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. 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.






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






3. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion






4. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information






5. Measure of how well the objective of meeting customer demand is met: usually in terms of # or % of inventory items for which there is no inventory on hand






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






7. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level






8. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)






9. 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






10. The minimum amount needed in the period






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






12. 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






13. Consistent horizontal stream of demands






14. An order for the same amount each time






15. 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.






16. items in transit from ont location to another






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






18. 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






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






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






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






22. 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)






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






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






25. 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






26. 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






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






28. Vendor is responsible for managing the inventory located at a customer's facility






29. A period of time when an unknown amount of inventory is on hand






30. 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.






31. 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






32. Production processes halted






33. 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






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






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






36. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company

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






38. The portion of average inventory determined as order quantity divided by two






39. 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)






40. 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






41. 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)






42. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known






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






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






45. Forecasting techniques that use input from high-level experienced managers






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






47. 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






48. The amount that is planned to arrive at the beginning of a period






49. Process where each item in inventory is physically counted on a routine schedule






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