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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. A strategy that includes some elements of level production and some elements of chase production strategies
two-bin system
mixed or hybrid strategy
seasonality and cycles
naive model (time-series - statistical)
2. 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
types of costs that must be identified and quantified in aggregate planning
available to promise
life cycle analysis
lot-for-lot (L4L)
3. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
Managerial approaches to reducing inventory costs
yield management
exponential smoothing (time-series - statistical)
causal models vs. simulation models
4. An order for the same amount each time
load profile
work in process inventory
cycle stock
fixed order quantity (FOQ)
5. The sum of the inventory held across all of the locations in a company
days of supply
total system inventory
seasonality and cycles
grassroots forecasting (judgement-based)
6. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
cost of a unit stockout
basic questions to answer when planning inventories
mean absolute deviation / mean absolute error
Delphi method (judgement-based)
7. Correlation of current demand values with past demand values
autocorrelation
demand management
the expense components of carrying cost
the financial impact of inventory
8. A one-time change in demand - susually due to some external influence on demand
raw materials and components parts
shift or step change
Hard benefits of S&OP
production order quantity
9. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
demand forecasting
demand during lead time
fixed order quantity (FOQ)
rules of forecasting
10. Average size of forecast errors - irrespective of their directions.
Disadvantages when inventory turnover is too high
transit inventory
mean absolute deviation / mean absolute error
infinite loading
11. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
load profile
Cost of being overstocked by one unit
product cost
the roles of inventory
12. The longest lead-time path in the BOM
cumulative lead time
Techniques used to manage inventory
forecast error
weighted moving average (time-series - statistical)
13. The part of panned production that is not committed to a customer
available to promise
basic questions to answer when planning inventories
Three components of resource requirements planning
important trends influencing operations management and the emergence of business models
14. 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
days of supply
collaborative planning - forecasting and replenishment (CPFR)
postponable product
Techniques used to manage inventory
15. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
square root rule
ABC analysis
reorder point (ROP)
Techniques used to manage inventory
16. Difference between a forecast and the actual demand
simulation models
Steps of designing a forecasting process
forecast error
Soft benefits of S&OP
17. Forecasting techniques that use input from high-level experienced managers
executive judgment (judgement-based)
Managerial approaches to reducing inventory costs
inventory turnover
independent demand inventory systems
18. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
impact of raw material and compontent part stockouts
Disadvantages when inventory turnover is too high
periodic order quantity (POQ)
moving average (time-series - statistical)
19. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
bullwhip effect
stockout (shortage) cost
demand management tactics
independet demand
20. Simple forecasting approach that assumes that recent history is a good predictor of the near future
naive model (time-series - statistical)
lot-for-lot (L4L)
Pareto's law
inefficiencies caused by unpredictably fluctuating customer demand
21. 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
assumptions underlying the EOQ formulation
planned order receipt
basic questions to answer when planning inventories
naive model (time-series - statistical)
22. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
time bucket
demand during lead time
rolling planning horizons
marketing research (judgement-based)
23. Production processes halted
time series and analysis methods
impact of raw material and compontent part stockouts
the financial impact of inventory
Moore's law
24. 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
types of costs that must be identified and quantified in aggregate planning
yield management
focused forecasting
the financial impact of inventory
25. An order for the exact amount needed
seasonality and cycles
marketing research (judgement-based)
lot-for-lot (L4L)
fixed order quantity (FOQ)
26. The total amount of an end item that is required
cost of a unit stockout
raw materials and components parts
focused forecasting
gross requirements
27. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
time bucket
production order quantity
two-bin system
single period inventory model
28. The tendency of a forecasting technique to continually overpredict or underpredict demand.
steps to determine order quantity when quantity discounts are available
forecast bias / mean forecast error
mean absolute deviation / mean absolute error
Techniques used to manage inventory
29. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
demand planning
aggregate production plan
bullwhip effect
planning horizon
30. Process where each item in inventory is physically counted on a routine schedule
MRO inventory
cycle counting
life cycle waste assessment matrix (LCWAM)
grassroots forecasting (judgement-based)
31. The ranking of all items of inventory acording to importance
ABC analysis
master production schedule (MPS)
enterprise resource planning (ERP) system
simulation models
32. 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
part number
target service level (TSL)
naive model (time-series - statistical)
33. 1) Stockout risk up 2) COGS up because of inability to purchase or produce in quantity 3) Purchasing - ordering & receiving time - effort and cost up
nervousness
Disadvantages when inventory turnover is too high
master production schedule (MPS)
cycle stock
34. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information
demand forecasting
net requriements
ways to improve demand planning
life cycle waste assessment matrix (LCWAM)
35. Supply of items held by a firm to meet demand
inventory
steps to determine order quantity when quantity discounts are available
postponable product
smoothing coefficient
36. Tool created by AT&T for assessing life cycle costs
life cycle waste assessment matrix (LCWAM)
difference between order & setup costs
yield management
capacity requirements planning (CRP)
37. 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
product cost
Cost of being overstocked by one unit
quantitative ABC analysis procedure
demand management
38. Demand that is created by customers
bullwhip effect
focused forecasting
independet demand
ABC analysis
39. The minimum amount needed in the period
net requriements
dependent demand
service level
product cost
40. Amount paid to suppliers for products that are purchased
product cost
periodic review model
shift or step change
cumulative lead time
41. A parameter indicating the weight given to the most recent demand
smoothing coefficient
mean absolute deviation / mean absolute error
trend
cycle stock
42. Forecasting model model that assigns a different weight to each period's demand according to its importance
weighted moving average (time-series - statistical)
service level
dependent demand inventory systems
finished goods inventory
43. items that are ready for sale to customers
demand management
Outputs of materials requirements planning (MRP)
causal models vs. simulation models
finished goods inventory
44. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
Three components of resource requirements planning
life cycle waste assessment matrix (LCWAM)
independet demand
sales and operations planning (S&OP)
45. Comparison of production needs to actual capacity
postponable product
buffer (safety) stock
quantitative ABC analysis procedure
load profile
46. A mathematical approach for fitting an equation to a set of data
rules of forecasting
regression analysis
forecast accuracy
quantitative ABC analysis procedure
47. Management systems used when the demand for an item is derived from the demand for some other item
dependent demand inventory systems
continuous review model
mixed or hybrid strategy
executive judgment (judgement-based)
48. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
inventory
impact of raw material and compontent part stockouts
forecast error
demand management
49. Items bought from suppliers to use in the production of a product
raw materials and components parts
Pareto's law
net requriements
demand management
50. 1) Improved forecast accuracy 2) Higher customer service with lower finished goods inventory levels due to better forecasts and coordination fo supply with demand 3) More stable supply rates -> Higher productivity for purchasing - suppliers and oper
types of costs that must be identified and quantified in aggregate planning
time series and analysis methods
days of supply
Hard benefits of S&OP