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. Model used to determine the order size for a one-time purchase






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






3. An event that occurs when no inventory is available






4. Determination of replenishement and postioining of finished goods in the distribution network






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






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






7. The minimum amount needed in the period






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






9. 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






10. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain






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






12. The portion of average inventory determined as order quantity divided by two






13. A fixed time period that passes between inventory reviews






14. 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






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






16. 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






17. 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






18. Proactive approach in which managers attempt to influence either the pattern or consistency of demand






19. 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






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






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






22. Regular demand patterns of repeating highs and lows






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






24. Unit selling price - unit cost






25. An estimate of the capacity needed at work centers






26. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information






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






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






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






30. Amount paid to suppliers for products that are purchased






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






32. How much should be ordered and when?






33. A period of time when an unknown amount of inventory is on hand






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






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






36. 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)






37. Sum of all relevant inventory costs incurred each year






38. The determination of how many additional units are needed






39. Demand that is created by customers






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






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






42. The individual time period for planning






43. 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)






44. Correlation of current demand values with past demand values






45. Systems that integrate materials and capacity planning into one system






46. 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)






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






48. items in transit from ont location to another






49. 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.






50. Maintenance - repair and operating supplies