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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. 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
rules of forecasting
demand planning
nervousness
planning horizon
2. Administrative expenses and the expenses of rearranging a work center to produce an item
time bucket
setup cost
target service level (TSL)
shift or step change
3. 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
gross requirements
Moore's law
historical analogy (judgement-based)
Disadvantages when inventory turnover is too high
4. The assumption that there is an infinite amount of capacity available
assumptions underlying the EOQ formulation
basic questions to answer when planning inventories
naive model (time-series - statistical)
infinite loading
5. An estimation of the availability of the critical resources needed to support the MPS
planned order release
demand forecasting
independet demand
rought-cut capacity planning
6. A strategy that includes some elements of level production and some elements of chase production strategies
steps to determine order quantity when quantity discounts are available
carrying (holding cost)
mixed or hybrid strategy
Managerial approaches to reducing inventory costs
7. A planning system used to ensure the right quantities of materials are available when needed
rolling planning horizons
materials requirements planning (MRP)
difference between order & setup costs
setup cost
8. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
Wastes produced throughout the five product life cycle stages
simulation models
fixed order quantity (FOQ)
inventory status file
9. Average size of forecast errors - irrespective of their directions.
ways to improve demand planning
assumptions underlying the EOQ formulation
mean absolute deviation / mean absolute error
total system inventory
10. Simple forecasting approach that assumes that recent history is a good predictor of the near future
basic questions to answer when planning inventories
grassroots forecasting (judgement-based)
naive model (time-series - statistical)
life cycle waste assessment matrix (LCWAM)
11. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales
stockout (shortage) cost
Soft benefits of S&OP
Wastes produced throughout the five product life cycle stages
Managerial approaches to reducing inventory costs
12. 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
demand management
demand management tactics
Managerial approaches to reducing inventory costs
Hard benefits of S&OP
13. The total amount of an end item that is required
rules of forecasting
simulation models
gross requirements
product cost
14. Technique that seeks inputs from people who are in close contact with customers and products
service level policy
cumulative lead time
grassroots forecasting (judgement-based)
exponential smoothing (time-series - statistical)
15. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
Three components of resource requirements planning
measures of inventory performance
advance planning and scheduling (APS) systems
demand planning
16. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
time bucket
nervousness
the roles of inventory
service level policy
17. 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
order interval
collaborative activities in CPFR
dependent demand inventory systems
planned order release
18. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
causal models vs. simulation models
demand during lead time
historical analogy (judgement-based)
inventory status file
19. 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
periodic review model
service level
business model
impact of raw material and compontent part stockouts
20. Maintenance - repair and operating supplies
inventory status file
trend
smoothing coefficient
MRO inventory
21. A combination of common sense inputs from frontline personnel and a computer simulation process
trend
Wastes produced throughout the five product life cycle stages
demand planning
focused forecasting
22. 1) Identify the price breaks on offer 2) Calculate the EOQ at each price break - starting with the lowest 3) Evaluate the feasibility of each EOQ value 4) Calculate the TAC for each feasible EOQ and for the minimum quantity required to attain each p
sales and operations planning (S&OP)
steps to determine order quantity when quantity discounts are available
Wastes produced throughout the five product life cycle stages
total acquisition cost (TAC)
23. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
inventory status file
square root rule
continuous review model
aggregate production plan
24. items in transit from ont location to another
the financial impact of inventory
transit inventory
master production schedule (MPS)
Cost of being overstocked by one unit
25. Replan each period (month or quarter) - for a given number of periods into the future
cost of a unit stockout
moving average (time-series - statistical)
rolling planning horizons
Moore's law
26. items that are ready for sale to customers
finished goods inventory
planned order release
transit inventory
inefficiencies caused by unpredictably fluctuating customer demand
27. 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
order interval
Global Trade Item Number (GTIN)
inefficiencies caused by unpredictably fluctuating customer demand
options to accomplish the objective of a chase plan
28. The sum of the inventory held across all of the locations in a company
ABC analysis
types of costs that must be identified and quantified in aggregate planning
demand forecasting
total system inventory
29. 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.
Impact of lot size restrictions on quantity discounts
regression analysis
ways to improve demand planning
executive judgment (judgement-based)
30. An illustration of the pattern of ordering and inventory levels
periodic review model
setup cost
Advantages of high inventory turnover
saw-tooth diagram
31. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
autocorrelation
inventory status file
postponable product
Global Trade Item Number (GTIN)
32. A one-time change in demand - susually due to some external influence on demand
Managerial approaches to reducing inventory costs
forecast bias / mean forecast error
time bucket
shift or step change
33. Unit selling price - unit cost
available to promise
cost of a unit stockout
forecast error
rules of forecasting
34. The longest lead-time path in the BOM
cumulative lead time
single period inventory model
buffer (safety) stock
moving average (time-series - statistical)
35. 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
setup cost
the financial impact of inventory
Soft benefits of S&OP
demand management
36. inventory classification - info systems - accurate records
fixed order quantity (FOQ)
Techniques used to manage inventory
Global Trade Item Number (GTIN)
Moore's law
37. 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
types of costs that must be identified and quantified in aggregate planning
total system inventory
service level
Soft benefits of S&OP
38. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
vendor-managed inventory (VIM)
production order quantity
two-bin system
chase strategy (aggregate production strategy)
39. inventory that is in the production process
days of supply
independent demand inventory systems
work in process inventory
life cycle waste assessment matrix (LCWAM)
40. Unit cost + disposal cost - salvage value
regression analysis
Cost of being overstocked by one unit
requirements explosion
inventory turnover
41. 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)
part number
saw-tooth diagram
demand during lead time
items included in the inventory record
42. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
transit inventory
Three components of resource requirements planning
fixed order quantity (FOQ)
time series and analysis methods
43. Production rate is changed in each period to match the amount of expected demand
net requriements
mixed or hybrid strategy
inventory
chase strategy (aggregate production strategy)
44. 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
smoothing coefficient
rolling planning horizons
bullwhip effect
inventory turnover
45. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
buffer (safety) stock
demand forecasting
moving average (time-series - statistical)
Disadvantages when inventory turnover is too high
46. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
moving average (time-series - statistical)
economic order quantity (EOQ)
options to accomplish the objective of a chase plan
47. Quantities of each finished product to be completed for each period
capacity requirements planning (CRP)
seasonality and cycles
master production schedule (MPS)
Three components of resource requirements planning
48. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
days of supply
product cost
types of costs that must be identified and quantified in aggregate planning
setup cost
49. The amount that is planned to arrive at the beginning of a period
mean absolute deviation / mean absolute error
items included in the inventory record
forecast error
planned order receipt
50. 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)
demand planning
aggregate production plan
basic questions to answer when planning inventories
Disadvantages when inventory turnover is too high