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. An event that occurs when no inventory is available






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






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






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






5. Decision process in which managers predict demand and make operational plans accordingly






6. 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)






7. Maintenance - repair and operating supplies






8. The entire time period covered by the MPS






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






10. 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.






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






12. inventory classification - info systems - accurate records






13. Technique that seeks inputs from people who are in close contact with customers and products






14. 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






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






16. 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






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






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






19. Replan each period (month or quarter) - for a given number of periods into the future






20. 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






21. Correlation of current demand values with past demand values






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






23. An order for the same amount each time






24. The determination of how many additional units are needed






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






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






27. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods






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






29. An estimation of the availability of the critical resources needed to support the MPS






30. inconsistencies in the plan causes by changes to the MPS






31. 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






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






33. Production rate is changed in each period to match the amount of expected demand






34. How much should be ordered and when?






35. An order for the exact amount needed






36. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain






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






38. Supply of items held by a firm to meet demand






39. Process that adjusts prices as demand for a service occurs (or does not occur)






40. Proactive approach in which managers attempt to influence either the pattern or consistency of demand






41. Demand that is created by customers






42. Consistent horizontal stream of demands






43. File that contains detailed inventory and procurement records






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






45. Items bought from suppliers to use in the production of a product






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






47. The firm produces at a constant rate over the year






48. Model used to determine the order size for a one-time purchase






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






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