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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. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
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2. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
enterprise resource planning (ERP) system
moving average (time-series - statistical)
Advantages of high inventory turnover
executive judgment (judgement-based)
3. Supply of items held by a firm to meet demand
product cost
order cost
life cycle analysis
inventory
4. How much should be ordered and when?
rolling planning horizons
assumptions underlying the EOQ formulation
bullwhip effect
basic questions to answer when planning inventories
5. Average size of forecast errors - irrespective of their directions.
demand planning
mean absolute deviation / mean absolute error
square root rule
level production strategy (aggregate production strategy)
6. Management system built around checking and ordering inventory at some regular interval
advance planning and scheduling (APS) systems
types of costs that must be identified and quantified in aggregate planning
Advantages of high inventory turnover
periodic review model
7. inventory is constantly monitored to decide when a replenishement order needs to be placed
target service level (TSL)
forecast bias / mean forecast error
continuous review model
enterprise resource planning (ERP) system
8. A mathematical approach for fitting an equation to a set of data
total acquisition cost (TAC)
regression analysis
work in process inventory
types of costs that must be identified and quantified in aggregate planning
9. An order for the same amount each time
inefficiencies caused by unpredictably fluctuating customer demand
fixed order quantity (FOQ)
square root rule
business model
10. inventory classification - info systems - accurate records
dependent demand
Techniques used to manage inventory
Global Trade Item Number (GTIN)
gross requirements
11. The individual time period for planning
total system inventory
historical analogy (judgement-based)
stockout (shortage) cost
time bucket
12. The determination of how many additional units are needed
requirements explosion
saw-tooth diagram
dependent demand
net requriements
13. Determination of replenishement and postioining of finished goods in the distribution network
advance planning and scheduling (APS) systems
inventory turnover
chase strategy (aggregate production strategy)
distribution requirements planning (DRP)
14. Administrative expenses and the expenses of rearranging a work center to produce an item
Soft benefits of S&OP
net requriements
Global Trade Item Number (GTIN)
setup cost
15. 1) Opportunity cost - including cost of capital 2) Owning/maintaining storage space 3) Taxes 4) Insurance 5) Obsolescence and loss 6) Materials handling - tracking - management
stockout
infinite loading
the expense components of carrying cost
chase strategy (aggregate production strategy)
16. Cycle stocks - safety stocks - managing locations - implementing inventory models
dependent demand
focused forecasting
Managerial approaches to reducing inventory costs
uncertainty period
17. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
mean absolute deviation / mean absolute error
service level policy
raw materials and components parts
available to promise
18. A planning system used to ensure the right quantities of materials are available when needed
materials requirements planning (MRP)
focused forecasting
inventory status file
collaborative activities in CPFR
19. The entire time period covered by the MPS
Wastes produced throughout the five product life cycle stages
finished goods inventory
saw-tooth diagram
planning horizon
20. 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
steps to determine order quantity when quantity discounts are available
service level
shift or step change
chase strategy (aggregate production strategy)
21. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
two-bin system
independent demand inventory systems
measures of inventory performance
time series and analysis methods
22. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
trend
Managerial approaches to reducing inventory costs
work in process inventory
gross requirements
23. Process that adjusts prices as demand for a service occurs (or does not occur)
weighted moving average (time-series - statistical)
seasonality and cycles
options to accomplish the objective of a chase plan
yield management
24. Measurement of how closely the forecast aligns with the observations over time
life cycle analysis
postponable product
forecast accuracy
Three components of resource requirements planning
25. Demand that depends upon decisions made by internal operations managers
measures of inventory performance
inefficiencies caused by unpredictably fluctuating customer demand
dependent demand
cycle stock
26. 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
options to accomplish the objective of a chase plan
order interval
forecast error
ABC analysis
27. 1) Identify users and decision-making processes that the forecast will support. Consider time horizon - level of detail - accuracy vs. cost - fit with existing business processes 2) Identify likely sources of good data 3) Select forecasting techni
days of supply
Steps of designing a forecasting process
naive model (time-series - statistical)
smoothing coefficient
28. An event that occurs when no inventory is available
cycle counting
stockout
chase strategy (aggregate production strategy)
lot-for-lot (L4L)
29. Forecasting model model that assigns a different weight to each period's demand according to its importance
aggregate production plan
moving average (time-series - statistical)
fixed order quantity (FOQ)
weighted moving average (time-series - statistical)
30. Difference between a forecast and the actual demand
forecast error
dependent demand inventory systems
Delphi method (judgement-based)
steps to determine order quantity when quantity discounts are available
31. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
independet demand
aggregate production plan
the roles of inventory
inventory
32. 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.
Impact of lot size restrictions on quantity discounts
assumptions underlying the EOQ formulation
grassroots forecasting (judgement-based)
judgement-based forecasting
33. Expenses incurred due to the fact that inventory is held
carrying (holding cost)
options to accomplish the objective of a chase plan
Hard benefits of S&OP
saw-tooth diagram
34. Simple forecasting approach that assumes that recent history is a good predictor of the near future
Global Trade Item Number (GTIN)
important trends influencing operations management and the emergence of business models
raw materials and components parts
naive model (time-series - statistical)
35. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
saw-tooth diagram
measures of inventory performance
sales and operations planning (S&OP)
Delphi method (judgement-based)
36. Production rate is changed in each period to match the amount of expected demand
judgement-based forecasting
chase strategy (aggregate production strategy)
demand management
planned order receipt
37. The total amount of an end item that is required
Outputs of materials requirements planning (MRP)
gross requirements
two-bin system
simulation models
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)
chase strategy (aggregate production strategy)
planned order release
aggregate production plan
production order quantity
39. 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
days of supply
demand forecasting
square root rule
collaborative planning - forecasting and replenishment (CPFR)
40. An estimate of the capacity needed at work centers
capacity requirements planning (CRP)
single period inventory model
the expense components of carrying cost
fixed order quantity (FOQ)
41. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
ways to improve demand planning
focused forecasting
postponable product
collaborative planning - forecasting and replenishment (CPFR)
42. 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
historical analogy (judgement-based)
Steps of designing a forecasting process
available to promise
steps to determine order quantity when quantity discounts are available
43. Software that consolidates all of the business planning systems and data throughout an organization
the financial impact of inventory
Advantages of high inventory turnover
enterprise resource planning (ERP) system
Managerial approaches to reducing inventory costs
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
inventory turnover
order interval
product cost
stable pattern
45. Systems that integrate materials and capacity planning into one system
Outputs of materials requirements planning (MRP)
advance planning and scheduling (APS) systems
moving average (time-series - statistical)
Techniques used to manage inventory
46. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
executive judgment (judgement-based)
collaborative planning - forecasting and replenishment (CPFR)
transit inventory
finished goods inventory
47. Regular demand patterns of repeating highs and lows
materials requirements planning (MRP)
demand management tactics
aggregate production plan
seasonality and cycles
48. The portion of average inventory determined as order quantity divided by two
forecast bias / mean forecast error
master production schedule (MPS)
planning horizon
cycle stock
49. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
simulation models
setup cost
total system inventory
forecast bias / mean forecast error
50. The minimum amount needed in the period
important trends influencing operations management and the emergence of business models
dependent demand inventory systems
days of supply
net requriements