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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. Decision process in which managers predict demand and make operational plans accordingly
aggregate production plan
demand forecasting
regression analysis
yield management
2. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
MRO inventory
Advantages of high inventory turnover
inefficiencies caused by unpredictably fluctuating customer demand
historical analogy (judgement-based)
3. Production rate is changed in each period to match the amount of expected demand
collaborative planning - forecasting and replenishment (CPFR)
chase strategy (aggregate production strategy)
postponable product
options to accomplish the objective of a chase plan
4. Technique that seeks inputs from people who are in close contact with customers and products
grassroots forecasting (judgement-based)
demand management
inventory status file
judgement-based forecasting
5. Consistent horizontal stream of demands
cumulative lead time
Moore's law
executive judgment (judgement-based)
stable pattern
6. An illustration of the pattern of ordering and inventory levels
inventory turnover
Outputs of materials requirements planning (MRP)
demand management
saw-tooth diagram
7. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
Wastes produced throughout the five product life cycle stages
single period inventory model
weighted moving average (time-series - statistical)
Delphi method (judgement-based)
8. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
service level policy
Wastes produced throughout the five product life cycle stages
periodic order quantity (POQ)
Impact of lot size restrictions on quantity discounts
9. 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
vendor-managed inventory (VIM)
causal models vs. simulation models
inventory status file
Outputs of materials requirements planning (MRP)
10. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
forecast error
stockout (shortage) cost
lot-for-lot (L4L)
weighted moving average (time-series - statistical)
11. 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.
nervousness
order cost
planning horizon
judgement-based forecasting
12. Management systems used when the demand for an item is derived from the demand for some other item
order cost
focused forecasting
distribution requirements planning (DRP)
dependent demand inventory systems
13. Average size of forecast errors - irrespective of their directions.
square root rule
two-bin system
yield management
mean absolute deviation / mean absolute error
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
Impact of lot size restrictions on quantity discounts
inventory turnover
Hard benefits of S&OP
bill of materials (BOM)
15. 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)
historical analogy (judgement-based)
demand management
MRO inventory
demand planning
16. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
stockout
dependent demand inventory systems
service level policy
independent demand inventory systems
17. Unique ID for a part used by a specific company
demand management tactics
infinite loading
part number
demand management
18. Replan each period (month or quarter) - for a given number of periods into the future
infinite loading
bill of materials (BOM)
production order quantity
rolling planning horizons
19. Management system built around checking and ordering inventory at some regular interval
periodic review model
distribution requirements planning (DRP)
the expense components of carrying cost
ways to improve demand planning
20. Production processes halted
net requriements
Techniques used to manage inventory
available to promise
impact of raw material and compontent part stockouts
21. 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
inventory status file
exponential smoothing (time-series - statistical)
planned order receipt
Disadvantages when inventory turnover is too high
22. 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
demand management tactics
ways to improve demand planning
enterprise resource planning (ERP) system
setup cost
23. Sum of all relevant inventory costs incurred each year
order interval
ABC analysis
total acquisition cost (TAC)
shift or step change
24. Software that consolidates all of the business planning systems and data throughout an organization
periodic review model
enterprise resource planning (ERP) system
nervousness
business model
25. An order for the exact amount needed
Steps of designing a forecasting process
single period inventory model
the roles of inventory
lot-for-lot (L4L)
26. A parameter indicating the weight given to the most recent demand
stockout
smoothing coefficient
forecast accuracy
demand management tactics
27. Vendor is responsible for managing the inventory located at a customer's facility
measures of inventory performance
distribution requirements planning (DRP)
vendor-managed inventory (VIM)
items included in the inventory record
28. 1) Identify the price breaks on offer 2) Calculate the EOQ at each price break - starting with the lowest 3) Evaluate the feasibility of each EOQ value 4) Calculate the TAC for each feasible EOQ and for the minimum quantity required to attain each p
simulation models
executive judgment (judgement-based)
steps to determine order quantity when quantity discounts are available
stockout
29. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
aggregate production plan
saw-tooth diagram
yield management
causal models vs. simulation models
30. A combination of common sense inputs from frontline personnel and a computer simulation process
focused forecasting
cumulative lead time
stable pattern
Cost of being overstocked by one unit
31. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information
time bucket
ways to improve demand planning
rules of forecasting
reorder point (ROP)
32. 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)
advance planning and scheduling (APS) systems
items included in the inventory record
collaborative planning - forecasting and replenishment (CPFR)
quantitative ABC analysis procedure
33. Model used to determine the order size for a one-time purchase
bullwhip effect
dependent demand inventory systems
single period inventory model
two-bin system
34. Comparison of production needs to actual capacity
load profile
weighted moving average (time-series - statistical)
service level
fixed order quantity (FOQ)
35. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
demand management
cycle counting
Soft benefits of S&OP
moving average (time-series - statistical)
36. Systems that integrate materials and capacity planning into one system
mean absolute deviation / mean absolute error
advance planning and scheduling (APS) systems
important trends influencing operations management and the emergence of business models
production order quantity
37. Computing power will double every 18 months while computing cost will decrease by half
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38. inventory that is in the production process
vendor-managed inventory (VIM)
work in process inventory
bullwhip effect
stable pattern
39. 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
master production schedule (MPS)
forecast error
the financial impact of inventory
raw materials and components parts
40. 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
quantitative ABC analysis procedure
cycle stock
cumulative lead time
Cost of being overstocked by one unit
41. Items bought from suppliers to use in the production of a product
smoothing coefficient
raw materials and components parts
Delphi method (judgement-based)
types of costs that must be identified and quantified in aggregate planning
42. Regular demand patterns of repeating highs and lows
quantitative ABC analysis procedure
forecast error
seasonality and cycles
life cycle analysis
43. The ranking of all items of inventory acording to importance
grassroots forecasting (judgement-based)
ABC analysis
shift or step change
setup cost
44. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
life cycle analysis
Delphi method (judgement-based)
dependent demand inventory systems
45. An order for the same amount each time
master production schedule (MPS)
ways to improve demand planning
life cycle waste assessment matrix (LCWAM)
fixed order quantity (FOQ)
46. Amount paid to suppliers for products that are purchased
product cost
MRO inventory
vendor-managed inventory (VIM)
transit inventory
47. How much should be ordered and when?
collaborative planning - forecasting and replenishment (CPFR)
continuous review model
basic questions to answer when planning inventories
distribution requirements planning (DRP)
48. inconsistencies in the plan causes by changes to the MPS
nervousness
planning horizon
life cycle analysis
Steps of designing a forecasting process
49. Determination of replenishement and postioining of finished goods in the distribution network
regression analysis
collaborative activities in CPFR
distribution requirements planning (DRP)
Moore's law
50. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
finished goods inventory
grassroots forecasting (judgement-based)
time series and analysis methods
seasonality and cycles