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






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






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






4. Vendor is responsible for managing the inventory located at a customer's facility






5. The determination of how many additional units are needed






6. Demand that is created by customers






7. Amount paid to suppliers for products that are purchased






8. Comparison of production needs to actual capacity






9. Measure of how well the objective of meeting customer demand is met: usually in terms of # or % of inventory items for which there is no inventory on hand






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






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






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






13. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing






14. File that contains detailed inventory and procurement records






15. Correlation of current demand values with past demand values






16. An estimate of the capacity needed at work centers






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






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






19. 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






20. 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






21. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company

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






23. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle






24. 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.






25. A fixed time period that passes between inventory reviews






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






27. A planning system used to ensure the right quantities of materials are available when needed






28. Demand that depends upon decisions made by internal operations managers






29. The assumption that there is an infinite amount of capacity available






30. The entire time period covered by the MPS






31. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions






32. 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)






33. items that are ready for sale to customers






34. Unit selling price - unit cost






35. 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.






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






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






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






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






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






41. 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






42. A mathematical approach for fitting an equation to a set of data






43. 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






44. items in transit from ont location to another






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






46. Process where each item in inventory is physically counted on a routine schedule






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






48. 1) No quantity discounts 2) No lot size restrictions 3) No partial deliveries 4) No variability 5) Quantity of one product is not dependent on that of another






49. The amount of an item that is planned to be ordered in a period






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