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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. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
days of supply
the roles of inventory
MRO inventory
demand planning
2. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
inventory
total acquisition cost (TAC)
master production schedule (MPS)
causal models vs. simulation models
3. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
two-bin system
Cost of being overstocked by one unit
trend
economic order quantity (EOQ)
4. items in transit from ont location to another
collaborative planning - forecasting and replenishment (CPFR)
impact of raw material and compontent part stockouts
advance planning and scheduling (APS) systems
transit inventory
5. Maintenance - repair and operating supplies
economic order quantity (EOQ)
MRO inventory
demand management tactics
Moore's law
6. The ranking of all items of inventory acording to importance
Hard benefits of S&OP
collaborative planning - forecasting and replenishment (CPFR)
ABC analysis
raw materials and components parts
7. Correlation of current demand values with past demand values
smoothing coefficient
autocorrelation
total acquisition cost (TAC)
measures of inventory performance
8. Expenses incurred due to the fact that inventory is held
carrying (holding cost)
the roles of inventory
load profile
product cost
9. Tool created by AT&T for assessing life cycle costs
life cycle waste assessment matrix (LCWAM)
uncertainty period
load profile
Advantages of high inventory turnover
10. items that are ready for sale to customers
time series and analysis methods
finished goods inventory
planned order receipt
trend
11. Demand that is created by customers
focused forecasting
independet demand
sales and operations planning (S&OP)
types of costs that must be identified and quantified in aggregate planning
12. 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
trend
assumptions underlying the EOQ formulation
Cost of being overstocked by one unit
rought-cut capacity planning
13. An estimate of the capacity needed at work centers
capacity requirements planning (CRP)
finished goods inventory
planned order release
saw-tooth diagram
14. 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)
collaborative planning - forecasting and replenishment (CPFR)
business model
transit inventory
items included in the inventory record
15. 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
Wastes produced throughout the five product life cycle stages
inventory turnover
work in process inventory
16. Production processes halted
bill of materials (BOM)
mean absolute deviation / mean absolute error
dependent demand inventory systems
impact of raw material and compontent part stockouts
17. Management systems used when the demand for an item is derived from the demand for some other item
uncertainty period
cumulative lead time
dependent demand inventory systems
advance planning and scheduling (APS) systems
18. 1) Identify the price breaks on offer 2) Calculate the EOQ at each price break - starting with the lowest 3) Evaluate the feasibility of each EOQ value 4) Calculate the TAC for each feasible EOQ and for the minimum quantity required to attain each p
impact of raw material and compontent part stockouts
forecast bias / mean forecast error
weighted moving average (time-series - statistical)
steps to determine order quantity when quantity discounts are available
19. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
life cycle waste assessment matrix (LCWAM)
collaborative activities in CPFR
cost of a unit stockout
measures of inventory performance
20. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
Three components of resource requirements planning
Moore's law
exponential smoothing (time-series - statistical)
days of supply
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
nervousness
judgement-based forecasting
business model
collaborative activities in CPFR
22. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
yield management
postponable product
Three components of resource requirements planning
square root rule
23. How much should be ordered and when?
basic questions to answer when planning inventories
time series and analysis methods
important trends influencing operations management and the emergence of business models
mean absolute deviation / mean absolute error
24. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
life cycle analysis
nervousness
stockout (shortage) cost
materials requirements planning (MRP)
25. Average size of forecast errors - irrespective of their directions.
mean absolute deviation / mean absolute error
cumulative lead time
product cost
cost of a unit stockout
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
mean absolute deviation / mean absolute error
items included in the inventory record
demand management tactics
postponable product
27. 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
Pareto's law
quantitative ABC analysis procedure
time bucket
stable pattern
28. Model used to determine the order size for a one-time purchase
single period inventory model
seasonality and cycles
total system inventory
mixed or hybrid strategy
29. 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.
level production strategy (aggregate production strategy)
the roles of inventory
Managerial approaches to reducing inventory costs
difference between order & setup costs
30. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
cycle counting
demand management
shift or step change
31. The firm produces at a constant rate over the year
level production strategy (aggregate production strategy)
saw-tooth diagram
planned order receipt
postponable product
32. A planning system used to ensure the right quantities of materials are available when needed
materials requirements planning (MRP)
days of supply
mean absolute deviation / mean absolute error
production order quantity
33. inventory is constantly monitored to decide when a replenishement order needs to be placed
inventory turnover
the roles of inventory
service level policy
continuous review model
34. The total amount of an end item that is required
cycle stock
uncertainty period
gross requirements
the roles of inventory
35. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
regression analysis
distribution requirements planning (DRP)
Techniques used to manage inventory
Global Trade Item Number (GTIN)
36. 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
cycle stock
Impact of lot size restrictions on quantity discounts
stockout
Advantages of high inventory turnover
37. 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)
stockout
part number
rules of forecasting
demand planning
38. Supply of items held by a firm to meet demand
impact of raw material and compontent part stockouts
Soft benefits of S&OP
life cycle analysis
inventory
39. 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
Soft benefits of S&OP
gross requirements
cycle stock
economic order quantity (EOQ)
40. Administrative expenses and the expenses of rearranging a work center to produce an item
setup cost
Impact of lot size restrictions on quantity discounts
Managerial approaches to reducing inventory costs
net requriements
41. An illustration of the pattern of ordering and inventory levels
inventory status file
periodic review model
collaborative planning - forecasting and replenishment (CPFR)
saw-tooth diagram
42. A strategy that includes some elements of level production and some elements of chase production strategies
MRO inventory
mixed or hybrid strategy
part number
enterprise resource planning (ERP) system
43. Minimum level of inventory that triggers the need to order more
reorder point (ROP)
cost of a unit stockout
two-bin system
Pareto's law
44. Difference between a forecast and the actual demand
ABC analysis
collaborative planning - forecasting and replenishment (CPFR)
forecast error
marketing research (judgement-based)
45. Unit selling price - unit cost
cost of a unit stockout
exponential smoothing (time-series - statistical)
time series and analysis methods
mean absolute deviation / mean absolute error
46. An estimation of the availability of the critical resources needed to support the MPS
forecast error
inventory turnover
single period inventory model
rought-cut capacity planning
47. 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
bill of materials (BOM)
setup cost
collaborative planning - forecasting and replenishment (CPFR)
mixed or hybrid strategy
48. The portion of average inventory determined as order quantity divided by two
distribution requirements planning (DRP)
cycle stock
options to accomplish the objective of a chase plan
reorder point (ROP)
49. Quantities of each finished product to be completed for each period
transit inventory
measures of inventory performance
master production schedule (MPS)
focused forecasting
50. An order for the exact amount needed
seasonality and cycles
naive model (time-series - statistical)
lot-for-lot (L4L)
weighted moving average (time-series - statistical)