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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. 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
mixed or hybrid strategy
collaborative planning - forecasting and replenishment (CPFR)
rules of forecasting
life cycle waste assessment matrix (LCWAM)
2. 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
steps to determine order quantity when quantity discounts are available
Hard benefits of S&OP
historical analogy (judgement-based)
Techniques used to manage inventory
3. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
service level
lot-for-lot (L4L)
the financial impact of inventory
historical analogy (judgement-based)
4. Unit cost + disposal cost - salvage value
reorder point (ROP)
Cost of being overstocked by one unit
total system inventory
the financial impact of inventory
5. A fixed time period that passes between inventory reviews
demand management
setup cost
order interval
dependent demand
6. A strategy that includes some elements of level production and some elements of chase production strategies
options to accomplish the objective of a chase plan
mixed or hybrid strategy
Hard benefits of S&OP
types of costs that must be identified and quantified in aggregate planning
7. Management system built around checking and ordering inventory at some regular interval
part number
transit inventory
independet demand
periodic review model
8. The sum of the inventory held across all of the locations in a company
forecast bias / mean forecast error
collaborative planning - forecasting and replenishment (CPFR)
total system inventory
cost of a unit stockout
9. Expenses incurred due to the fact that inventory is held
options to accomplish the objective of a chase plan
inventory turnover
Pareto's law
carrying (holding cost)
10. A mathematical approach for fitting an equation to a set of data
sales and operations planning (S&OP)
assumptions underlying the EOQ formulation
capacity requirements planning (CRP)
regression analysis
11. 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.
cycle counting
rules of forecasting
judgement-based forecasting
reorder point (ROP)
12. 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
service level policy
postponable product
Disadvantages when inventory turnover is too high
Global Trade Item Number (GTIN)
13. items that are ready for sale to customers
finished goods inventory
Wastes produced throughout the five product life cycle stages
bill of materials (BOM)
raw materials and components parts
14. A one-time change in demand - susually due to some external influence on demand
bill of materials (BOM)
shift or step change
demand planning
requirements explosion
15. The tendency of a forecasting technique to continually overpredict or underpredict demand.
the roles of inventory
forecast bias / mean forecast error
demand management
distribution requirements planning (DRP)
16. Minimum level of inventory that triggers the need to order more
seasonality and cycles
items included in the inventory record
naive model (time-series - statistical)
reorder point (ROP)
17. 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
assumptions underlying the EOQ formulation
autocorrelation
seasonality and cycles
Techniques used to manage inventory
18. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
postponable product
raw materials and components parts
Moore's law
causal models vs. simulation models
19. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
order cost
Managerial approaches to reducing inventory costs
assumptions underlying the EOQ formulation
items included in the inventory record
20. Forecasting model model that assigns a different weight to each period's demand according to its importance
raw materials and components parts
sales and operations planning (S&OP)
weighted moving average (time-series - statistical)
enterprise resource planning (ERP) system
21. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
Delphi method (judgement-based)
causal models vs. simulation models
order interval
marketing research (judgement-based)
22. An event that occurs when no inventory is available
stockout
demand planning
Wastes produced throughout the five product life cycle stages
inventory turnover
23. 1) Extra resources expand and contract capacity to meet varying demand 2) Backlogging of certain orders to smooth out demand fluctuations 3) Customer dissatisfaction with inability to meet all demands 4) Buffering the system with safety stocks - saf
requirements explosion
inefficiencies caused by unpredictably fluctuating customer demand
Hard benefits of S&OP
collaborative activities in CPFR
24. 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)
target service level (TSL)
service level
mixed or hybrid strategy
stockout (shortage) cost
25. 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
Moore's law
rules of forecasting
regression analysis
distribution requirements planning (DRP)
26. Determination of replenishement and postioining of finished goods in the distribution network
order interval
distribution requirements planning (DRP)
Three components of resource requirements planning
collaborative planning - forecasting and replenishment (CPFR)
27. An illustration of the pattern of ordering and inventory levels
life cycle analysis
the financial impact of inventory
Techniques used to manage inventory
saw-tooth diagram
28. inventory of an item is stored in two different locations
two-bin system
rought-cut capacity planning
Managerial approaches to reducing inventory costs
gross requirements
29. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information
capacity requirements planning (CRP)
ways to improve demand planning
work in process inventory
trend
30. 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
stable pattern
forecast bias / mean forecast error
types of costs that must be identified and quantified in aggregate planning
options to accomplish the objective of a chase plan
31. Difference between a forecast and the actual demand
periodic order quantity (POQ)
ABC analysis
Outputs of materials requirements planning (MRP)
forecast error
32. An order for the same amount each time
postponable product
fixed order quantity (FOQ)
days of supply
impact of raw material and compontent part stockouts
33. Amount paid to suppliers for products that are purchased
Techniques used to manage inventory
product cost
the expense components of carrying cost
bullwhip effect
34. inventory classification - info systems - accurate records
grassroots forecasting (judgement-based)
demand planning
Techniques used to manage inventory
bullwhip effect
35. Model used to determine the order size for a one-time purchase
single period inventory model
work in process inventory
stockout
mean absolute deviation / mean absolute error
36. inventory is constantly monitored to decide when a replenishement order needs to be placed
time bucket
fixed order quantity (FOQ)
continuous review model
Managerial approaches to reducing inventory costs
37. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
regression analysis
finished goods inventory
bullwhip effect
service level policy
38. An order for an amount that covers a fixed period of time
bullwhip effect
Wastes produced throughout the five product life cycle stages
simulation models
periodic order quantity (POQ)
39. 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
smoothing coefficient
materials requirements planning (MRP)
seasonality and cycles
Soft benefits of S&OP
40. Vendor is responsible for managing the inventory located at a customer's facility
vendor-managed inventory (VIM)
business model
buffer (safety) stock
target service level (TSL)
41. Average size of forecast errors - irrespective of their directions.
production order quantity
mean absolute deviation / mean absolute error
product cost
postponable product
42. Process that adjusts prices as demand for a service occurs (or does not occur)
raw materials and components parts
yield management
ways to improve demand planning
independent demand inventory systems
43. 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
types of costs that must be identified and quantified in aggregate planning
independent demand inventory systems
demand forecasting
44. 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
MRO inventory
demand management tactics
executive judgment (judgement-based)
Disadvantages when inventory turnover is too high
45. A planning system used to ensure the right quantities of materials are available when needed
materials requirements planning (MRP)
two-bin system
time bucket
gross requirements
46. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
causal models vs. simulation models
important trends influencing operations management and the emergence of business models
judgement-based forecasting
Disadvantages when inventory turnover is too high
47. Administrative expenses and the expenses of rearranging a work center to produce an item
planned order release
Wastes produced throughout the five product life cycle stages
order cost
setup cost
48. How much should be ordered and when?
raw materials and components parts
MRO inventory
inefficiencies caused by unpredictably fluctuating customer demand
basic questions to answer when planning inventories
49. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
cycle stock
moving average (time-series - statistical)
saw-tooth diagram
collaborative activities in CPFR
50. Unique ID for a part used by a specific company
available to promise
moving average (time-series - statistical)
postponable product
part number