Test your basic knowledge |

Supply And Logistics

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. 1) item number 2) item description 3) Lead time to order and receive the item from a supplier or to produce it internally 4) Preferred order quantity (lot size) 5) Safety stock quantity 6) Other info (cost/process descriptions) 7) Quantity on hand 8)






2. Model used to determine the order size for a one-time purchase






3. Demand that is created by customers






4. inventory is constantly monitored to decide when a replenishement order needs to be placed






5. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans






6. How much should be ordered and when?






7. Forecasting models that compute forecasts using historical data arranged in the order of occurrence






8. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain






9. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.






10. Average size of forecast errors - irrespective of their directions.






11. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held






12. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan






13. An event that occurs when no inventory is available






14. Unit selling price - unit cost






15. items in transit from ont location to another






16. Specification of the amount of risk of incurring a stockout that a firm is willing to incur






17. Production rate is changed in each period to match the amount of expected demand






18. The entire time period covered by the MPS






19. Management systems used when the demand for an item is derived from the demand for some other item






20. An estimate of the capacity needed at work centers






21. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand






22. 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






23. Order costs are associated with replenishing inventories - while setup costs are associated with producing inventory internally. Both are often considered "fixed" regardless of batch size - although this is not strictly true.






24. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies






25. Built upon estimates and opinions of people - e.g. experts. Attempt to incorporate factors of demand that are difficult to capture in a purely statistical model.






26. The portion of average inventory determined as order quantity divided by two






27. inventory management systems used when the demand for an item is beyond the control of the organization






28. Minimum level of inventory that triggers the need to order more






29. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers






30. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)






31. Proactive approach in which managers attempt to influence either the pattern or consistency of demand






32. 1) Identify users and decision-making processes that the forecast will support. Consider time horizon - level of detail - accuracy vs. cost - fit with existing business processes 2) Identify likely sources of good data 3) Select forecasting techni






33. Decision process in which managers predict demand and make operational plans accordingly






34. items that are ready for sale to customers






35. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes






36. Comparison of production needs to actual capacity






37. 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






38. Items bought from suppliers to use in the production of a product






39. Process that adjusts prices as demand for a service occurs (or does not occur)






40. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known






41. 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)






42. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)






43. Difference between a forecast and the actual demand






44. inconsistencies in the plan causes by changes to the MPS






45. Replan each period (month or quarter) - for a given number of periods into the future






46. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods






47. The amount that is planned to arrive at the beginning of a period






48. Technique that seeks inputs from people who are in close contact with customers and products






49. Supply of items held by a firm to meet demand






50. The probability of meeting all demand for an item = cost of a unit stockout / (cost of a unit stockout + cost of being overstocked by one unit)