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






2. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling






3. 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






4. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known






5. The ranking of all items of inventory acording to importance






6. Correlation of current demand values with past demand values






7. Comparison of production needs to actual capacity






8. An order for an amount that covers a fixed period of time






9. Cost incurred when inventory is not available to meet demand - cost of lost current and future sales






10. 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






11. The entire time period covered by the MPS






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






13. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods






14. The longest lead-time path in the BOM






15. The individual time period for planning






16. Specification of the amount of risk of incurring a stockout that a firm is willing to incur






17. 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






18. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans






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






20. Model used to determine the order size for a one-time purchase






21. Cycle stocks - safety stocks - managing locations - implementing inventory models






22. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)






23. An event that occurs when no inventory is available






24. The tendency of a forecasting technique to continually overpredict or underpredict demand.






25. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle






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






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






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






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






30. The amount of an item that is planned to be ordered in a period






31. 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






32. A one-time change in demand - susually due to some external influence on demand






33. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time






34. A mathematical approach for fitting an equation to a set of data






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






36. 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)






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






38. 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






39. Forecasting technique that bases forecastis on the purchasing patterns and attitutdes of current or potential customers






40. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions






41. 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






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






43. 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






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






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






46. Unit cost + disposal cost - salvage value






47. 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






48. The total amount of an end item that is required






49. Consistent horizontal stream of demands






50. Sum of all relevant inventory costs incurred each year