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Test your basic knowledge |
Supply And Logistics
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A method by which supply chain partners periodicaly hsare forecasts - demand palns - and resource plans in order to reduce uncertainty and risk in meeting customer demand
uncertainty period
collaborative planning - forecasting and replenishment (CPFR)
grassroots forecasting (judgement-based)
time bucket
2. inconsistencies in the plan causes by changes to the MPS
the financial impact of inventory
distribution requirements planning (DRP)
time bucket
nervousness
3. Replan each period (month or quarter) - for a given number of periods into the future
collaborative planning - forecasting and replenishment (CPFR)
work in process inventory
rolling planning horizons
continuous review model
4. Ratio between average inventory and the level of sales: = COGS/Average inventory@cost = Net sales/Average inventory@sales price = Unit sales/Average inventory in units
yield management
planned order release
life cycle waste assessment matrix (LCWAM)
inventory turnover
5. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
steps to determine order quantity when quantity discounts are available
continuous review model
square root rule
Outputs of materials requirements planning (MRP)
6. Management systems used when the demand for an item is derived from the demand for some other item
materials requirements planning (MRP)
nervousness
advance planning and scheduling (APS) systems
dependent demand inventory systems
7. 1) Identify the price breaks on offer 2) Calculate the EOQ at each price break - starting with the lowest 3) Evaluate the feasibility of each EOQ value 4) Calculate the TAC for each feasible EOQ and for the minimum quantity required to attain each p
demand planning
Managerial approaches to reducing inventory costs
time bucket
steps to determine order quantity when quantity discounts are available
8. 1) Enhanced teamwork at executive & operating levels 2) Better decisions with less effort and time 3) Better alignment of operational - marketing and financial plans 4) Greater accountability for results 5) Ability to see potential problems sooner
advance planning and scheduling (APS) systems
Soft benefits of S&OP
postponable product
executive judgment (judgement-based)
9. 1) Opportunity cost - including cost of capital 2) Owning/maintaining storage space 3) Taxes 4) Insurance 5) Obsolescence and loss 6) Materials handling - tracking - management
life cycle waste assessment matrix (LCWAM)
the expense components of carrying cost
uncertainty period
rought-cut capacity planning
10. The total amount of an end item that is required
business model
marketing research (judgement-based)
gross requirements
the expense components of carrying cost
11. The amount of an item that is planned to be ordered in a period
planned order release
mixed or hybrid strategy
Global Trade Item Number (GTIN)
load profile
12. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
cycle counting
inventory status file
planning horizon
service level policy
13. Forecasting model model that assigns a different weight to each period's demand according to its importance
autocorrelation
weighted moving average (time-series - statistical)
Soft benefits of S&OP
continuous review model
14. A mathematical approach for fitting an equation to a set of data
regression analysis
master production schedule (MPS)
nervousness
stockout
15. inventory management systems used when the demand for an item is beyond the control of the organization
independent demand inventory systems
product cost
moving average (time-series - statistical)
forecast error
16. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
collaborative planning - forecasting and replenishment (CPFR)
mixed or hybrid strategy
stockout
master production schedule (MPS)
17. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
measures of inventory performance
exponential smoothing (time-series - statistical)
important trends influencing operations management and the emergence of business models
master production schedule (MPS)
18. A period of time when an unknown amount of inventory is on hand
basic questions to answer when planning inventories
uncertainty period
bullwhip effect
planned order release
19. Process where each item in inventory is physically counted on a routine schedule
cycle counting
nervousness
days of supply
reorder point (ROP)
20. 1) Market planning: intro of new products - store openings/closings - promotions - inventory policies - etc. 2) Demand and resource planning: customer demand & shipping requirements are forecasted 3) Execution: orders are placed - delivered - r
collaborative activities in CPFR
shift or step change
cumulative lead time
square root rule
21. Unit selling price - unit cost
order cost
cost of a unit stockout
basic questions to answer when planning inventories
simulation models
22. 1) Produce all units internally by hiring workers in high-demand monts and firing/laying off workers in low-demand months 2) Produce internally the quantity required to meet demand in the lowest-demand month and use overtime production to meet demand
causal models vs. simulation models
options to accomplish the objective of a chase plan
Global Trade Item Number (GTIN)
total acquisition cost (TAC)
23. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
