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






2. 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






3. 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






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






5. 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)






6. The minimum amount needed in the period






7. An estimate of the capacity needed at work centers






8. The total amount of an end item that is required






9. The ranking of all items of inventory acording to importance






10. A strategy that includes some elements of level production and some elements of chase production strategies






11. The longest lead-time path in the BOM






12. An order for the exact amount needed






13. Unit cost + disposal cost - salvage value






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






15. 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






16. 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)






17. Consistent horizontal stream of demands






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






19. The amount of an item that is planned to be ordered in a period






20. 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






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






22. 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






23. Sum of all relevant inventory costs incurred each year






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






25. Unit selling price - unit cost






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






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






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






29. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand






30. An order for the same amount each time






31. Amount paid to suppliers for products that are purchased






32. A fixed time period that passes between inventory reviews






33. A one-time change in demand - susually due to some external influence on demand






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






35. inventory that is in the production process






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






37. 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






38. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.






39. A planning system used to ensure the right quantities of materials are available when needed






40. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost






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






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






43. An estimation of the availability of the critical resources needed to support the MPS






44. 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.






45. How much should be ordered and when?






46. inventory is constantly monitored to decide when a replenishement order needs to be placed






47. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization






48. Systems that integrate materials and capacity planning into one system






49. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle






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