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






2. 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)






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






4. 1) Opportunity cost - including cost of capital 2) Owning/maintaining storage space 3) Taxes 4) Insurance 5) Obsolescence and loss 6) Materials handling - tracking - management






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






6. 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






7. Tool created by AT&T for assessing life cycle costs






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






9. An event that occurs when no inventory is available






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






11. 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






12. 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






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






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






15. 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)






16. Unit cost + disposal cost - salvage value






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






18. 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






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






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






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






22. A combination of common sense inputs from frontline personnel and a computer simulation process






23. Correlation of current demand values with past demand values






24. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling






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






26. 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






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






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






29. Unit selling price - unit cost






30. An order for the exact amount needed






31. 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.






32. 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.






33. 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






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






35. items that are ready for sale to customers






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






37. 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






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






39. 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






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






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






42. 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






43. 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






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






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






46. Regular demand patterns of repeating highs and lows






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






48. inventory of an item is stored in two different locations






49. The longest lead-time path in the BOM






50. Average size of forecast errors - irrespective of their directions.