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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. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
life cycle analysis
work in process inventory
demand during lead time
postponable product
2. Unique ID for a part used by a specific company
aggregate production plan
materials requirements planning (MRP)
Global Trade Item Number (GTIN)
part number
3. 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
Three components of resource requirements planning
Steps of designing a forecasting process
yield management
mixed or hybrid strategy
4. 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.
difference between order & setup costs
dependent demand
carrying (holding cost)
marketing research (judgement-based)
5. Management systems used when the demand for an item is derived from the demand for some other item
periodic review model
dependent demand inventory systems
square root rule
stable pattern
6. The total amount of an end item that is required
forecast accuracy
gross requirements
raw materials and components parts
advance planning and scheduling (APS) systems
7. items in transit from ont location to another
smoothing coefficient
transit inventory
forecast accuracy
order cost
8. 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
inventory turnover
the expense components of carrying cost
basic questions to answer when planning inventories
uncertainty period
9. An estimate of the capacity needed at work centers
capacity requirements planning (CRP)
vendor-managed inventory (VIM)
saw-tooth diagram
Moore's law
10. Demand that depends upon decisions made by internal operations managers
target service level (TSL)
time bucket
dependent demand
enterprise resource planning (ERP) system
11. 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
cost of a unit stockout
dependent demand inventory systems
Outputs of materials requirements planning (MRP)
total system inventory
12. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
items included in the inventory record
demand during lead time
demand management
vendor-managed inventory (VIM)
13. Software that consolidates all of the business planning systems and data throughout an organization
enterprise resource planning (ERP) system
advance planning and scheduling (APS) systems
important trends influencing operations management and the emergence of business models
bill of materials (BOM)
14. The sum of the inventory held across all of the locations in a company
total system inventory
order cost
planned order release
judgement-based forecasting
15. 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.
trend
Impact of lot size restrictions on quantity discounts
independet demand
options to accomplish the objective of a chase plan
16. Supply of items held by a firm to meet demand
inventory
cumulative lead time
order interval
mean absolute deviation / mean absolute error
17. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
total acquisition cost (TAC)
saw-tooth diagram
moving average (time-series - statistical)
economic order quantity (EOQ)
18. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
order cost
ways to improve demand planning
demand management
postponable product
19. inventory classification - info systems - accurate records
steps to determine order quantity when quantity discounts are available
rules of forecasting
exponential smoothing (time-series - statistical)
Techniques used to manage inventory
20. Consistent horizontal stream of demands
stable pattern
ABC analysis
Hard benefits of S&OP
historical analogy (judgement-based)
21. An order for an amount that covers a fixed period of time
product cost
life cycle analysis
periodic order quantity (POQ)
seasonality and cycles
22. 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
inefficiencies caused by unpredictably fluctuating customer demand
Delphi method (judgement-based)
marketing research (judgement-based)
ways to improve demand planning
23. Forecasting techniques that use input from high-level experienced managers
executive judgment (judgement-based)
important trends influencing operations management and the emergence of business models
service level
enterprise resource planning (ERP) system
24. 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)
causal models vs. simulation models
regression analysis
target service level (TSL)
infinite loading
25. Average size of forecast errors - irrespective of their directions.
distribution requirements planning (DRP)
fixed order quantity (FOQ)
mean absolute deviation / mean absolute error
inventory status file
26. Amount paid to suppliers for products that are purchased
seasonality and cycles
aggregate production plan
available to promise
product cost
27. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
order cost
Delphi method (judgement-based)
historical analogy (judgement-based)
finished goods inventory
28. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
time series and analysis methods
trend
target service level (TSL)
available to promise
29. A method by which supply chain partners periodicaly hsare forecasts - demand palns - and resource plans in order to reduce uncertainty and risk in meeting customer demand
Global Trade Item Number (GTIN)
finished goods inventory
days of supply
collaborative planning - forecasting and replenishment (CPFR)
30. Simple forecasting approach that assumes that recent history is a good predictor of the near future
forecast accuracy
naive model (time-series - statistical)
demand management tactics
the roles of inventory
31. 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
collaborative planning - forecasting and replenishment (CPFR)
yield management
quantitative ABC analysis procedure
impact of raw material and compontent part stockouts
32. How much should be ordered and when?
net requriements
basic questions to answer when planning inventories
fixed order quantity (FOQ)
weighted moving average (time-series - statistical)
33. Measurement of how closely the forecast aligns with the observations over time
demand during lead time
stable pattern
cost of a unit stockout
forecast accuracy
34. 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
cost of a unit stockout
target service level (TSL)
business model
sales and operations planning (S&OP)
35. Unit cost + disposal cost - salvage value
measures of inventory performance
items included in the inventory record
Cost of being overstocked by one unit
executive judgment (judgement-based)
36. 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
inventory turnover
focused forecasting
assumptions underlying the EOQ formulation
single period inventory model
37. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
rolling planning horizons
master production schedule (MPS)
simulation models
reorder point (ROP)
38. The entire time period covered by the MPS
cycle stock
Hard benefits of S&OP
demand planning
planning horizon
39. 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
order interval
independet demand
Hard benefits of S&OP
demand forecasting
40. A combination of common sense inputs from frontline personnel and a computer simulation process
focused forecasting
finished goods inventory
smoothing coefficient
chase strategy (aggregate production strategy)
41. Expenses incurred due to the fact that inventory is held
demand during lead time
available to promise
carrying (holding cost)
single period inventory model
42. A mathematical approach for fitting an equation to a set of data
simulation models
causal models vs. simulation models
regression analysis
two-bin system
43. 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
important trends influencing operations management and the emergence of business models
Advantages of high inventory turnover
grassroots forecasting (judgement-based)
historical analogy (judgement-based)
44. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
periodic review model
stockout (shortage) cost
chase strategy (aggregate production strategy)
cycle stock
45. File that contains detailed inventory and procurement records
inventory status file
bill of materials (BOM)
options to accomplish the objective of a chase plan
items included in the inventory record
46. items that are ready for sale to customers
continuous review model
demand forecasting
finished goods inventory
master production schedule (MPS)
47. Quantities of each finished product to be completed for each period
master production schedule (MPS)
work in process inventory
nervousness
setup cost
48. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
business model
Global Trade Item Number (GTIN)
yield management
ways to improve demand planning
49. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
setup cost
options to accomplish the objective of a chase plan
aggregate production plan
saw-tooth diagram
50. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
rought-cut capacity planning
naive model (time-series - statistical)
Delphi method (judgement-based)
impact of raw material and compontent part stockouts