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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. 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
inventory turnover
demand management
bill of materials (BOM)
cycle stock
2. Average size of forecast errors - irrespective of their directions.
causal models vs. simulation models
mean absolute deviation / mean absolute error
cycle counting
Advantages of high inventory turnover
3. Software that consolidates all of the business planning systems and data throughout an organization
sales and operations planning (S&OP)
enterprise resource planning (ERP) system
two-bin system
advance planning and scheduling (APS) systems
4. Minimum level of inventory that triggers the need to order more
ways to improve demand planning
collaborative planning - forecasting and replenishment (CPFR)
cycle stock
reorder point (ROP)
5. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
measures of inventory performance
yield management
finished goods inventory
Three components of resource requirements planning
6. 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
Impact of lot size restrictions on quantity discounts
Outputs of materials requirements planning (MRP)
yield management
postponable product
7. 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
collaborative activities in CPFR
Global Trade Item Number (GTIN)
bullwhip effect
postponable product
8. inventory is constantly monitored to decide when a replenishement order needs to be placed
continuous review model
Global Trade Item Number (GTIN)
finished goods inventory
life cycle analysis
9. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
vendor-managed inventory (VIM)
square root rule
autocorrelation
the expense components of carrying cost
10. 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
dependent demand inventory systems
assumptions underlying the EOQ formulation
causal models vs. simulation models
materials requirements planning (MRP)
11. inventory of an item is stored in two different locations
two-bin system
total acquisition cost (TAC)
judgement-based forecasting
yield management
12. Administrative expenses and the expenses of rearranging a work center to produce an item
days of supply
net requriements
setup cost
options to accomplish the objective of a chase plan
13. Simple forecasting approach that assumes that recent history is a good predictor of the near future
bullwhip effect
mixed or hybrid strategy
naive model (time-series - statistical)
impact of raw material and compontent part stockouts
14. Maintenance - repair and operating supplies
quantitative ABC analysis procedure
dependent demand
MRO inventory
time series and analysis methods
15. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
demand planning
exponential smoothing (time-series - statistical)
dependent demand
Hard benefits of S&OP
16. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
historical analogy (judgement-based)
important trends influencing operations management and the emergence of business models
Steps of designing a forecasting process
focused forecasting
17. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
time bucket
collaborative planning - forecasting and replenishment (CPFR)
steps to determine order quantity when quantity discounts are available
cycle stock
18. items in transit from ont location to another
transit inventory
options to accomplish the objective of a chase plan
capacity requirements planning (CRP)
distribution requirements planning (DRP)
19. Management system built around checking and ordering inventory at some regular interval
total acquisition cost (TAC)
Techniques used to manage inventory
periodic review model
gross requirements
20. The sum of the inventory held across all of the locations in a company
Three components of resource requirements planning
order cost
total system inventory
weighted moving average (time-series - statistical)
21. 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
Hard benefits of S&OP
setup cost
cost of a unit stockout
Wastes produced throughout the five product life cycle stages
22. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
target service level (TSL)
moving average (time-series - statistical)
causal models vs. simulation models
difference between order & setup costs
23. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
economic order quantity (EOQ)
MRO inventory
the roles of inventory
moving average (time-series - statistical)
24. 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
simulation models
rules of forecasting
the financial impact of inventory
types of costs that must be identified and quantified in aggregate planning
25. Extra inventory held to guard against uncertainty in demand or supply
forecast error
square root rule
fixed order quantity (FOQ)
buffer (safety) stock
26. 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
collaborative planning - forecasting and replenishment (CPFR)
reorder point (ROP)
stable pattern
27. A strategy that includes some elements of level production and some elements of chase production strategies
collaborative activities in CPFR
options to accomplish the objective of a chase plan
mixed or hybrid strategy
cycle stock
28. 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
bill of materials (BOM)
shift or step change
service level
types of costs that must be identified and quantified in aggregate planning
29. Regular demand patterns of repeating highs and lows
seasonality and cycles
service level
impact of raw material and compontent part stockouts
advance planning and scheduling (APS) systems
30. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
dependent demand
exponential smoothing (time-series - statistical)
postponable product
level production strategy (aggregate production strategy)
31. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
the financial impact of inventory
yield management
stockout (shortage) cost
product cost
32. An order for the same amount each time
Disadvantages when inventory turnover is too high
important trends influencing operations management and the emergence of business models
fixed order quantity (FOQ)
dependent demand
33. The determination of how many additional units are needed
demand during lead time
autocorrelation
requirements explosion
Techniques used to manage inventory
34. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
planned order release
quantitative ABC analysis procedure
items included in the inventory record
aggregate production plan
35. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
distribution requirements planning (DRP)
work in process inventory
nervousness
bullwhip effect
36. Consistent horizontal stream of demands
stable pattern
smoothing coefficient
Soft benefits of S&OP
measures of inventory performance
37. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
order cost
postponable product
aggregate production plan
production order quantity
38. Sum of all relevant inventory costs incurred each year
total acquisition cost (TAC)
Three components of resource requirements planning
advance planning and scheduling (APS) systems
postponable product
39. Process where each item in inventory is physically counted on a routine schedule
Outputs of materials requirements planning (MRP)
Managerial approaches to reducing inventory costs
the expense components of carrying cost
cycle counting
40. Replan each period (month or quarter) - for a given number of periods into the future
difference between order & setup costs
inventory turnover
MRO inventory
rolling planning horizons
41. Items bought from suppliers to use in the production of a product
work in process inventory
total system inventory
product cost
raw materials and components parts
42. The assumption that there is an infinite amount of capacity available
stable pattern
collaborative planning - forecasting and replenishment (CPFR)
quantitative ABC analysis procedure
infinite loading
43. Measurement of how closely the forecast aligns with the observations over time
demand management tactics
distribution requirements planning (DRP)
work in process inventory
forecast accuracy
44. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
continuous review model
days of supply
nervousness
total system inventory
45. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
infinite loading
inventory turnover
trend
regression analysis
46. Correlation of current demand values with past demand values
Three components of resource requirements planning
Impact of lot size restrictions on quantity discounts
order interval
autocorrelation
47. Unit selling price - unit cost
total acquisition cost (TAC)
nervousness
cost of a unit stockout
the financial impact of inventory
48. An estimate of the capacity needed at work centers
rules of forecasting
capacity requirements planning (CRP)
assumptions underlying the EOQ formulation
planned order receipt
49. 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
part number
types of costs that must be identified and quantified in aggregate planning
Wastes produced throughout the five product life cycle stages
rolling planning horizons
50. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
enterprise resource planning (ERP) system
causal models vs. simulation models
moving average (time-series - statistical)
Delphi method (judgement-based)