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






2. Forecasting model model that assigns a different weight to each period's demand according to its importance






3. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan






4. Unit selling price - unit cost






5. An order for the exact amount needed






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






7. 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






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






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






10. Extra inventory held to guard against uncertainty in demand or supply






11. Production processes halted






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






13. The determination of how many additional units are needed






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






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






16. Computing power will double every 18 months while computing cost will decrease by half


17. 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)






18. 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






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






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






21. Demand that is created by customers






22. inventory classification - info systems - accurate records






23. 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)






24. 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)






25. 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.






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






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






28. A fixed time period that passes between inventory reviews






29. 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






30. 1) Market planning: intro of new products - store openings/closings - promotions - inventory policies - etc. 2) Demand and resource planning: customer demand & shipping requirements are forecasted 3) Execution: orders are placed - delivered - r






31. 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






32. 1) Extra resources expand and contract capacity to meet varying demand 2) Backlogging of certain orders to smooth out demand fluctuations 3) Customer dissatisfaction with inability to meet all demands 4) Buffering the system with safety stocks - saf






33. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)






34. 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






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






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






37. Unit cost + disposal cost - salvage value






38. File that contains detailed inventory and procurement records






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






40. Maintenance - repair and operating supplies






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






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






43. 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






44. items in transit from ont location to another






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






46. The assumption that there is an infinite amount of capacity available






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






48. The minimum amount needed in the period






49. 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






50. inventory management systems used when the demand for an item is beyond the control of the organization