transfer: EXW at seller's premises; FCA when goods loaded on buyer's carrier; FOB when goods on board vessel; CIF/CFR when goods on board; DAP at named destination ready for unloading; DDP after import clearance and duties paid.

Incoterms 2020 changes: DAT renamed DPU (any place, not just terminal); CIP requires Institute Cargo Clauses (A) all-risk insurance; FCA allows on-board bill of lading instruction.

Economic order quantity EOQ = sqrt(2DS/H), where D = annual demand, S = order cost, H = annual holding cost per unit; total cost minimized when ordering cost equals holding cost.

Reasonable procurement process: need identification → specification → supplier evaluation and selection → negotiation/contract → purchase order → receipt and inspection → invoice matching (three-way match: PO, receipt, invoice) → payment.

Kraljic matrix: leverage (high spend, low risk) - competitive bidding; strategic (high spend, high risk) - partnership; bottleneck (low spend, high risk) - secure supply/dual source; non-critical (low spend, low risk) - simplify.

Freight terms: FTL vs LTL; LTL uses freight class/density and may incur accessorials (liftgate, detention, reweigh); carrier selection weighs transit time, cost, damage rate, and service.

Warehouse metrics: inventory accuracy = correct counts / total counts; dock-to-stock cycle time; order fill rate; cube utilization; pick rate per labor hour.

Customs valuation generally uses transaction value (price actually paid or payable) plus adjustments such as assists, royalties, and selling commissions; transfer pricing must reflect arm's-length principle.

Forecast error metrics: MAD = Σ|actual − forecast| / n; MAPE = average of |error|/actual; bias = Σ(forecast − actual)/n; RMSE penalizes large errors more than MAD.

Moving average of n periods smooths noise but lags trends; exponential smoothing F(t+1) = α·A(t) + (1−α)·F(t); higher α reacts faster to recent demand.

Seasonal decomposition: forecast = trend × seasonal index; seasonal index = average demand in period / overall average demand.

Safety stock = z × σ_d × sqrt(L) for demand variability during lead time L; reorder point = average demand during lead time + safety stock.

MRP inputs: master production schedule, bill of materials, inventory records; outputs: planned orders, order releases, rescheduling notices; net requirement = gross requirement − on-hand − scheduled receipts + safety stock.

Capacity planning: rough-cut capacity planning checks key work centers against MPS; capacity requirements planning (CRP) checks detailed MRP loads; load = setup time + run time × quantity.

ABC classification by annual dollar volume: A items ~ top 70-80% of value, tight control; B moderate; C low value, simple rules; XYZ classification by demand variability.

S&OP monthly cycle: demand review → supply review → financial reconciliation → executive consensus plan; balances demand and supply over a rolling 18-24 month horizon.

Seven wastes (TIMWOOD): Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects; overproduction is often called the worst waste because it hides others.

Six Sigma DMAIC: Define, Measure, Analyze, Improve, Control; DMADV/DFSS used for designing new processes; sigma level = (USL − LSL)/(2σ) when centered.

Process capability: Cp = (USL − LSL)/(6σ); Cpk = min[(USL − μ), (μ − LSL)]/(3σ); Cpk < 1 means process not capable; Cpk ≥ 1.33 commonly required.

Lean tools: 5S (sort, set in order, shine, standardize, sustain); kanban pull signals; value stream mapping distinguishes value-added from non-value-added time; takt time = available production time / customer demand.

Single-minute exchange of die (SMED): separate internal and external setup, convert internal to external, streamline remaining steps; target setup under 10 minutes.

Poka-yoke = mistake-proofing (fixtures, sensors, checklists) that prevents or detects errors at the source; jidoka = stop the line when abnormality occurs.

Control charts: X-bar/R for variable data subgroups; p-chart for proportion defective; c-chart for count of defects per unit; assignable-cause signals include points beyond control limits and nonrandom runs.

FMEA: RPN = severity × occurrence × detection; higher RPN prioritized for action; after actions, recompute RPN to verify risk reduction.