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. 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






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






3. Software that consolidates all of the business planning systems and data throughout an organization






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






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






6. Primary reports (schedules of the planned order releases that are used to trigger purchases and production of items on time) - and secondary reports (cost - inventory and schedule attainment information that helps judge how well the operation is pe






7. 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






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






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






10. 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






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






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






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






14. Maintenance - repair and operating supplies






15. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time






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






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






18. items in transit from ont location to another






19. Management system built around checking and ordering inventory at some regular interval






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






21. 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






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






23. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost






24. 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






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






26. 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






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






28. 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






29. Regular demand patterns of repeating highs and lows






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






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






32. An order for the same amount each time






33. The determination of how many additional units are needed






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






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






36. Consistent horizontal stream of demands






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






38. Sum of all relevant inventory costs incurred each year






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






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






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






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






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






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






45. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion






46. Correlation of current demand values with past demand values






47. Unit selling price - unit cost






48. An estimate of the capacity needed at work centers






49. 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






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