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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. Management system built around checking and ordering inventory at some regular interval
periodic review model
gross requirements
buffer (safety) stock
cost of a unit stockout
2. An estimate of the capacity needed at work centers
the expense components of carrying cost
capacity requirements planning (CRP)
weighted moving average (time-series - statistical)
independent demand inventory systems
3. Software that consolidates all of the business planning systems and data throughout an organization
service level policy
life cycle analysis
master production schedule (MPS)
enterprise resource planning (ERP) system
4. Measurement of how closely the forecast aligns with the observations over time
forecast accuracy
assumptions underlying the EOQ formulation
periodic review model
planned order release
5. An order for an amount that covers a fixed period of time
demand planning
inventory
stockout (shortage) cost
periodic order quantity (POQ)
6. Determination of replenishement and postioining of finished goods in the distribution network
distribution requirements planning (DRP)
periodic order quantity (POQ)
Soft benefits of S&OP
reorder point (ROP)
7. Tool created by AT&T for assessing life cycle costs
demand during lead time
collaborative activities in CPFR
life cycle waste assessment matrix (LCWAM)
regression analysis
8. The ranking of all items of inventory acording to importance
ABC analysis
chase strategy (aggregate production strategy)
bill of materials (BOM)
assumptions underlying the EOQ formulation
9. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
production order quantity
sales and operations planning (S&OP)
economic order quantity (EOQ)
saw-tooth diagram
10. A strategy that includes some elements of level production and some elements of chase production strategies
collaborative planning - forecasting and replenishment (CPFR)
steps to determine order quantity when quantity discounts are available
capacity requirements planning (CRP)
mixed or hybrid strategy
11. 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
Advantages of high inventory turnover
exponential smoothing (time-series - statistical)
inefficiencies caused by unpredictably fluctuating customer demand
load profile
12. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
Impact of lot size restrictions on quantity discounts
shift or step change
basic questions to answer when planning inventories
simulation models
13. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
days of supply
marketing research (judgement-based)
finished goods inventory
cost of a unit stockout
14. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
marketing research (judgement-based)
rules of forecasting
independet demand
15. Unit selling price - unit cost
items included in the inventory record
Wastes produced throughout the five product life cycle stages
impact of raw material and compontent part stockouts
cost of a unit stockout
16. inventory classification - info systems - accurate records
demand forecasting
total system inventory
Techniques used to manage inventory
shift or step change
17. The longest lead-time path in the BOM
ABC analysis
forecast accuracy
moving average (time-series - statistical)
cumulative lead time
18. 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
service level
autocorrelation
quantitative ABC analysis procedure
demand during lead time
19. The part of panned production that is not committed to a customer
total acquisition cost (TAC)
economic order quantity (EOQ)
vendor-managed inventory (VIM)
available to promise
20. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
service level policy
vendor-managed inventory (VIM)
periodic order quantity (POQ)
life cycle waste assessment matrix (LCWAM)
21. An order for the same amount each time
fixed order quantity (FOQ)
planned order receipt
inventory
regression analysis
22. inventory management systems used when the demand for an item is beyond the control of the organization
raw materials and components parts
the expense components of carrying cost
stockout
independent demand inventory systems
23. Amount paid to suppliers for products that are purchased
weighted moving average (time-series - statistical)
shift or step change
inventory
product cost
24. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
postponable product
Global Trade Item Number (GTIN)
net requriements
types of costs that must be identified and quantified in aggregate planning
25. 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
level production strategy (aggregate production strategy)
inventory turnover
periodic review model
options to accomplish the objective of a chase plan
26. Technique that seeks inputs from people who are in close contact with customers and products
Techniques used to manage inventory
planned order receipt
Cost of being overstocked by one unit
grassroots forecasting (judgement-based)
27. Forecasting techniques that use input from high-level experienced managers
historical analogy (judgement-based)
executive judgment (judgement-based)
requirements explosion
life cycle waste assessment matrix (LCWAM)
28. A parameter indicating the weight given to the most recent demand
independet demand
smoothing coefficient
life cycle analysis
saw-tooth diagram
29. 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
enterprise resource planning (ERP) system
master production schedule (MPS)
buffer (safety) stock
Disadvantages when inventory turnover is too high
30. 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
life cycle waste assessment matrix (LCWAM)
Hard benefits of S&OP
mean absolute deviation / mean absolute error
trend
31. Expenses incurred due to the fact that inventory is held
carrying (holding cost)
yield management
economic order quantity (EOQ)
collaborative planning - forecasting and replenishment (CPFR)
32. Proactive approach in which managers attempt to influence either the pattern or consistency of demand
demand management
total system inventory
sales and operations planning (S&OP)
rought-cut capacity planning
33. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
postponable product
stockout
total system inventory
important trends influencing operations management and the emergence of business models
34. 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)
setup cost
cost of a unit stockout
demand planning
service level policy
35. Correlation of current demand values with past demand values
total acquisition cost (TAC)
the roles of inventory
important trends influencing operations management and the emergence of business models
autocorrelation
36. 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
exponential smoothing (time-series - statistical)
capacity requirements planning (CRP)
Three components of resource requirements planning
Outputs of materials requirements planning (MRP)
37. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
measures of inventory performance
Cost of being overstocked by one unit
time bucket
level production strategy (aggregate production strategy)
38. Sum of all relevant inventory costs incurred each year
total acquisition cost (TAC)
available to promise
capacity requirements planning (CRP)
time bucket
39. 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
available to promise
life cycle analysis
collaborative activities in CPFR
setup cost
40. An illustration of the pattern of ordering and inventory levels
saw-tooth diagram
mixed or hybrid strategy
raw materials and components parts
Managerial approaches to reducing inventory costs
41. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
independent demand inventory systems
Steps of designing a forecasting process
enterprise resource planning (ERP) system
Three components of resource requirements planning
42. An estimation of the availability of the critical resources needed to support the MPS
capacity requirements planning (CRP)
net requriements
types of costs that must be identified and quantified in aggregate planning
rought-cut capacity planning
43. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
postponable product
distribution requirements planning (DRP)
Global Trade Item Number (GTIN)
available to promise
44. Forecasting model model that assigns a different weight to each period's demand according to its importance
inventory status file
service level policy
weighted moving average (time-series - statistical)
Delphi method (judgement-based)
45. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
Global Trade Item Number (GTIN)
periodic review model
focused forecasting
the roles of inventory
46. Administrative expenses and the expenses of rearranging a work center to produce an item
load profile
order cost
setup cost
Delphi method (judgement-based)
47. inconsistencies in the plan causes by changes to the MPS
distribution requirements planning (DRP)
options to accomplish the objective of a chase plan
nervousness
bill of materials (BOM)
48. The minimum amount needed in the period
yield management
net requriements
reorder point (ROP)
assumptions underlying the EOQ formulation
49. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
moving average (time-series - statistical)
Delphi method (judgement-based)
executive judgment (judgement-based)
rought-cut capacity planning
50. items that are ready for sale to customers
finished goods inventory
autocorrelation
impact of raw material and compontent part stockouts
lot-for-lot (L4L)