SCPro cheat sheet

Bullwhip effect causes: demand forecast updating, order batching, price promotion, rationing and shortage gaming, and lead-time variation.

Cash-to-cash cycle = days inventory outstanding + days sales outstanding − days payable outstanding; lower values free working capital.

Perfect order rate = on-time % × complete % × damage-free % × documentation-accurate %, since the components multiply.

S&OP monthly sequence: demand review → supply review → reconciliation → executive review → final plan.

Little's Law: WIP = throughput × cycle time, equivalently flow time = inventory ÷ throughput.

SCOR level-1 processes: Plan, Source, Make, Deliver, Return, Enable.

ABC classification by annual usage value (Pareto, roughly 80/20); XYZ classification by coefficient of variation of demand.

Postponement decision rule: apply when demand is uncertain and a common platform can be differentiated late at low incremental cost.

Kraljic matrix segments purchases by profit impact versus supply risk into strategic, leverage, bottleneck, and non-critical quadrants.

TCO components: unit price, freight, duties and tariffs, quality and defect cost, inventory carrying cost, transaction/administration cost, disposal cost.

Three-way match compares purchase order, goods receipt, and supplier invoice; quantity or price variance blocks payment release.

Incoterms 2020 risk transfer: FOB risk passes when goods are on board the vessel; CIF seller pays freight and insurance but risk passes at shipment; DAP seller bears risk to the named place; DDP seller also pays import duty.

Weighted scoring model: total score = Σ (criterion weight × supplier rating), with weights summing to 1.0.

Supplier segmentation: strategic (collaborate, joint development), leverage (competitive bidding), bottleneck (secure supply, dual source), non-critical (simplify, catalog buying).

Contract choice: fixed-price when scope and specification are stable; cost-plus when scope is uncertain or speed is critical.

Make-or-buy criteria: core competency, available capacity, total cost, quality capability, IP risk, and supply market capability.

EOQ = √(2DS ÷ H), where D = annual demand, S = order cost per order, H = holding cost per unit per year.

Reorder point = demand per period × lead time + safety stock.

Safety stock = Z × standard deviation of demand × √lead time, for independent demand with constant lead time.

MRP inputs: master production schedule, bill of materials, inventory records; outputs: planned orders, order releases, reschedule notices.

OEE = availability × performance × quality.

Takt time = available production time ÷ customer demand rate.

Inventory turns = COGS ÷ average inventory value; days of supply = 365 ÷ inventory turns.

Little's Law in production: cycle time = WIP ÷ throughput rate.

Theory of constraints sequence: identify the constraint → exploit it → subordinate everything else → elevate it → repeat.

Landed cost = purchase price + freight + insurance + duty and tariff + handling + fees.

OTIF = orders delivered on time and in full ÷ total orders delivered.

Mode trade-off: air is fast with high cost and low volume; ocean is slow with low unit cost; rail suits bulk long haul; truck offers flexible door-to-door service.

TL versus LTL rule: ship truckload when volume fills or nearly fills a trailer; consolidate LTL when individual shipments are small.

Cross-docking removes storage and handling time but requires tight synchronization of inbound and outbound flows.

Hub-and-spoke networks gain consolidation economies but add handling and transit time versus direct shipping.

Warehouse slotting rule: place high-velocity A items in the most accessible locations nearest to the shipping dock.

Order cycle time = order receipt → order processing → picking and packing → transit → customer delivery.

Milk run: one vehicle serves multiple stops on a fixed route and schedule to consolidate small loads into economical shipments.