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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. Expenses incurred due to the fact that inventory is held
setup cost
carrying (holding cost)
stockout (shortage) cost
Delphi method (judgement-based)
2. 1) Produce all units internally by hiring workers in high-demand monts and firing/laying off workers in low-demand months 2) Produce internally the quantity required to meet demand in the lowest-demand month and use overtime production to meet demand
options to accomplish the objective of a chase plan
planning horizon
Cost of being overstocked by one unit
stockout (shortage) cost
3. 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
planning horizon
inefficiencies caused by unpredictably fluctuating customer demand
Techniques used to manage inventory
business model
4. Simple forecasting approach that assumes that recent history is a good predictor of the near future
items included in the inventory record
Cost of being overstocked by one unit
naive model (time-series - statistical)
single period inventory model
5. 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
periodic order quantity (POQ)
Steps of designing a forecasting process
days of supply
stockout (shortage) cost
6. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
the expense components of carrying cost
the roles of inventory
Pareto's law
executive judgment (judgement-based)
7. The entire time period covered by the MPS
difference between order & setup costs
naive model (time-series - statistical)
production order quantity
planning horizon
8. 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
rules of forecasting
postponable product
level production strategy (aggregate production strategy)
collaborative planning - forecasting and replenishment (CPFR)
9. Replan each period (month or quarter) - for a given number of periods into the future
demand during lead time
exponential smoothing (time-series - statistical)
rolling planning horizons
demand planning
10. The portion of average inventory determined as order quantity divided by two
cycle stock
smoothing coefficient
shift or step change
Delphi method (judgement-based)
11. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
measures of inventory performance
Wastes produced throughout the five product life cycle stages
trend
fixed order quantity (FOQ)
12. Production processes halted
advance planning and scheduling (APS) systems
impact of raw material and compontent part stockouts
demand forecasting
lot-for-lot (L4L)
13. 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)
Soft benefits of S&OP
setup cost
demand planning
Pareto's law
14. The determination of how many additional units are needed
difference between order & setup costs
inefficiencies caused by unpredictably fluctuating customer demand
requirements explosion
fixed order quantity (FOQ)
15. Comparison of production needs to actual capacity
basic questions to answer when planning inventories
load profile
distribution requirements planning (DRP)
marketing research (judgement-based)
16. File that contains detailed inventory and procurement records
inventory status file
demand management tactics
bill of materials (BOM)
collaborative planning - forecasting and replenishment (CPFR)
17. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
collaborative activities in CPFR
inefficiencies caused by unpredictably fluctuating customer demand
autocorrelation
measures of inventory performance
18. 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
the financial impact of inventory
demand management tactics
net requriements
demand forecasting
19. Correlation of current demand values with past demand values
infinite loading
Managerial approaches to reducing inventory costs
autocorrelation
product cost
20. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
economic order quantity (EOQ)
production order quantity
moving average (time-series - statistical)
Cost of being overstocked by one unit
21. Vendor is responsible for managing the inventory located at a customer's facility
infinite loading
Advantages of high inventory turnover
trend
vendor-managed inventory (VIM)
22. Tool created by AT&T for assessing life cycle costs
life cycle waste assessment matrix (LCWAM)
gross requirements
Delphi method (judgement-based)
marketing research (judgement-based)
23. Demand that depends upon decisions made by internal operations managers
materials requirements planning (MRP)
dependent demand
planning horizon
naive model (time-series - statistical)
24. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
planned order receipt
order cost
days of supply
buffer (safety) stock
25. The ranking of all items of inventory acording to importance
forecast error
uncertainty period
Moore's law
ABC analysis
26. A period of time when an unknown amount of inventory is on hand
uncertainty period
distribution requirements planning (DRP)
independent demand inventory systems
load profile
27. A mathematical approach for fitting an equation to a set of data
regression analysis
causal models vs. simulation models
advance planning and scheduling (APS) systems
the expense components of carrying cost
28. inventory is constantly monitored to decide when a replenishement order needs to be placed
total acquisition cost (TAC)
production order quantity
continuous review model
service level policy
29. inventory that is in the production process
exponential smoothing (time-series - statistical)
steps to determine order quantity when quantity discounts are available
work in process inventory
stockout
30. items that are ready for sale to customers
forecast error
target service level (TSL)
Delphi method (judgement-based)
finished goods inventory
31. The tendency of a forecasting technique to continually overpredict or underpredict demand.
order cost
forecast bias / mean forecast error
product cost
service level policy
32. 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
level production strategy (aggregate production strategy)
quantitative ABC analysis procedure
judgement-based forecasting
difference between order & setup costs
33. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
judgement-based forecasting
simulation models
transit inventory
planning horizon
34. inventory management systems used when the demand for an item is beyond the control of the organization
Impact of lot size restrictions on quantity discounts
inefficiencies caused by unpredictably fluctuating customer demand
independent demand inventory systems
Steps of designing a forecasting process
35. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle
demand planning
chase strategy (aggregate production strategy)
service level
life cycle analysis
36. The assumption that there is an infinite amount of capacity available
inefficiencies caused by unpredictably fluctuating customer demand
infinite loading
dependent demand
moving average (time-series - statistical)
37. An estimation of the availability of the critical resources needed to support the MPS
the financial impact of inventory
business model
inventory turnover
rought-cut capacity planning
38. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
the financial impact of inventory
Wastes produced throughout the five product life cycle stages
service level policy
basic questions to answer when planning inventories
39. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
the financial impact of inventory
buffer (safety) stock
Global Trade Item Number (GTIN)
the expense components of carrying cost
40. Average size of forecast errors - irrespective of their directions.
order interval
inventory turnover
mean absolute deviation / mean absolute error
stockout (shortage) cost
41. Technique that seeks inputs from people who are in close contact with customers and products
grassroots forecasting (judgement-based)
forecast bias / mean forecast error
rules of forecasting
Advantages of high inventory turnover
42. 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
Three components of resource requirements planning
net requriements
uncertainty period
43. The amount of an item that is planned to be ordered in a period
collaborative planning - forecasting and replenishment (CPFR)
planned order release
level production strategy (aggregate production strategy)
chase strategy (aggregate production strategy)
44. A combination of common sense inputs from frontline personnel and a computer simulation process
inventory
Global Trade Item Number (GTIN)
focused forecasting
enterprise resource planning (ERP) system
45. 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
difference between order & setup costs
rought-cut capacity planning
Advantages of high inventory turnover
two-bin system
46. The amount that is planned to arrive at the beginning of a period
planned order receipt
exponential smoothing (time-series - statistical)
collaborative planning - forecasting and replenishment (CPFR)
stockout (shortage) cost
47. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
order cost
nervousness
demand management
types of costs that must be identified and quantified in aggregate planning
48. Forecasting techniques that use input from high-level experienced managers
time series and analysis methods
demand planning
executive judgment (judgement-based)
forecast bias / mean forecast error
49. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
inventory turnover
trend
the financial impact of inventory
service level
50. 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
steps to determine order quantity when quantity discounts are available
business model
bill of materials (BOM)
yield management