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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. Minimum level of inventory that triggers the need to order more
vendor-managed inventory (VIM)
saw-tooth diagram
materials requirements planning (MRP)
reorder point (ROP)
2. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
stockout (shortage) cost
cycle counting
capacity requirements planning (CRP)
Three components of resource requirements planning
3. Expenses incurred due to the fact that inventory is held
grassroots forecasting (judgement-based)
carrying (holding cost)
reorder point (ROP)
cycle stock
4. The amount of an item that is planned to be ordered in a period
carrying (holding cost)
fixed order quantity (FOQ)
requirements explosion
planned order release
5. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
bullwhip effect
gross requirements
Steps of designing a forecasting process
ABC analysis
6. Systems that integrate materials and capacity planning into one system
time bucket
advance planning and scheduling (APS) systems
nervousness
service level
7. The assumption that there is an infinite amount of capacity available
single period inventory model
service level
infinite loading
inventory status file
8. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
Outputs of materials requirements planning (MRP)
Techniques used to manage inventory
square root rule
finished goods inventory
9. 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
grassroots forecasting (judgement-based)
sales and operations planning (S&OP)
Steps of designing a forecasting process
bullwhip effect
10. A strategy that includes some elements of level production and some elements of chase production strategies
marketing research (judgement-based)
capacity requirements planning (CRP)
mixed or hybrid strategy
causal models vs. simulation models
11. Quantities of each finished product to be completed for each period
moving average (time-series - statistical)
master production schedule (MPS)
basic questions to answer when planning inventories
sales and operations planning (S&OP)
12. An order for the exact amount needed
independent demand inventory systems
lot-for-lot (L4L)
available to promise
net requriements
13. Demand that depends upon decisions made by internal operations managers
simulation models
inventory status file
dependent demand
nervousness
14. An illustration of the pattern of ordering and inventory levels
ways to improve demand planning
Techniques used to manage inventory
Advantages of high inventory turnover
saw-tooth diagram
15. The total amount of an end item that is required
planning horizon
gross requirements
Disadvantages when inventory turnover is too high
lot-for-lot (L4L)
16. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
forecast error
aggregate production plan
executive judgment (judgement-based)
Soft benefits of S&OP
17. Process that adjusts prices as demand for a service occurs (or does not occur)
seasonality and cycles
demand forecasting
yield management
demand management tactics
18. How much should be ordered and when?
dependent demand
options to accomplish the objective of a chase plan
cost of a unit stockout
basic questions to answer when planning inventories
19. Tool created by AT&T for assessing life cycle costs
demand during lead time
distribution requirements planning (DRP)
life cycle waste assessment matrix (LCWAM)
historical analogy (judgement-based)
20. The ranking of all items of inventory acording to importance
ABC analysis
weighted moving average (time-series - statistical)
planned order release
rules of forecasting
21. A planning system used to ensure the right quantities of materials are available when needed
materials requirements planning (MRP)
periodic order quantity (POQ)
production order quantity
focused forecasting
22. inventory of an item is stored in two different locations
two-bin system
Three components of resource requirements planning
gross requirements
Steps of designing a forecasting process
23. Amount paid to suppliers for products that are purchased
product cost
historical analogy (judgement-based)
Cost of being overstocked by one unit
the financial impact of inventory
24. 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
grassroots forecasting (judgement-based)
collaborative activities in CPFR
inventory
Impact of lot size restrictions on quantity discounts
25. The individual time period for planning
Three components of resource requirements planning
periodic order quantity (POQ)
simulation models
time bucket
26. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
difference between order & setup costs
independet demand
Impact of lot size restrictions on quantity discounts
postponable product
27. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
rules of forecasting
Disadvantages when inventory turnover is too high
trend
sales and operations planning (S&OP)
28. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
shift or step change
nervousness
cumulative lead time
historical analogy (judgement-based)
29. An event that occurs when no inventory is available
dependent demand
stockout
collaborative activities in CPFR
quantitative ABC analysis procedure
30. 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)
grassroots forecasting (judgement-based)
measures of inventory performance
target service level (TSL)
total acquisition cost (TAC)
31. items in transit from ont location to another
transit inventory
assumptions underlying the EOQ formulation
life cycle analysis
order interval
32. 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
demand management tactics
forecast error
planned order release
mean absolute deviation / mean absolute error
33. 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
Soft benefits of S&OP
target service level (TSL)
cost of a unit stockout
smoothing coefficient
34. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
35. Vendor is responsible for managing the inventory located at a customer's facility
transit inventory
vendor-managed inventory (VIM)
independet demand
items included in the inventory record
36. The minimum amount needed in the period
moving average (time-series - statistical)
production order quantity
net requriements
materials requirements planning (MRP)
37. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
finished goods inventory
production order quantity
naive model (time-series - statistical)
Advantages of high inventory turnover
38. 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)
total system inventory
exponential smoothing (time-series - statistical)
items included in the inventory record
service level
39. The part of panned production that is not committed to a customer
target service level (TSL)
distribution requirements planning (DRP)
available to promise
periodic review model
40. The portion of average inventory determined as order quantity divided by two
ways to improve demand planning
focused forecasting
stockout
cycle stock
41. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
service level policy
single period inventory model
independet demand
nervousness
42. An order for an amount that covers a fixed period of time
materials requirements planning (MRP)
square root rule
stable pattern
periodic order quantity (POQ)
43. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
dependent demand
ways to improve demand planning
Techniques used to manage inventory
exponential smoothing (time-series - statistical)
44. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
Three components of resource requirements planning
collaborative activities in CPFR
net requriements
inventory turnover
45. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
nervousness
trend
transit inventory
Three components of resource requirements planning
46. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
forecast bias / mean forecast error
measures of inventory performance
dependent demand
Delphi method (judgement-based)
47. 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.
Impact of lot size restrictions on quantity discounts
Hard benefits of S&OP
capacity requirements planning (CRP)
gross requirements
48. Technique that seeks inputs from people who are in close contact with customers and products
grassroots forecasting (judgement-based)
independet demand
executive judgment (judgement-based)
stable pattern
49. Process where each item in inventory is physically counted on a routine schedule
cycle counting
level production strategy (aggregate production strategy)
order cost
periodic order quantity (POQ)
50. items that are ready for sale to customers
total acquisition cost (TAC)
Cost of being overstocked by one unit
economic order quantity (EOQ)
finished goods inventory