Test your basic knowledge |

Supply And Logistics

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) Stockout risk up 2) COGS up because of inability to purchase or produce in quantity 3) Purchasing - ordering & receiving time - effort and cost up






2. 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






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






4. The amount of demand that occurs while awaiting receipt of an inventory replenishment order






5. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.






6. inventory of an item is stored in two different locations






7. Forecasting model model that assigns a different weight to each period's demand according to its importance






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)






9. items that are ready for sale to customers






10. 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






11. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization






12. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions






13. 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






14. Extra inventory held to guard against uncertainty in demand or supply






15. Minimum level of inventory that triggers the need to order more






16. 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






17. The amount of an item that is planned to be ordered in a period






18. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle






19. Management systems used when the demand for an item is derived from the demand for some other item






20. Unit cost + disposal cost - salvage value






21. An order for an amount that covers a fixed period of time






22. Process where each item in inventory is physically counted on a routine schedule






23. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)






24. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand






25. File that contains detailed inventory and procurement records






26. Cycle stocks - safety stocks - managing locations - implementing inventory models






27. Order costs are associated with replenishing inventories - while setup costs are associated with producing inventory internally. Both are often considered "fixed" regardless of batch size - although this is not strictly true.






28. How much should be ordered and when?






29. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes






30. Tool created by AT&T for assessing life cycle costs






31. Computing power will double every 18 months while computing cost will decrease by half


32. The sum of the inventory held across all of the locations in a company






33. Forecasting models that compute forecasts using historical data arranged in the order of occurrence






34. An order for the same amount each time






35. The tendency of a forecasting technique to continually overpredict or underpredict demand.






36. The total amount of an end item that is required






37. The assumption that there is an infinite amount of capacity available






38. Difference between a forecast and the actual demand






39. Quantities of each finished product to be completed for each period






40. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing






41. Measurement of how closely the forecast aligns with the observations over time






42. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level






43. Comparison of production needs to actual capacity






44. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures






45. The minimum amount needed in the period






46. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known






47. 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)






48. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies






49. 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.






50. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain