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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. Process that adjusts prices as demand for a service occurs (or does not occur)
focused forecasting
collaborative planning - forecasting and replenishment (CPFR)
yield management
regression analysis
2. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
sales and operations planning (S&OP)
stockout
assumptions underlying the EOQ formulation
measures of inventory performance
3. inventory of an item is stored in two different locations
focused forecasting
executive judgment (judgement-based)
two-bin system
Hard benefits of S&OP
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)
weighted moving average (time-series - statistical)
service level policy
stable pattern
target service level (TSL)
5. items in transit from ont location to another
inventory
square root rule
transit inventory
Outputs of materials requirements planning (MRP)
6. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
Three components of resource requirements planning
mixed or hybrid strategy
planning horizon
rought-cut capacity planning
7. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
vendor-managed inventory (VIM)
the roles of inventory
options to accomplish the objective of a chase plan
rules of forecasting
8. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
materials requirements planning (MRP)
rought-cut capacity planning
inventory
causal models vs. simulation models
9. 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
raw materials and components parts
service level
assumptions underlying the EOQ formulation
smoothing coefficient
10. A combination of common sense inputs from frontline personnel and a computer simulation process
advance planning and scheduling (APS) systems
MRO inventory
Global Trade Item Number (GTIN)
focused forecasting
11. Simple forecasting approach that assumes that recent history is a good predictor of the near future
naive model (time-series - statistical)
reorder point (ROP)
periodic order quantity (POQ)
economic order quantity (EOQ)
12. inconsistencies in the plan causes by changes to the MPS
collaborative planning - forecasting and replenishment (CPFR)
nervousness
setup cost
collaborative planning - forecasting and replenishment (CPFR)
13. 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
rought-cut capacity planning
cost of a unit stockout
Advantages of high inventory turnover
Techniques used to manage inventory
14. 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
the financial impact of inventory
regression analysis
days of supply
judgement-based forecasting
15. 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
planned order release
carrying (holding cost)
collaborative planning - forecasting and replenishment (CPFR)
Three components of resource requirements planning
16. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
life cycle analysis
available to promise
Soft benefits of S&OP
exponential smoothing (time-series - statistical)
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
Disadvantages when inventory turnover is too high
cost of a unit stockout
available to promise
Cost of being overstocked by one unit
18. The minimum amount needed in the period
impact of raw material and compontent part stockouts
net requriements
requirements explosion
postponable product
19. Demand that depends upon decisions made by internal operations managers
dependent demand
focused forecasting
planned order receipt
demand during lead time
20. The longest lead-time path in the BOM
assumptions underlying the EOQ formulation
service level policy
cumulative lead time
forecast bias / mean forecast error
21. The amount of an item that is planned to be ordered in a period
planned order release
service level
historical analogy (judgement-based)
lot-for-lot (L4L)
22. Measurement of how closely the forecast aligns with the observations over time
service level
forecast accuracy
saw-tooth diagram
bill of materials (BOM)
23. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
finished goods inventory
measures of inventory performance
marketing research (judgement-based)
vendor-managed inventory (VIM)
24. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
Global Trade Item Number (GTIN)
Wastes produced throughout the five product life cycle stages
items included in the inventory record
Three components of resource requirements planning
25. Replan each period (month or quarter) - for a given number of periods into the future
independet demand
rolling planning horizons
assumptions underlying the EOQ formulation
load profile
26. Management systems used when the demand for an item is derived from the demand for some other item
fixed order quantity (FOQ)
historical analogy (judgement-based)
dependent demand inventory systems
steps to determine order quantity when quantity discounts are available
27. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
cycle counting
the financial impact of inventory
Wastes produced throughout the five product life cycle stages
collaborative planning - forecasting and replenishment (CPFR)
28. An order for an amount that covers a fixed period of time
capacity requirements planning (CRP)
two-bin system
items included in the inventory record
periodic order quantity (POQ)
29. Administrative expenses and the expenses of rearranging a work center to produce an item
independent demand inventory systems
chase strategy (aggregate production strategy)
setup cost
historical analogy (judgement-based)
30. Model used to determine the order size for a one-time purchase
capacity requirements planning (CRP)
mixed or hybrid strategy
single period inventory model
Steps of designing a forecasting process
31. Tool created by AT&T for assessing life cycle costs
time bucket
assumptions underlying the EOQ formulation
measures of inventory performance
life cycle waste assessment matrix (LCWAM)
32. 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
shift or step change
focused forecasting
Techniques used to manage inventory
Soft benefits of S&OP
33. Forecasting techniques that use input from high-level experienced managers
simulation models
mixed or hybrid strategy
executive judgment (judgement-based)
buffer (safety) stock
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
periodic review model
rolling planning horizons
nervousness
Steps of designing a forecasting process
35. Demand that is created by customers
independet demand
distribution requirements planning (DRP)
planned order receipt
level production strategy (aggregate production strategy)
36. 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
rules of forecasting
demand planning
stockout (shortage) cost
planned order receipt
37. inventory classification - info systems - accurate records
Techniques used to manage inventory
smoothing coefficient
demand management
Hard benefits of S&OP
38. 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)
demand planning
rules of forecasting
enterprise resource planning (ERP) system
smoothing coefficient
39. The assumption that there is an infinite amount of capacity available
periodic order quantity (POQ)
life cycle waste assessment matrix (LCWAM)
infinite loading
independent demand inventory systems
40. Vendor is responsible for managing the inventory located at a customer's facility
vendor-managed inventory (VIM)
distribution requirements planning (DRP)
dependent demand inventory systems
demand management tactics
41. 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.
quantitative ABC analysis procedure
total system inventory
judgement-based forecasting
assumptions underlying the EOQ formulation
42. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
collaborative activities in CPFR
grassroots forecasting (judgement-based)
exponential smoothing (time-series - statistical)
time series and analysis methods
43. Systems that integrate materials and capacity planning into one system
seasonality and cycles
total acquisition cost (TAC)
collaborative activities in CPFR
advance planning and scheduling (APS) systems
44. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information
business model
important trends influencing operations management and the emergence of business models
time series and analysis methods
ways to improve demand planning
45. 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.
the roles of inventory
periodic order quantity (POQ)
Impact of lot size restrictions on quantity discounts
Pareto's law
46. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
the expense components of carrying cost
demand during lead time
MRO inventory
life cycle analysis
47. Comparison of production needs to actual capacity
judgement-based forecasting
load profile
inventory status file
reorder point (ROP)
48. A one-time change in demand - susually due to some external influence on demand
forecast error
shift or step change
part number
the roles of inventory
49. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
basic questions to answer when planning inventories
options to accomplish the objective of a chase plan
aggregate production plan
smoothing coefficient
50. Difference between a forecast and the actual demand
forecast error
forecast accuracy
Cost of being overstocked by one unit
items included in the inventory record