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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. A planning system used to ensure the right quantities of materials are available when needed
two-bin system
planned order receipt
materials requirements planning (MRP)
cycle stock
2. A strategy that includes some elements of level production and some elements of chase production strategies
items included in the inventory record
mixed or hybrid strategy
time series and analysis methods
part number
3. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
level production strategy (aggregate production strategy)
simulation models
stable pattern
Global Trade Item Number (GTIN)
4. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
economic order quantity (EOQ)
two-bin system
options to accomplish the objective of a chase plan
rules of forecasting
5. Demand that is created by customers
days of supply
ways to improve demand planning
independet demand
distribution requirements planning (DRP)
6. Unit cost + disposal cost - salvage value
demand planning
mixed or hybrid strategy
Cost of being overstocked by one unit
work in process inventory
7. Production processes halted
service level
impact of raw material and compontent part stockouts
saw-tooth diagram
cost of a unit stockout
8. The determination of how many additional units are needed
measures of inventory performance
requirements explosion
forecast error
raw materials and components parts
9. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
Steps of designing a forecasting process
distribution requirements planning (DRP)
service level policy
stockout
10. Sum of all relevant inventory costs incurred each year
two-bin system
exponential smoothing (time-series - statistical)
total acquisition cost (TAC)
requirements explosion
11. An event that occurs when no inventory is available
cumulative lead time
stockout (shortage) cost
stockout
finished goods inventory
12. Simple forecasting approach that assumes that recent history is a good predictor of the near future
finished goods inventory
Moore's law
seasonality and cycles
naive model (time-series - statistical)
13. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
total acquisition cost (TAC)
stockout (shortage) cost
the roles of inventory
available to promise
14. A period of time when an unknown amount of inventory is on hand
inventory
vendor-managed inventory (VIM)
uncertainty period
shift or step change
15. Average size of forecast errors - irrespective of their directions.
postponable product
mean absolute deviation / mean absolute error
vendor-managed inventory (VIM)
focused forecasting
16. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
master production schedule (MPS)
rolling planning horizons
buffer (safety) stock
moving average (time-series - statistical)
17. Amount paid to suppliers for products that are purchased
product cost
forecast bias / mean forecast error
collaborative planning - forecasting and replenishment (CPFR)
ABC analysis
18. Maintenance - repair and operating supplies
Wastes produced throughout the five product life cycle stages
independet demand
MRO inventory
service level
19. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
service level policy
total system inventory
part number
marketing research (judgement-based)
20. 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
planning horizon
lot-for-lot (L4L)
single period inventory model
demand management tactics
21. 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
net requriements
saw-tooth diagram
inventory
options to accomplish the objective of a chase plan
22. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
historical analogy (judgement-based)
cycle counting
focused forecasting
inventory status file
23. Determination of replenishement and postioining of finished goods in the distribution network
order interval
distribution requirements planning (DRP)
Outputs of materials requirements planning (MRP)
ABC analysis
24. 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
distribution requirements planning (DRP)
Impact of lot size restrictions on quantity discounts
Advantages of high inventory turnover
production order quantity
25. 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
business model
ABC analysis
two-bin system
finished goods inventory
26. Items bought from suppliers to use in the production of a product
the expense components of carrying cost
life cycle analysis
simulation models
raw materials and components parts
27. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
steps to determine order quantity when quantity discounts are available
raw materials and components parts
production order quantity
naive model (time-series - statistical)
28. Computing power will double every 18 months while computing cost will decrease by half
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29. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
measures of inventory performance
sales and operations planning (S&OP)
causal models vs. simulation models
days of supply
30. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
collaborative planning - forecasting and replenishment (CPFR)
naive model (time-series - statistical)
Three components of resource requirements planning
assumptions underlying the EOQ formulation
31. The entire time period covered by the MPS
Moore's law
business model
level production strategy (aggregate production strategy)
planning horizon
32. Supply of items held by a firm to meet demand
distribution requirements planning (DRP)
inventory
Cost of being overstocked by one unit
smoothing coefficient
33. Expenses incurred due to the fact that inventory is held
distribution requirements planning (DRP)
Managerial approaches to reducing inventory costs
ABC analysis
carrying (holding cost)
34. Forecasting techniques that use input from high-level experienced managers
smoothing coefficient
executive judgment (judgement-based)
historical analogy (judgement-based)
business model
35. Software that consolidates all of the business planning systems and data throughout an organization
enterprise resource planning (ERP) system
life cycle waste assessment matrix (LCWAM)
materials requirements planning (MRP)
continuous review model
36. 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)
autocorrelation
impact of raw material and compontent part stockouts
rolling planning horizons
items included in the inventory record
37. The sum of the inventory held across all of the locations in a company
available to promise
stable pattern
demand planning
total system inventory
38. An order for the exact amount needed
materials requirements planning (MRP)
grassroots forecasting (judgement-based)
lot-for-lot (L4L)
measures of inventory performance
39. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
grassroots forecasting (judgement-based)
Delphi method (judgement-based)
order interval
part number
40. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
infinite loading
bill of materials (BOM)
naive model (time-series - statistical)
bullwhip effect
41. Regular demand patterns of repeating highs and lows
Three components of resource requirements planning
aggregate production plan
seasonality and cycles
Disadvantages when inventory turnover is too high
42. 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
load profile
inventory turnover
level production strategy (aggregate production strategy)
mixed or hybrid strategy
43. 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
square root rule
dependent demand inventory systems
Disadvantages when inventory turnover is too high
collaborative planning - forecasting and replenishment (CPFR)
44. inventory that is in the production process
Wastes produced throughout the five product life cycle stages
work in process inventory
inefficiencies caused by unpredictably fluctuating customer demand
focused forecasting
45. The assumption that there is an infinite amount of capacity available
gross requirements
infinite loading
difference between order & setup costs
sales and operations planning (S&OP)
46. 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
Three components of resource requirements planning
marketing research (judgement-based)
important trends influencing operations management and the emergence of business models
Soft benefits of S&OP
47. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
Pareto's law
raw materials and components parts
Global Trade Item Number (GTIN)
basic questions to answer when planning inventories
48. The longest lead-time path in the BOM
cumulative lead time
demand planning
transit inventory
Wastes produced throughout the five product life cycle stages
49. items in transit from ont location to another
rolling planning horizons
time bucket
transit inventory
economic order quantity (EOQ)
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
mixed or hybrid strategy
total system inventory
sales and operations planning (S&OP)
periodic review model