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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. Management system built around checking and ordering inventory at some regular interval
total system inventory
planned order release
nervousness
periodic review model
2. Quantities of each finished product to be completed for each period
moving average (time-series - statistical)
master production schedule (MPS)
Disadvantages when inventory turnover is too high
stable pattern
3. Technique that seeks inputs from people who are in close contact with customers and products
grassroots forecasting (judgement-based)
continuous review model
focused forecasting
independent demand inventory systems
4. The probability of meeting all demand for an item = cost of a unit stockout / (cost of a unit stockout + cost of being overstocked by one unit)
distribution requirements planning (DRP)
executive judgment (judgement-based)
rought-cut capacity planning
target service level (TSL)
5. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle
two-bin system
life cycle analysis
rought-cut capacity planning
options to accomplish the objective of a chase plan
6. 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
options to accomplish the objective of a chase plan
economic order quantity (EOQ)
service level policy
quantitative ABC analysis procedure
7. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
gross requirements
days of supply
stockout (shortage) cost
autocorrelation
8. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
moving average (time-series - statistical)
forecast bias / mean forecast error
continuous review model
chase strategy (aggregate production strategy)
9. 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
order interval
options to accomplish the objective of a chase plan
stockout
demand management tactics
10. inventory classification - info systems - accurate records
quantitative ABC analysis procedure
Disadvantages when inventory turnover is too high
moving average (time-series - statistical)
Techniques used to manage inventory
11. 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
Advantages of high inventory turnover
measures of inventory performance
level production strategy (aggregate production strategy)
capacity requirements planning (CRP)
12. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
bullwhip effect
economic order quantity (EOQ)
master production schedule (MPS)
Delphi method (judgement-based)
13. The amount that is planned to arrive at the beginning of a period
options to accomplish the objective of a chase plan
planned order receipt
Outputs of materials requirements planning (MRP)
cumulative lead time
14. inconsistencies in the plan causes by changes to the MPS
raw materials and components parts
load profile
nervousness
measures of inventory performance
15. Unit cost + disposal cost - salvage value
moving average (time-series - statistical)
Cost of being overstocked by one unit
cost of a unit stockout
regression analysis
16. The firm produces at a constant rate over the year
forecast bias / mean forecast error
level production strategy (aggregate production strategy)
shift or step change
Pareto's law
17. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
bill of materials (BOM)
service level policy
the financial impact of inventory
total acquisition cost (TAC)
18. Model used to determine the order size for a one-time purchase
Soft benefits of S&OP
causal models vs. simulation models
Global Trade Item Number (GTIN)
single period inventory model
19. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
square root rule
causal models vs. simulation models
setup cost
options to accomplish the objective of a chase plan
20. An order for the exact amount needed
forecast accuracy
lot-for-lot (L4L)
time bucket
grassroots forecasting (judgement-based)
21. Vendor is responsible for managing the inventory located at a customer's facility
vendor-managed inventory (VIM)
types of costs that must be identified and quantified in aggregate planning
trend
quantitative ABC analysis procedure
22. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
order interval
Disadvantages when inventory turnover is too high
two-bin system
23. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
mean absolute deviation / mean absolute error
square root rule
causal models vs. simulation models
Global Trade Item Number (GTIN)
24. A fixed time period that passes between inventory reviews
saw-tooth diagram
causal models vs. simulation models
order interval
types of costs that must be identified and quantified in aggregate planning
25. Consistent horizontal stream of demands
MRO inventory
capacity requirements planning (CRP)
stable pattern
master production schedule (MPS)
26. The assumption that there is an infinite amount of capacity available
bill of materials (BOM)
infinite loading
seasonality and cycles
independet demand
27. An estimate of the capacity needed at work centers
planned order receipt
capacity requirements planning (CRP)
bill of materials (BOM)
ways to improve demand planning
28. 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
options to accomplish the objective of a chase plan
order cost
Hard benefits of S&OP
chase strategy (aggregate production strategy)
29. Forecasting techniques that use input from high-level experienced managers
executive judgment (judgement-based)
exponential smoothing (time-series - statistical)
single period inventory model
dependent demand inventory systems
30. The minimum amount needed in the period
uncertainty period
total system inventory
inventory turnover
net requriements
31. 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)
demand forecasting
collaborative activities in CPFR
naive model (time-series - statistical)
32. 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
business model
Disadvantages when inventory turnover is too high
two-bin system
total acquisition cost (TAC)
33. Administrative expenses and the expenses of rearranging a work center to produce an item
assumptions underlying the EOQ formulation
setup cost
planned order release
Disadvantages when inventory turnover is too high
34. inventory is constantly monitored to decide when a replenishement order needs to be placed
demand management tactics
the financial impact of inventory
continuous review model
yield management
35. 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
Advantages of high inventory turnover
demand management
assumptions underlying the EOQ formulation
vendor-managed inventory (VIM)
36. Replan each period (month or quarter) - for a given number of periods into the future
Pareto's law
service level
product cost
rolling planning horizons
37. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
exponential smoothing (time-series - statistical)
uncertainty period
continuous review model
economic order quantity (EOQ)
38. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
cumulative lead time
part number
Global Trade Item Number (GTIN)
impact of raw material and compontent part stockouts
39. The part of panned production that is not committed to a customer
infinite loading
Three components of resource requirements planning
product cost
available to promise
40. Forecasting model model that assigns a different weight to each period's demand according to its importance
demand management tactics
types of costs that must be identified and quantified in aggregate planning
nervousness
weighted moving average (time-series - statistical)
41. Average size of forecast errors - irrespective of their directions.
mean absolute deviation / mean absolute error
transit inventory
assumptions underlying the EOQ formulation
focused forecasting
42. Unique ID for a part used by a specific company
capacity requirements planning (CRP)
Managerial approaches to reducing inventory costs
two-bin system
part number
43. How much should be ordered and when?
infinite loading
life cycle waste assessment matrix (LCWAM)
setup cost
basic questions to answer when planning inventories
44. Demand that is created by customers
production order quantity
demand management
steps to determine order quantity when quantity discounts are available
independet demand
45. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
Advantages of high inventory turnover
total acquisition cost (TAC)
seasonality and cycles
trend
46. Simple forecasting approach that assumes that recent history is a good predictor of the near future
difference between order & setup costs
mixed or hybrid strategy
naive model (time-series - statistical)
Global Trade Item Number (GTIN)
47. A strategy that includes some elements of level production and some elements of chase production strategies
executive judgment (judgement-based)
cycle stock
mean absolute deviation / mean absolute error
mixed or hybrid strategy
48. Items bought from suppliers to use in the production of a product
yield management
important trends influencing operations management and the emergence of business models
forecast accuracy
raw materials and components parts
49. Decision process in which managers predict demand and make operational plans accordingly
demand forecasting
grassroots forecasting (judgement-based)
service level policy
distribution requirements planning (DRP)
50. Correlation of current demand values with past demand values
carrying (holding cost)
trend
autocorrelation
inventory turnover