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. Comparison of production needs to actual capacity






2. Simple forecasting approach that assumes that recent history is a good predictor of the near future






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






4. An order for the exact amount needed






5. 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






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






7. The assumption that there is an infinite amount of capacity available






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






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






10. 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






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






12. 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.






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






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






15. Demand that depends upon decisions made by internal operations managers






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






17. The firm produces at a constant rate over the year






18. A method by which supply chain partners periodicaly hsare forecasts - demand palns - and resource plans in order to reduce uncertainty and risk in meeting customer demand






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






20. The sum of the inventory held across all of the locations in a company






21. 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






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






23. Computing power will double every 18 months while computing cost will decrease by half

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






25. The part of panned production that is not committed to a customer






26. The determination of how many additional units are needed






27. 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






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






29. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held






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






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






32. Forecasting models that compute forecasts using historical data arranged in the order of occurrence






33. An estimate of the capacity needed at work centers






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






35. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)






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






37. The portion of average inventory determined as order quantity divided by two






38. Correlation of current demand values with past demand values






39. The minimum amount needed in the period






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






41. 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






42. 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






43. Software that consolidates all of the business planning systems and data throughout an organization






44. Measurement of how closely the forecast aligns with the observations over time






45. The entire time period covered by the MPS






46. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies






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






48. 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






49. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing






50. Production rate is changed in each period to match the amount of expected demand