Global Trade Item Number (GTIN)
assumptions underlying the EOQ formulation
impact of raw material and compontent part stockouts
cycle counting
24. The ranking of all items of inventory acording to importance
simulation models
rought-cut capacity planning
ABC analysis
inventory
25. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
Steps of designing a forecasting process
trend
gross requirements
available to promise
26. The amount that is planned to arrive at the beginning of a period
Wastes produced throughout the five product life cycle stages
planned order receipt
fixed order quantity (FOQ)
weighted moving average (time-series - statistical)
27. Sum of all relevant inventory costs incurred each year
judgement-based forecasting
total acquisition cost (TAC)
forecast accuracy
planned order receipt
28. Production rate is changed in each period to match the amount of expected demand
chase strategy (aggregate production strategy)
reorder point (ROP)
smoothing coefficient
square root rule
29. A strategy that includes some elements of level production and some elements of chase production strategies
capacity requirements planning (CRP)
enterprise resource planning (ERP) system
mixed or hybrid strategy
cost of a unit stockout
30. Combined process of forecasting and managing customer demands to create a planned pattern of demand that meets the firm's operations and financial goals (includes demand forecasting and management)
target service level (TSL)
demand planning
collaborative activities in CPFR
forecast error
31. Quantities of each finished product to be completed for each period
inventory turnover
master production schedule (MPS)
level production strategy (aggregate production strategy)
options to accomplish the objective of a chase plan
32. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
two-bin system
work in process inventory
distribution requirements planning (DRP)
stockout (shortage) cost
33. Inventory is both an asset and a cost that impacts profitability. Inventory represents ~30% of a company's assets - and it must be purchased with debt or investment. Keeping inventory low keeps investment/debt low and keeps cash free to be used of o
Advantages of high inventory turnover
master production schedule (MPS)
demand management
the financial impact of inventory
34. 1) Sales volume up 2) Risk of obsolescence or having to make discounts down 3) Holding expenses down 4) Asset investment down 5) Asset productivity up
Advantages of high inventory turnover
lot-for-lot (L4L)
raw materials and components parts
Steps of designing a forecasting process
35. 1) Stockout risk up 2) COGS up because of inability to purchase or produce in quantity 3) Purchasing - ordering & receiving time - effort and cost up
order cost
Disadvantages when inventory turnover is too high
Cost of being overstocked by one unit
ABC analysis
36. The sum of the inventory held across all of the locations in a company
setup cost
ABC analysis
inventory
total system inventory
37. Production processes halted
cycle stock
impact of raw material and compontent part stockouts
uncertainty period
order cost
38. Measurement of how closely the forecast aligns with the observations over time
demand management
transit inventory
forecast accuracy
Managerial approaches to reducing inventory costs
39. inventory that is in the production process
inefficiencies caused by unpredictably fluctuating customer demand
Three components of resource requirements planning
MRO inventory
work in process inventory
40. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
total system inventory
postponable product
level production strategy (aggregate production strategy)
causal models vs. simulation models
41. The part of panned production that is not committed to a customer
single period inventory model
forecast accuracy
causal models vs. simulation models
available to promise
42. A combination of common sense inputs from frontline personnel and a computer simulation process
focused forecasting
historical analogy (judgement-based)
forecast bias / mean forecast error
inventory status file
43. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
steps to determine order quantity when quantity discounts are available
moving average (time-series - statistical)
executive judgment (judgement-based)
vendor-managed inventory (VIM)
44. Demand that is created by customers
independet demand
shift or step change
planned order receipt
periodic review model
45. Model used to determine the order size for a one-time purchase
Delphi method (judgement-based)
advance planning and scheduling (APS) systems
single period inventory model
Global Trade Item Number (GTIN)
46. Unique ID for a part used by a specific company
Delphi method (judgement-based)
collaborative activities in CPFR
part number
lot-for-lot (L4L)
47. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
work in process inventory
forecast bias / mean forecast error
Soft benefits of S&OP
Wastes produced throughout the five product life cycle stages
48. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
demand during lead time
infinite loading
materials requirements planning (MRP)
collaborative activities in CPFR
49. Comparison of production needs to actual capacity
Advantages of high inventory turnover
cycle stock
load profile
transit inventory
50. An order for the exact amount needed
lot-for-lot (L4L)
single period inventory model
yield management
demand planning