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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. Extra inventory held to guard against uncertainty in demand or supply
bill of materials (BOM)
periodic order quantity (POQ)
saw-tooth diagram
buffer (safety) stock
2. inventory of an item is stored in two different locations
cycle counting
the roles of inventory
Advantages of high inventory turnover
two-bin system
3. Comparison of production needs to actual capacity
materials requirements planning (MRP)
ways to improve demand planning
planned order receipt
load profile
4. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
items included in the inventory record
Delphi method (judgement-based)
dependent demand inventory systems
independent demand inventory systems
5. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
planned order receipt
independent demand inventory systems
important trends influencing operations management and the emergence of business models
Global Trade Item Number (GTIN)
6. An order for the same amount each time
inventory status file
fixed order quantity (FOQ)
total system inventory
raw materials and components parts
7. inventory that is in the production process
stable pattern
work in process inventory
ABC analysis
smoothing coefficient
8. 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
cycle stock
collaborative planning - forecasting and replenishment (CPFR)
rolling planning horizons
9. Ratio between average inventory and the level of sales: = COGS/Average inventory@cost = Net sales/Average inventory@sales price = Unit sales/Average inventory in units
quantitative ABC analysis procedure
fixed order quantity (FOQ)
inventory turnover
collaborative activities in CPFR
10. 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.
forecast bias / mean forecast error
Impact of lot size restrictions on quantity discounts
marketing research (judgement-based)
seasonality and cycles
11. 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
Outputs of materials requirements planning (MRP)
Hard benefits of S&OP
saw-tooth diagram
ways to improve demand planning
12. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
life cycle analysis
days of supply
collaborative planning - forecasting and replenishment (CPFR)
lot-for-lot (L4L)
13. Production processes halted
two-bin system
impact of raw material and compontent part stockouts
historical analogy (judgement-based)
MRO inventory
14. 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
raw materials and components parts
Three components of resource requirements planning
rolling planning horizons
the expense components of carrying cost
15. Measurement of how closely the forecast aligns with the observations over time
finished goods inventory
demand during lead time
forecast accuracy
forecast error
16. Unit cost + disposal cost - salvage value
planning horizon
forecast bias / mean forecast error
Cost of being overstocked by one unit
collaborative planning - forecasting and replenishment (CPFR)
17. 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
transit inventory
uncertainty period
regression analysis
Disadvantages when inventory turnover is too high
18. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
smoothing coefficient
postponable product
sales and operations planning (S&OP)
work in process inventory
19. The sum of the inventory held across all of the locations in a company
basic questions to answer when planning inventories
available to promise
advance planning and scheduling (APS) systems
total system inventory
20. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
Pareto's law
Advantages of high inventory turnover
sales and operations planning (S&OP)
service level
21. Software that consolidates all of the business planning systems and data throughout an organization
enterprise resource planning (ERP) system
Outputs of materials requirements planning (MRP)
capacity requirements planning (CRP)
chase strategy (aggregate production strategy)
22. Unique ID for a part used by a specific company
lot-for-lot (L4L)
grassroots forecasting (judgement-based)
part number
autocorrelation
23. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
inventory status file
order cost
trend
forecast accuracy
24. An order for the exact amount needed
lot-for-lot (L4L)
life cycle analysis
square root rule
Three components of resource requirements planning
25. Consistent horizontal stream of demands
options to accomplish the objective of a chase plan
stable pattern
gross requirements
planning horizon
26. Administrative expenses and the expenses of rearranging a work center to produce an item
setup cost
master production schedule (MPS)
materials requirements planning (MRP)
inventory
27. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
square root rule
service level policy
executive judgment (judgement-based)
economic order quantity (EOQ)
28. 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
collaborative planning - forecasting and replenishment (CPFR)
fixed order quantity (FOQ)
basic questions to answer when planning inventories
raw materials and components parts
29. Average size of forecast errors - irrespective of their directions.
stable pattern
inefficiencies caused by unpredictably fluctuating customer demand
mean absolute deviation / mean absolute error
service level
30. A strategy that includes some elements of level production and some elements of chase production strategies
Techniques used to manage inventory
mixed or hybrid strategy
nervousness
cost of a unit stockout
31. Determination of replenishement and postioining of finished goods in the distribution network
distribution requirements planning (DRP)
two-bin system
load profile
transit inventory
32. Maintenance - repair and operating supplies
MRO inventory
requirements explosion
capacity requirements planning (CRP)
the expense components of carrying cost
33. An estimation of the availability of the critical resources needed to support the MPS
rought-cut capacity planning
Techniques used to manage inventory
Disadvantages when inventory turnover is too high
lot-for-lot (L4L)
34. 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
days of supply
rules of forecasting
judgement-based forecasting
weighted moving average (time-series - statistical)
35. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
marketing research (judgement-based)
sales and operations planning (S&OP)
capacity requirements planning (CRP)
moving average (time-series - statistical)
36. Minimum level of inventory that triggers the need to order more
work in process inventory
capacity requirements planning (CRP)
collaborative planning - forecasting and replenishment (CPFR)
reorder point (ROP)
37. Management system built around checking and ordering inventory at some regular interval
order interval
Disadvantages when inventory turnover is too high
naive model (time-series - statistical)
periodic review model
38. The entire time period covered by the MPS
planning horizon
saw-tooth diagram
buffer (safety) stock
Outputs of materials requirements planning (MRP)
39. File that contains detailed inventory and procurement records
saw-tooth diagram
inventory status file
uncertainty period
gross requirements
40. A parameter indicating the weight given to the most recent demand
smoothing coefficient
enterprise resource planning (ERP) system
load profile
economic order quantity (EOQ)
41. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
bill of materials (BOM)
two-bin system
steps to determine order quantity when quantity discounts are available
demand management tactics
42. 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
naive model (time-series - statistical)
chase strategy (aggregate production strategy)
work in process inventory
Advantages of high inventory turnover
43. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
business model
single period inventory model
marketing research (judgement-based)
Impact of lot size restrictions on quantity discounts
44. Supply of items held by a firm to meet demand
mean absolute deviation / mean absolute error
types of costs that must be identified and quantified in aggregate planning
Managerial approaches to reducing inventory costs
inventory
45. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
time series and analysis methods
stockout (shortage) cost
two-bin system
order cost
46. Technique that seeks inputs from people who are in close contact with customers and products
grassroots forecasting (judgement-based)
raw materials and components parts
Delphi method (judgement-based)
service level
47. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
inventory
smoothing coefficient
time series and analysis methods
service level
48. The assumption that there is an infinite amount of capacity available
infinite loading
continuous review model
Disadvantages when inventory turnover is too high
types of costs that must be identified and quantified in aggregate planning
49. 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
Steps of designing a forecasting process
demand management tactics
work in process inventory
materials requirements planning (MRP)
50. Regular demand patterns of repeating highs and lows
service level
collaborative planning - forecasting and replenishment (CPFR)
seasonality and cycles
work in process inventory