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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) 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
quantitative ABC analysis procedure
options to accomplish the objective of a chase plan
planned order release
rolling planning horizons
2. Maintenance - repair and operating supplies
marketing research (judgement-based)
inventory turnover
MRO inventory
regression analysis
3. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
stockout (shortage) cost
Disadvantages when inventory turnover is too high
bill of materials (BOM)
autocorrelation
4. Cycle stocks - safety stocks - managing locations - implementing inventory models
Cost of being overstocked by one unit
continuous review model
Managerial approaches to reducing inventory costs
impact of raw material and compontent part stockouts
5. File that contains detailed inventory and procurement records
planned order release
inventory status file
yield management
demand during lead time
6. Decision process in which managers predict demand and make operational plans accordingly
economic order quantity (EOQ)
enterprise resource planning (ERP) system
fixed order quantity (FOQ)
demand forecasting
7. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
two-bin system
Three components of resource requirements planning
important trends influencing operations management and the emergence of business models
collaborative planning - forecasting and replenishment (CPFR)
8. The minimum amount needed in the period
bill of materials (BOM)
order interval
planned order release
net requriements
9. inventory that is in the production process
work in process inventory
demand planning
periodic order quantity (POQ)
economic order quantity (EOQ)
10. 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
Outputs of materials requirements planning (MRP)
continuous review model
forecast accuracy
important trends influencing operations management and the emergence of business models
11. An order for an amount that covers a fixed period of time
important trends influencing operations management and the emergence of business models
Advantages of high inventory turnover
periodic order quantity (POQ)
demand management
12. 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
bullwhip effect
mixed or hybrid strategy
planned order receipt
collaborative activities in CPFR
13. Comparison of production needs to actual capacity
exponential smoothing (time-series - statistical)
materials requirements planning (MRP)
load profile
planning horizon
14. 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
infinite loading
single period inventory model
service level policy
15. Model used to determine the order size for a one-time purchase
single period inventory model
days of supply
the expense components of carrying cost
periodic review model
16. 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
part number
master production schedule (MPS)
Advantages of high inventory turnover
yield management
17. A strategy that includes some elements of level production and some elements of chase production strategies
focused forecasting
target service level (TSL)
cycle counting
mixed or hybrid strategy
18. Correlation of current demand values with past demand values
Wastes produced throughout the five product life cycle stages
forecast bias / mean forecast error
autocorrelation
product cost
19. Production rate is changed in each period to match the amount of expected demand
master production schedule (MPS)
chase strategy (aggregate production strategy)
cumulative lead time
quantitative ABC analysis procedure
20. items in transit from ont location to another
business model
rules of forecasting
difference between order & setup costs
transit inventory
21. The portion of average inventory determined as order quantity divided by two
moving average (time-series - statistical)
assumptions underlying the EOQ formulation
cycle stock
lot-for-lot (L4L)
22. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
Outputs of materials requirements planning (MRP)
stockout (shortage) cost
the financial impact of inventory
stockout
23. 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)
Advantages of high inventory turnover
Soft benefits of S&OP
order interval
target service level (TSL)
24. inventory of an item is stored in two different locations
two-bin system
executive judgment (judgement-based)
impact of raw material and compontent part stockouts
steps to determine order quantity when quantity discounts are available
25. Administrative expenses and the expenses of rearranging a work center to produce an item
dependent demand
the roles of inventory
simulation models
setup cost
26. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
requirements explosion
life cycle analysis
items included in the inventory record
order cost
27. Unit cost + disposal cost - salvage value
days of supply
focused forecasting
difference between order & setup costs
Cost of being overstocked by one unit
28. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
service level policy
capacity requirements planning (CRP)
inventory
nervousness
29. Simple forecasting approach that assumes that recent history is a good predictor of the near future
naive model (time-series - statistical)
service level
days of supply
stockout (shortage) cost
30. A fixed time period that passes between inventory reviews
ABC analysis
distribution requirements planning (DRP)
order interval
service level
31. 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
shift or step change
difference between order & setup costs
enterprise resource planning (ERP) system
32. inventory classification - info systems - accurate records
Techniques used to manage inventory
cost of a unit stockout
forecast accuracy
impact of raw material and compontent part stockouts
33. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
focused forecasting
causal models vs. simulation models
time series and analysis methods
mean absolute deviation / mean absolute error
34. Regular demand patterns of repeating highs and lows
judgement-based forecasting
Advantages of high inventory turnover
planned order release
seasonality and cycles
35. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
historical analogy (judgement-based)
advance planning and scheduling (APS) systems
moving average (time-series - statistical)
steps to determine order quantity when quantity discounts are available
36. Systems that integrate materials and capacity planning into one system
Techniques used to manage inventory
postponable product
continuous review model
advance planning and scheduling (APS) systems
37. The individual time period for planning
business model
moving average (time-series - statistical)
time bucket
inventory status file
38. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
inefficiencies caused by unpredictably fluctuating customer demand
fixed order quantity (FOQ)
Disadvantages when inventory turnover is too high
aggregate production plan
39. 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.
economic order quantity (EOQ)
measures of inventory performance
Impact of lot size restrictions on quantity discounts
Three components of resource requirements planning
40. Demand that depends upon decisions made by internal operations managers
carrying (holding cost)
dependent demand
Soft benefits of S&OP
Techniques used to manage inventory
41. 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
life cycle analysis
grassroots forecasting (judgement-based)
carrying (holding cost)
inefficiencies caused by unpredictably fluctuating customer demand
42. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
43. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
marketing research (judgement-based)
target service level (TSL)
moving average (time-series - statistical)
forecast accuracy
44. The firm produces at a constant rate over the year
MRO inventory
capacity requirements planning (CRP)
raw materials and components parts
level production strategy (aggregate production strategy)
45. 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
naive model (time-series - statistical)
Soft benefits of S&OP
bullwhip effect
distribution requirements planning (DRP)
46. Forecasting techniques that use input from high-level experienced managers
moving average (time-series - statistical)
executive judgment (judgement-based)
weighted moving average (time-series - statistical)
buffer (safety) stock
47. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
Moore's law
rules of forecasting
types of costs that must be identified and quantified in aggregate planning
Global Trade Item Number (GTIN)
48. The sum of the inventory held across all of the locations in a company
rolling planning horizons
total system inventory
materials requirements planning (MRP)
causal models vs. simulation models
49. Vendor is responsible for managing the inventory located at a customer's facility
the expense components of carrying cost
Disadvantages when inventory turnover is too high
business model
vendor-managed inventory (VIM)
50. A combination of common sense inputs from frontline personnel and a computer simulation process
marketing research (judgement-based)
focused forecasting
seasonality and cycles
time bucket