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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 amount of demand that occurs while awaiting receipt of an inventory replenishment order
demand during lead time
moving average (time-series - statistical)
setup cost
inefficiencies caused by unpredictably fluctuating customer demand
2. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
dependent demand inventory systems
vendor-managed inventory (VIM)
mean absolute deviation / mean absolute error
Delphi method (judgement-based)
3. 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
types of costs that must be identified and quantified in aggregate planning
seasonality and cycles
capacity requirements planning (CRP)
rules of forecasting
4. The longest lead-time path in the BOM
total system inventory
rolling planning horizons
cumulative lead time
product cost
5. How much should be ordered and when?
basic questions to answer when planning inventories
causal models vs. simulation models
marketing research (judgement-based)
items included in the inventory record
6. The total amount of an end item that is required
stockout
days of supply
lot-for-lot (L4L)
gross requirements
7. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
postponable product
dependent demand
Wastes produced throughout the five product life cycle stages
economic order quantity (EOQ)
8. A mathematical approach for fitting an equation to a set of data
service level policy
steps to determine order quantity when quantity discounts are available
regression analysis
marketing research (judgement-based)
9. Items bought from suppliers to use in the production of a product
trend
total system inventory
raw materials and components parts
mixed or hybrid strategy
10. Demand that is created by customers
raw materials and components parts
postponable product
exponential smoothing (time-series - statistical)
independet demand
11. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
production order quantity
marketing research (judgement-based)
Managerial approaches to reducing inventory costs
types of costs that must be identified and quantified in aggregate planning
12. Maintenance - repair and operating supplies
MRO inventory
assumptions underlying the EOQ formulation
Three components of resource requirements planning
rolling planning horizons
13. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
target service level (TSL)
MRO inventory
Pareto's law
Global Trade Item Number (GTIN)
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
items included in the inventory record
the financial impact of inventory
cycle stock
judgement-based forecasting
15. 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
uncertainty period
quantitative ABC analysis procedure
types of costs that must be identified and quantified in aggregate planning
periodic order quantity (POQ)
16. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
requirements explosion
master production schedule (MPS)
historical analogy (judgement-based)
seasonality and cycles
17. A combination of common sense inputs from frontline personnel and a computer simulation process
setup cost
focused forecasting
Outputs of materials requirements planning (MRP)
independent demand inventory systems
18. The determination of how many additional units are needed
periodic order quantity (POQ)
requirements explosion
time bucket
Managerial approaches to reducing inventory costs
19. 1) Inventory holding cost 2) Regular production cost 3) Overtime cost 4) Hiring cost 5) Firing/layoff cost 6) Backorder/lost sales cost 7) Subcontracting cost
marketing research (judgement-based)
types of costs that must be identified and quantified in aggregate planning
bill of materials (BOM)
the roles of inventory
20. Regular demand patterns of repeating highs and lows
seasonality and cycles
inventory turnover
stable pattern
executive judgment (judgement-based)
21. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
Advantages of high inventory turnover
the roles of inventory
requirements explosion
22. Demand that depends upon decisions made by internal operations managers
stable pattern
Advantages of high inventory turnover
stockout (shortage) cost
dependent demand
23. Expenses incurred due to the fact that inventory is held
independet demand
ABC analysis
autocorrelation
carrying (holding cost)
24. 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
items included in the inventory record
aggregate production plan
Steps of designing a forecasting process
advance planning and scheduling (APS) systems
25. inventory is constantly monitored to decide when a replenishement order needs to be placed
Techniques used to manage inventory
continuous review model
demand forecasting
economic order quantity (EOQ)
26. 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.
forecast accuracy
lot-for-lot (L4L)
Global Trade Item Number (GTIN)
judgement-based forecasting
27. Average size of forecast errors - irrespective of their directions.
planning horizon
planned order receipt
mean absolute deviation / mean absolute error
materials requirements planning (MRP)
28. 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
days of supply
service level
dependent demand
Outputs of materials requirements planning (MRP)
29. The assumption that there is an infinite amount of capacity available
finished goods inventory
infinite loading
time bucket
sales and operations planning (S&OP)
30. Difference between a forecast and the actual demand
materials requirements planning (MRP)
Steps of designing a forecasting process
cycle counting
forecast error
31. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
net requriements
master production schedule (MPS)
trend
cost of a unit stockout
32. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
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33. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
load profile
bill of materials (BOM)
reorder point (ROP)
demand planning
34. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
exponential smoothing (time-series - statistical)
trend
ways to improve demand planning
reorder point (ROP)
35. An event that occurs when no inventory is available
load profile
product cost
stockout
Cost of being overstocked by one unit
36. Replan each period (month or quarter) - for a given number of periods into the future
smoothing coefficient
total system inventory
historical analogy (judgement-based)
rolling planning horizons
37. 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
fixed order quantity (FOQ)
Wastes produced throughout the five product life cycle stages
Steps of designing a forecasting process
38. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
difference between order & setup costs
demand management
important trends influencing operations management and the emergence of business models
total system inventory
39. Simple forecasting approach that assumes that recent history is a good predictor of the near future
naive model (time-series - statistical)
setup cost
master production schedule (MPS)
rought-cut capacity planning
40. 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
planning horizon
aggregate production plan
options to accomplish the objective of a chase plan
demand management
41. 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
moving average (time-series - statistical)
inventory status file
basic questions to answer when planning inventories
42. Correlation of current demand values with past demand values
fixed order quantity (FOQ)
judgement-based forecasting
autocorrelation
Disadvantages when inventory turnover is too high
43. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
collaborative planning - forecasting and replenishment (CPFR)
yield management
sales and operations planning (S&OP)
steps to determine order quantity when quantity discounts are available
44. An order for an amount that covers a fixed period of time
forecast error
assumptions underlying the EOQ formulation
vendor-managed inventory (VIM)
periodic order quantity (POQ)
45. The tendency of a forecasting technique to continually overpredict or underpredict demand.
the expense components of carrying cost
forecast bias / mean forecast error
smoothing coefficient
order interval
46. A strategy that includes some elements of level production and some elements of chase production strategies
assumptions underlying the EOQ formulation
mixed or hybrid strategy
demand management
cost of a unit stockout
47. The ranking of all items of inventory acording to importance
dependent demand inventory systems
ABC analysis
continuous review model
cycle stock
48. The minimum amount needed in the period
focused forecasting
work in process inventory
net requriements
marketing research (judgement-based)
49. 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)
vendor-managed inventory (VIM)
order interval
items included in the inventory record
net requriements
50. Production rate is changed in each period to match the amount of expected demand
chase strategy (aggregate production strategy)
Pareto's law
demand forecasting
fixed order quantity (FOQ)