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






2. 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)






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






4. Unit selling price - unit cost






5. 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






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






7. 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






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






9. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes






10. 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






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






12. inventory of an item is stored in two different locations






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






14. Items bought from suppliers to use in the production of a product






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


16. The tendency of a forecasting technique to continually overpredict or underpredict demand.






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






18. Unit cost + disposal cost - salvage value






19. 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






20. 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






21. 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






22. 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






23. The amount of demand that occurs while awaiting receipt of an inventory replenishment order






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






25. 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






26. Correlation of current demand values with past demand values






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






28. Extra inventory held to guard against uncertainty in demand or supply






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






30. Maintenance - repair and operating supplies






31. Minimum level of inventory that triggers the need to order more






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






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






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






35. Production processes halted






36. Sum of all relevant inventory costs incurred each year






37. 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






38. Forecasting model model that assigns a different weight to each period's demand according to its importance






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






40. 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






41. The individual time period for planning






42. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product






43. 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






44. items in transit from ont location to another






45. File that contains detailed inventory and procurement records






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






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






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






49. 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






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