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. Unit cost + disposal cost - salvage value






2. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales






3. 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






4. 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






5. A strategy that includes some elements of level production and some elements of chase production strategies






6. Management system built around checking and ordering inventory at some regular interval






7. 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






8. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product






9. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers






10. File that contains detailed inventory and procurement records






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






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






13. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time






14. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans






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






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






17. 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.






18. Simple forecasting approach that assumes that recent history is a good predictor of the near future






19. Average size of forecast errors - irrespective of their directions.






20. 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)






21. 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






22. An order for the same amount each time






23. items that are ready for sale to customers






24. Correlation of current demand values with past demand values






25. A planning system used to ensure the right quantities of materials are available when needed






26. inventory that is in the production process






27. Unique ID for a part used by a specific company






28. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)






29. items in transit from ont location to another






30. 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






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






32. Demand that depends upon decisions made by internal operations managers






33. 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.






34. 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






35. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held






36. Specification of the amount of risk of incurring a stockout that a firm is willing to incur






37. An illustration of the pattern of ordering and inventory levels






38. 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






39. A parameter indicating the weight given to the most recent demand






40. Production processes halted






41. Sum of all relevant inventory costs incurred each year






42. Administrative expenses and the expenses of rearranging a work center to produce an item






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






44. 1) Enhanced teamwork at executive & operating levels 2) Better decisions with less effort and time 3) Better alignment of operational - marketing and financial plans 4) Greater accountability for results 5) Ability to see potential problems sooner






45. The entire time period covered by the MPS






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






47. Determination of replenishement and postioining of finished goods in the distribution network






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






49. A one-time change in demand - susually due to some external influence on demand






50. 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