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) Short-term forecasts are usually more accurate than long-term forecasts 2) Forecasts of aggregated demand are usually more accurate than forecasts of demand at detailed levels 3) Forecasts developed using multiple information sources are usually






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






3. 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






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






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






6. A strategy that includes some elements of level production and some elements of chase production strategies






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






8. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling






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






10. Simple forecasting approach that assumes that recent history is a good predictor of the near future






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






12. 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






13. The total amount of an end item that is required






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






15. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level






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






17. 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






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






19. 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






20. Maintenance - repair and operating supplies






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






22. 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






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






24. items in transit from ont location to another






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






26. items that are ready for sale to customers






27. 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






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






29. 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.






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






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






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






33. Unit selling price - unit cost






34. The longest lead-time path in the BOM






35. 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






36. inventory classification - info systems - accurate records






37. 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






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






39. inventory that is in the production process






40. Unit cost + disposal cost - salvage value






41. 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)






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






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






44. 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






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






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






47. Quantities of each finished product to be completed for each period






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






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






50. 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)