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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. Difference between a forecast and the actual demand
forecast error
Steps of designing a forecasting process
Cost of being overstocked by one unit
life cycle waste assessment matrix (LCWAM)
2. Measurement of how closely the forecast aligns with the observations over time
forecast accuracy
available to promise
shift or step change
service level
3. inventory management systems used when the demand for an item is beyond the control of the organization
Delphi method (judgement-based)
quantitative ABC analysis procedure
independent demand inventory systems
simulation models
4. Demand that depends upon decisions made by internal operations managers
exponential smoothing (time-series - statistical)
quantitative ABC analysis procedure
dependent demand
autocorrelation
5. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
6. 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
Three components of resource requirements planning
the financial impact of inventory
inefficiencies caused by unpredictably fluctuating customer demand
demand planning
7. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
Three components of resource requirements planning
Techniques used to manage inventory
total acquisition cost (TAC)
8. A combination of common sense inputs from frontline personnel and a computer simulation process
demand during lead time
life cycle waste assessment matrix (LCWAM)
focused forecasting
smoothing coefficient
9. Extra inventory held to guard against uncertainty in demand or supply
setup cost
buffer (safety) stock
Hard benefits of S&OP
reorder point (ROP)
10. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
causal models vs. simulation models
Pareto's law
business model
Hard benefits of S&OP
11. An order for the same amount each time
saw-tooth diagram
fixed order quantity (FOQ)
materials requirements planning (MRP)
demand during lead time
12. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
causal models vs. simulation models
capacity requirements planning (CRP)
forecast accuracy
13. The sum of the inventory held across all of the locations in a company
seasonality and cycles
Cost of being overstocked by one unit
square root rule
total system inventory
14. items that are ready for sale to customers
finished goods inventory
level production strategy (aggregate production strategy)
setup cost
time series and analysis methods
15. A strategy that includes some elements of level production and some elements of chase production strategies
autocorrelation
dependent demand
mixed or hybrid strategy
inventory status file
16. 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.
capacity requirements planning (CRP)
periodic order quantity (POQ)
regression analysis
judgement-based forecasting
17. A mathematical approach for fitting an equation to a set of data
gross requirements
planned order release
cumulative lead time
regression analysis
18. 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.
the expense components of carrying cost
Impact of lot size restrictions on quantity discounts
service level policy
Advantages of high inventory turnover
19. An order for the exact amount needed
master production schedule (MPS)
service level policy
lot-for-lot (L4L)
the financial impact of inventory
20. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
marketing research (judgement-based)
important trends influencing operations management and the emergence of business models
demand during lead time
life cycle waste assessment matrix (LCWAM)
21. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle
life cycle analysis
aggregate production plan
time bucket
single period inventory model
22. The portion of average inventory determined as order quantity divided by two
naive model (time-series - statistical)
cycle stock
regression analysis
Hard benefits of S&OP
23. A parameter indicating the weight given to the most recent demand
mean absolute deviation / mean absolute error
Soft benefits of S&OP
smoothing coefficient
independent demand inventory systems
24. Administrative expenses and the expenses of rearranging a work center to produce an item
Cost of being overstocked by one unit
setup cost
order interval
infinite loading
25. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
order cost
types of costs that must be identified and quantified in aggregate planning
marketing research (judgement-based)
continuous review model
26. 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)
buffer (safety) stock
demand management
Global Trade Item Number (GTIN)
items included in the inventory record
27. Unit cost + disposal cost - salvage value
Cost of being overstocked by one unit
rules of forecasting
capacity requirements planning (CRP)
raw materials and components parts
28. Vendor is responsible for managing the inventory located at a customer's facility
vendor-managed inventory (VIM)
order cost
total acquisition cost (TAC)
causal models vs. simulation models
29. Items bought from suppliers to use in the production of a product
raw materials and components parts
Steps of designing a forecasting process
demand management tactics
sales and operations planning (S&OP)
30. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
MRO inventory
exponential smoothing (time-series - statistical)
collaborative planning - forecasting and replenishment (CPFR)
important trends influencing operations management and the emergence of business models
31. The amount that is planned to arrive at the beginning of a period
planned order receipt
difference between order & setup costs
smoothing coefficient
requirements explosion
32. File that contains detailed inventory and procurement records
stockout (shortage) cost
inventory status file
Global Trade Item Number (GTIN)
items included in the inventory record
33. 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
smoothing coefficient
demand management tactics
Wastes produced throughout the five product life cycle stages
total acquisition cost (TAC)
34. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
bill of materials (BOM)
load profile
historical analogy (judgement-based)
forecast accuracy
35. 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
Pareto's law
inefficiencies caused by unpredictably fluctuating customer demand
steps to determine order quantity when quantity discounts are available
inventory status file
36. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
work in process inventory
collaborative planning - forecasting and replenishment (CPFR)
moving average (time-series - statistical)
regression analysis
37. 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
the expense components of carrying cost
sales and operations planning (S&OP)
seasonality and cycles
order cost
38. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
bullwhip effect
transit inventory
postponable product
causal models vs. simulation models
39. Sum of all relevant inventory costs incurred each year
total acquisition cost (TAC)
items included in the inventory record
fixed order quantity (FOQ)
dependent demand inventory systems
40. Process where each item in inventory is physically counted on a routine schedule
cycle counting
Advantages of high inventory turnover
planned order receipt
stockout (shortage) cost
41. 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
production order quantity
Steps of designing a forecasting process
focused forecasting
ABC analysis
42. 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
service level
demand management tactics
marketing research (judgement-based)
mixed or hybrid strategy
43. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
square root rule
Wastes produced throughout the five product life cycle stages
chase strategy (aggregate production strategy)
seasonality and cycles
44. 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
exponential smoothing (time-series - statistical)
postponable product
collaborative activities in CPFR
capacity requirements planning (CRP)
45. Forecasting techniques that use input from high-level experienced managers
executive judgment (judgement-based)
buffer (safety) stock
finished goods inventory
rought-cut capacity planning
46. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
gross requirements
work in process inventory
inventory turnover
stockout (shortage) cost
47. Correlation of current demand values with past demand values
collaborative planning - forecasting and replenishment (CPFR)
autocorrelation
production order quantity
forecast error
48. Determination of replenishement and postioining of finished goods in the distribution network
distribution requirements planning (DRP)
business model
regression analysis
planned order receipt
49. Quantities of each finished product to be completed for each period
reorder point (ROP)
collaborative planning - forecasting and replenishment (CPFR)
master production schedule (MPS)
steps to determine order quantity when quantity discounts are available
50. 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
Advantages of high inventory turnover
rules of forecasting
independent demand inventory systems
cycle stock