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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 individual time period for planning
quantitative ABC analysis procedure
time bucket
work in process inventory
marketing research (judgement-based)
2. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
Advantages of high inventory turnover
measures of inventory performance
historical analogy (judgement-based)
service level
3. Supply of items held by a firm to meet demand
bullwhip effect
nervousness
inventory
planning horizon
4. The sum of the inventory held across all of the locations in a company
collaborative planning - forecasting and replenishment (CPFR)
economic order quantity (EOQ)
Hard benefits of S&OP
total system inventory
5. Comparison of production needs to actual capacity
stockout (shortage) cost
load profile
production order quantity
aggregate production plan
6. The entire time period covered by the MPS
infinite loading
rules of forecasting
planning horizon
advance planning and scheduling (APS) systems
7. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
smoothing coefficient
basic questions to answer when planning inventories
collaborative activities in CPFR
trend
8. An order for an amount that covers a fixed period of time
reorder point (ROP)
Impact of lot size restrictions on quantity discounts
periodic order quantity (POQ)
Disadvantages when inventory turnover is too high
9. 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
the financial impact of inventory
simulation models
types of costs that must be identified and quantified in aggregate planning
Impact of lot size restrictions on quantity discounts
10. 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
Hard benefits of S&OP
demand during lead time
business model
cumulative lead time
11. inconsistencies in the plan causes by changes to the MPS
the expense components of carrying cost
independet demand
nervousness
Outputs of materials requirements planning (MRP)
12. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
inefficiencies caused by unpredictably fluctuating customer demand
types of costs that must be identified and quantified in aggregate planning
causal models vs. simulation models
planning horizon
13. Consistent horizontal stream of demands
judgement-based forecasting
stable pattern
cycle counting
Delphi method (judgement-based)
14. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
historical analogy (judgement-based)
bullwhip effect
planning horizon
carrying (holding cost)
15. Technique that seeks inputs from people who are in close contact with customers and products
forecast error
grassroots forecasting (judgement-based)
regression analysis
time bucket
16. Amount paid to suppliers for products that are purchased
inventory turnover
inefficiencies caused by unpredictably fluctuating customer demand
product cost
dependent demand inventory systems
17. Management system built around checking and ordering inventory at some regular interval
advance planning and scheduling (APS) systems
lot-for-lot (L4L)
business model
periodic review model
18. Process that adjusts prices as demand for a service occurs (or does not occur)
yield management
fixed order quantity (FOQ)
the financial impact of inventory
forecast accuracy
19. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
dependent demand
Managerial approaches to reducing inventory costs
important trends influencing operations management and the emergence of business models
Outputs of materials requirements planning (MRP)
20. A strategy that includes some elements of level production and some elements of chase production strategies
judgement-based forecasting
collaborative activities in CPFR
options to accomplish the objective of a chase plan
mixed or hybrid strategy
21. 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
gross requirements
judgement-based forecasting
independent demand inventory systems
assumptions underlying the EOQ formulation
22. The total amount of an end item that is required
reorder point (ROP)
life cycle analysis
measures of inventory performance
gross requirements
23. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
net requriements
gross requirements
Wastes produced throughout the five product life cycle stages
the financial impact of inventory
24. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
cost of a unit stockout
demand management tactics
square root rule
25. Unit cost + disposal cost - salvage value
forecast error
advance planning and scheduling (APS) systems
the expense components of carrying cost
Cost of being overstocked by one unit
26. 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
life cycle waste assessment matrix (LCWAM)
vendor-managed inventory (VIM)
forecast bias / mean forecast error
demand management tactics
27. The minimum amount needed in the period
total system inventory
master production schedule (MPS)
Delphi method (judgement-based)
net requriements
28. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
production order quantity
life cycle waste assessment matrix (LCWAM)
marketing research (judgement-based)
Techniques used to manage inventory
29. 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
stable pattern
nervousness
capacity requirements planning (CRP)
Steps of designing a forecasting process
30. 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
demand management tactics
Soft benefits of S&OP
periodic order quantity (POQ)
judgement-based forecasting
31. Expenses incurred due to the fact that inventory is held
carrying (holding cost)
trend
the expense components of carrying cost
bullwhip effect
32. Unique ID for a part used by a specific company
causal models vs. simulation models
inefficiencies caused by unpredictably fluctuating customer demand
part number
the financial impact of inventory
33. inventory management systems used when the demand for an item is beyond the control of the organization
MRO inventory
causal models vs. simulation models
independent demand inventory systems
master production schedule (MPS)
34. The longest lead-time path in the BOM
sales and operations planning (S&OP)
mixed or hybrid strategy
Managerial approaches to reducing inventory costs
cumulative lead time
35. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
seasonality and cycles
time series and analysis methods
life cycle analysis
demand management
36. An estimate of the capacity needed at work centers
the financial impact of inventory
capacity requirements planning (CRP)
saw-tooth diagram
cycle stock
37. Software that consolidates all of the business planning systems and data throughout an organization
demand during lead time
enterprise resource planning (ERP) system
demand planning
life cycle waste assessment matrix (LCWAM)
38. The ranking of all items of inventory acording to importance
ABC analysis
smoothing coefficient
seasonality and cycles
total system inventory
39. The amount that is planned to arrive at the beginning of a period
smoothing coefficient
forecast error
Managerial approaches to reducing inventory costs
planned order receipt
40. A one-time change in demand - susually due to some external influence on demand
items included in the inventory record
shift or step change
judgement-based forecasting
raw materials and components parts
41. A fixed time period that passes between inventory reviews
bill of materials (BOM)
setup cost
order interval
Hard benefits of S&OP
42. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
Outputs of materials requirements planning (MRP)
bullwhip effect
the expense components of carrying cost
postponable product
43. 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
rules of forecasting
service level policy
Hard benefits of S&OP
the expense components of carrying cost
44. Measurement of how closely the forecast aligns with the observations over time
forecast accuracy
chase strategy (aggregate production strategy)
Advantages of high inventory turnover
stockout
45. Built upon estimates and opinions of people - e.g. experts. Attempt to incorporate factors of demand that are difficult to capture in a purely statistical model.
historical analogy (judgement-based)
buffer (safety) stock
judgement-based forecasting
moving average (time-series - statistical)
46. Determination of replenishement and postioining of finished goods in the distribution network
distribution requirements planning (DRP)
items included in the inventory record
demand management tactics
Three components of resource requirements planning
47. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
steps to determine order quantity when quantity discounts are available
independent demand inventory systems
bullwhip effect
demand planning
48. Correlation of current demand values with past demand values
autocorrelation
total system inventory
Pareto's law
single period inventory model
49. 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
Disadvantages when inventory turnover is too high
Hard benefits of S&OP
two-bin system
transit inventory
50. Decision process in which managers predict demand and make operational plans accordingly
seasonality and cycles
Pareto's law
Hard benefits of S&OP
demand forecasting