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






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






3. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales






4. Demand that is created by customers






5. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization






6. Cycle stocks - safety stocks - managing locations - implementing inventory models






7. An event that occurs when no inventory is available






8. An order for an amount that covers a fixed period of time






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






10. Lot size is the "batch size" of an order - e.g. you must order in increments of fifty - you should order the increment with the lowest TAC.






11. Correlation of current demand values with past demand values






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






13. 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






14. Measurement of how closely the forecast aligns with the observations over time






15. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)






16. An estimate of the capacity needed at work centers






17. Administrative expenses and the expenses of rearranging a work center to produce an item






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






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






20. The part of panned production that is not committed to a customer






21. The entire time period covered by the MPS






22. A one-time change in demand - susually due to some external influence on demand






23. Production processes halted






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






25. 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






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






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






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






29. The sum of the inventory held across all of the locations in a company






30. An order for the same amount each time






31. Expenses incurred due to the fact that inventory is held






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






33. An estimation of the availability of the critical resources needed to support the MPS






34. A parameter indicating the weight given to the most recent demand






35. A combination of common sense inputs from frontline personnel and a computer simulation process






36. Forecasting techniques that use input from high-level experienced managers






37. 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






38. 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)






39. 1) Inventory holding cost 2) Regular production cost 3) Overtime cost 4) Hiring cost 5) Firing/layoff cost 6) Backorder/lost sales cost 7) Subcontracting cost






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






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






42. Sum of all relevant inventory costs incurred each year






43. 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






44. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain






45. 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






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






47. A period of time when an unknown amount of inventory is on hand






48. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures






49. The ranking of all items of inventory acording to importance






50. An illustration of the pattern of ordering and inventory levels