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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. Technique that seeks inputs from people who are in close contact with customers and products
rolling planning horizons
planning horizon
grassroots forecasting (judgement-based)
Cost of being overstocked by one unit
2. A one-time change in demand - susually due to some external influence on demand
shift or step change
rolling planning horizons
quantitative ABC analysis procedure
transit inventory
3. items in transit from ont location to another
rought-cut capacity planning
advance planning and scheduling (APS) systems
transit inventory
lot-for-lot (L4L)
4. File that contains detailed inventory and procurement records
sales and operations planning (S&OP)
inventory status file
demand management tactics
carrying (holding cost)
5. Process where each item in inventory is physically counted on a routine schedule
net requriements
infinite loading
cycle counting
measures of inventory performance
6. Combination of the choice of which customer segment the firm will target with a specific value proposition and the supply chain capabilities used to deliver it
aggregate production plan
business model
assumptions underlying the EOQ formulation
sales and operations planning (S&OP)
7. Demand that is created by customers
forecast error
service level
independet demand
steps to determine order quantity when quantity discounts are available
8. An order for an amount that covers a fixed period of time
demand management
Three components of resource requirements planning
aggregate production plan
periodic order quantity (POQ)
9. The individual time period for planning
level production strategy (aggregate production strategy)
time bucket
uncertainty period
quantitative ABC analysis procedure
10. inventory is constantly monitored to decide when a replenishement order needs to be placed
continuous review model
requirements explosion
demand management
yield management
11. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
transit inventory
collaborative planning - forecasting and replenishment (CPFR)
dependent demand
moving average (time-series - statistical)
12. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
distribution requirements planning (DRP)
causal models vs. simulation models
uncertainty period
cycle counting
13. An estimate of the capacity needed at work centers
fixed order quantity (FOQ)
capacity requirements planning (CRP)
periodic review model
cost of a unit stockout
14. Vendor is responsible for managing the inventory located at a customer's facility
vendor-managed inventory (VIM)
weighted moving average (time-series - statistical)
mixed or hybrid strategy
reorder point (ROP)
15. Maintenance - repair and operating supplies
MRO inventory
Pareto's law
uncertainty period
Soft benefits of S&OP
16. Computing power will double every 18 months while computing cost will decrease by half
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17. Items bought from suppliers to use in the production of a product
Managerial approaches to reducing inventory costs
executive judgment (judgement-based)
raw materials and components parts
steps to determine order quantity when quantity discounts are available
18. Replan each period (month or quarter) - for a given number of periods into the future
part number
rolling planning horizons
cycle counting
advance planning and scheduling (APS) systems
19. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
order interval
judgement-based forecasting
life cycle waste assessment matrix (LCWAM)
service level policy
20. The longest lead-time path in the BOM
inventory status file
cumulative lead time
part number
ways to improve demand planning
21. 1) Determine each item's annual useage/sales (in units and/or value) 2) Determine % of total useage/sales by each item 3) Rank items from highest to lowest percentage 4) Classify the items into ABC categories
executive judgment (judgement-based)
infinite loading
quantitative ABC analysis procedure
bill of materials (BOM)
22. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
the expense components of carrying cost
stockout
measures of inventory performance
regression analysis
23. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
enterprise resource planning (ERP) system
sales and operations planning (S&OP)
Wastes produced throughout the five product life cycle stages
forecast bias / mean forecast error
24. 1) Influence the timing or quantity of demand through pricing changes - promotions - or sales incentives 2) Manage the timing of order fulfillment 3) Substitute by encouraging customers to shift their orders from one product to another - or from o
Hard benefits of S&OP
yield management
demand management tactics
items included in the inventory record
25. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
time series and analysis methods
focused forecasting
Outputs of materials requirements planning (MRP)
moving average (time-series - statistical)
26. Administrative expenses and the expenses of rearranging a work center to produce an item
rolling planning horizons
Delphi method (judgement-based)
order interval
setup cost
27. Systems that integrate materials and capacity planning into one system
demand management
advance planning and scheduling (APS) systems
cumulative lead time
postponable product
28. inventory classification - info systems - accurate records
stockout (shortage) cost
load profile
distribution requirements planning (DRP)
Techniques used to manage inventory
29. 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)
Three components of resource requirements planning
work in process inventory
historical analogy (judgement-based)
demand planning
30. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
materials requirements planning (MRP)
measures of inventory performance
capacity requirements planning (CRP)
postponable product
31. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
historical analogy (judgement-based)
Outputs of materials requirements planning (MRP)
demand management tactics
basic questions to answer when planning inventories
32. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
net requriements
Moore's law
stockout (shortage) cost
33. Cycle stocks - safety stocks - managing locations - implementing inventory models
Wastes produced throughout the five product life cycle stages
independet demand
Managerial approaches to reducing inventory costs
business model
34. Software that consolidates all of the business planning systems and data throughout an organization
days of supply
Managerial approaches to reducing inventory costs
simulation models
enterprise resource planning (ERP) system
35. A period of time when an unknown amount of inventory is on hand
lot-for-lot (L4L)
economic order quantity (EOQ)
inventory turnover
uncertainty period
36. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
cumulative lead time
demand during lead time
collaborative planning - forecasting and replenishment (CPFR)
important trends influencing operations management and the emergence of business models
37. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
single period inventory model
MRO inventory
economic order quantity (EOQ)
collaborative activities in CPFR
38. Unit cost + disposal cost - salvage value
measures of inventory performance
the roles of inventory
Cost of being overstocked by one unit
uncertainty period
39. Management systems used when the demand for an item is derived from the demand for some other item
raw materials and components parts
demand forecasting
dependent demand inventory systems
collaborative planning - forecasting and replenishment (CPFR)
40. An order for the exact amount needed
bullwhip effect
vendor-managed inventory (VIM)
cycle counting
lot-for-lot (L4L)
41. Decision process in which managers predict demand and make operational plans accordingly
buffer (safety) stock
collaborative activities in CPFR
demand forecasting
Outputs of materials requirements planning (MRP)
42. An illustration of the pattern of ordering and inventory levels
saw-tooth diagram
inventory turnover
stockout
life cycle analysis
43. 1) Improved forecast accuracy 2) Higher customer service with lower finished goods inventory levels due to better forecasts and coordination fo supply with demand 3) More stable supply rates -> Higher productivity for purchasing - suppliers and oper
Hard benefits of S&OP
carrying (holding cost)
inventory turnover
cumulative lead time
44. 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
planned order release
carrying (holding cost)
time series and analysis methods
45. Demand that depends upon decisions made by internal operations managers
moving average (time-series - statistical)
dependent demand
Steps of designing a forecasting process
Three components of resource requirements planning
46. The amount that is planned to arrive at the beginning of a period
MRO inventory
planned order receipt
Outputs of materials requirements planning (MRP)
demand during lead time
47. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
rought-cut capacity planning
exponential smoothing (time-series - statistical)
the financial impact of inventory
types of costs that must be identified and quantified in aggregate planning
48. 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
infinite loading
inventory turnover
Delphi method (judgement-based)
Steps of designing a forecasting process
49. 1) Extra resources expand and contract capacity to meet varying demand 2) Backlogging of certain orders to smooth out demand fluctuations 3) Customer dissatisfaction with inability to meet all demands 4) Buffering the system with safety stocks - saf
planned order receipt
assumptions underlying the EOQ formulation
square root rule
inefficiencies caused by unpredictably fluctuating customer demand
50. Measurement of how closely the forecast aligns with the observations over time
weighted moving average (time-series - statistical)
master production schedule (MPS)
forecast accuracy
level production strategy (aggregate production strategy)