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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 period of time when an unknown amount of inventory is on hand
trend
uncertainty period
inventory turnover
order interval
2. 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)
chase strategy (aggregate production strategy)
steps to determine order quantity when quantity discounts are available
simulation models
target service level (TSL)
3. A parameter indicating the weight given to the most recent demand
requirements explosion
lot-for-lot (L4L)
postponable product
smoothing coefficient
4. 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
distribution requirements planning (DRP)
the expense components of carrying cost
Outputs of materials requirements planning (MRP)
impact of raw material and compontent part stockouts
5. An illustration of the pattern of ordering and inventory levels
Three components of resource requirements planning
marketing research (judgement-based)
focused forecasting
saw-tooth diagram
6. 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
ways to improve demand planning
buffer (safety) stock
economic order quantity (EOQ)
7. Tool created by AT&T for assessing life cycle costs
sales and operations planning (S&OP)
rought-cut capacity planning
life cycle waste assessment matrix (LCWAM)
inefficiencies caused by unpredictably fluctuating customer demand
8. The amount that is planned to arrive at the beginning of a period
setup cost
saw-tooth diagram
planned order receipt
postponable product
9. An event that occurs when no inventory is available
periodic order quantity (POQ)
demand management tactics
stockout
bill of materials (BOM)
10. Replan each period (month or quarter) - for a given number of periods into the future
rolling planning horizons
target service level (TSL)
quantitative ABC analysis procedure
total acquisition cost (TAC)
11. 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
target service level (TSL)
quantitative ABC analysis procedure
the roles of inventory
cycle counting
12. 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
items included in the inventory record
Advantages of high inventory turnover
Managerial approaches to reducing inventory costs
mean absolute deviation / mean absolute error
13. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
materials requirements planning (MRP)
production order quantity
reorder point (ROP)
the expense components of carrying cost
14. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
marketing research (judgement-based)
moving average (time-series - statistical)
fixed order quantity (FOQ)
cycle stock
15. 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)
items included in the inventory record
basic questions to answer when planning inventories
the expense components of carrying cost
load profile
16. Unit cost + disposal cost - salvage value
options to accomplish the objective of a chase plan
Impact of lot size restrictions on quantity discounts
Cost of being overstocked by one unit
raw materials and components parts
17. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
grassroots forecasting (judgement-based)
finished goods inventory
collaborative planning - forecasting and replenishment (CPFR)
simulation models
18. 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
important trends influencing operations management and the emergence of business models
Soft benefits of S&OP
demand management
inventory status file
19. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
trend
Pareto's law
autocorrelation
time series and analysis methods
20. inconsistencies in the plan causes by changes to the MPS
dependent demand
nervousness
mixed or hybrid strategy
sales and operations planning (S&OP)
21. Unique ID for a part used by a specific company
ways to improve demand planning
postponable product
part number
important trends influencing operations management and the emergence of business models
22. A combination of common sense inputs from frontline personnel and a computer simulation process
total acquisition cost (TAC)
focused forecasting
quantitative ABC analysis procedure
chase strategy (aggregate production strategy)
23. Correlation of current demand values with past demand values
options to accomplish the objective of a chase plan
Three components of resource requirements planning
autocorrelation
causal models vs. simulation models
24. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
mean absolute deviation / mean absolute error
quantitative ABC analysis procedure
Wastes produced throughout the five product life cycle stages
planned order receipt
25. Extra inventory held to guard against uncertainty in demand or supply
buffer (safety) stock
single period inventory model
forecast bias / mean forecast error
sales and operations planning (S&OP)
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
Moore's law
periodic review model
options to accomplish the objective of a chase plan
Delphi method (judgement-based)
27. Process that adjusts prices as demand for a service occurs (or does not occur)
transit inventory
order cost
yield management
planned order receipt
28. The amount of demand that occurs while awaiting receipt of an inventory replenishment order
demand during lead time
nervousness
the roles of inventory
Hard benefits of S&OP
29. Unit selling price - unit cost
autocorrelation
steps to determine order quantity when quantity discounts are available
level production strategy (aggregate production strategy)
cost of a unit stockout
30. An order for the exact amount needed
marketing research (judgement-based)
basic questions to answer when planning inventories
judgement-based forecasting
lot-for-lot (L4L)
31. 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.
weighted moving average (time-series - statistical)
difference between order & setup costs
demand during lead time
Disadvantages when inventory turnover is too high
32. 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
items included in the inventory record
periodic order quantity (POQ)
grassroots forecasting (judgement-based)
33. 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
inefficiencies caused by unpredictably fluctuating customer demand
setup cost
mean absolute deviation / mean absolute error
Pareto's law
34. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
Pareto's law
grassroots forecasting (judgement-based)
the roles of inventory
35. items that are ready for sale to customers
finished goods inventory
capacity requirements planning (CRP)
stockout (shortage) cost
types of costs that must be identified and quantified in aggregate planning
36. inventory management systems used when the demand for an item is beyond the control of the organization
square root rule
independent demand inventory systems
enterprise resource planning (ERP) system
Three components of resource requirements planning
37. 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
weighted moving average (time-series - statistical)
Hard benefits of S&OP
Disadvantages when inventory turnover is too high
life cycle waste assessment matrix (LCWAM)
38. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
planning horizon
cycle stock
distribution requirements planning (DRP)
postponable product
39. 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
cost of a unit stockout
reorder point (ROP)
service level
business model
40. Model used to determine the order size for a one-time purchase
stockout (shortage) cost
single period inventory model
assumptions underlying the EOQ formulation
autocorrelation
41. Technique that seeks inputs from people who are in close contact with customers and products
saw-tooth diagram
demand management
grassroots forecasting (judgement-based)
Advantages of high inventory turnover
42. 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
yield management
gross requirements
the financial impact of inventory
independet demand
43. 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
master production schedule (MPS)
dependent demand inventory systems
options to accomplish the objective of a chase plan
44. Supply of items held by a firm to meet demand
steps to determine order quantity when quantity discounts are available
rolling planning horizons
net requriements
inventory
45. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers
grassroots forecasting (judgement-based)
marketing research (judgement-based)
forecast bias / mean forecast error
target service level (TSL)
46. Regular demand patterns of repeating highs and lows
time series and analysis methods
infinite loading
master production schedule (MPS)
seasonality and cycles
47. Decision process in which managers predict demand and make operational plans accordingly
rolling planning horizons
planned order release
yield management
demand forecasting
48. inventory of an item is stored in two different locations
economic order quantity (EOQ)
types of costs that must be identified and quantified in aggregate planning
two-bin system
independent demand inventory systems
49. The longest lead-time path in the BOM
items included in the inventory record
cumulative lead time
inventory
options to accomplish the objective of a chase plan
50. Average size of forecast errors - irrespective of their directions.
finished goods inventory
economic order quantity (EOQ)
mean absolute deviation / mean absolute error
life cycle waste assessment matrix (LCWAM)