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. Difference between a forecast and the actual demand






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






3. inventory management systems used when the demand for an item is beyond the control of the organization






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






5. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company


6. 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






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






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






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






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






11. An order for the same amount each time






12. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes






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






14. items that are ready for sale to customers






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






16. 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.






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






18. 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.






19. An order for the exact amount needed






20. The amount of demand that occurs while awaiting receipt of an inventory replenishment order






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






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






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






24. Administrative expenses and the expenses of rearranging a work center to produce an item






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






26. 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)






27. Unit cost + disposal cost - salvage value






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






29. Items bought from suppliers to use in the production of a product






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






31. The amount that is planned to arrive at the beginning of a period






32. File that contains detailed inventory and procurement records






33. 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






34. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product






35. 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






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






37. 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






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






39. Sum of all relevant inventory costs incurred each year






40. Process where each item in inventory is physically counted on a routine schedule






41. 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






42. 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






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






44. 1) Market planning: intro of new products - store openings/closings - promotions - inventory policies - etc. 2) Demand and resource planning: customer demand & shipping requirements are forecasted 3) Execution: orders are placed - delivered - r






45. Forecasting techniques that use input from high-level experienced managers






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






47. Correlation of current demand values with past demand values






48. Determination of replenishement and postioining of finished goods in the distribution network






49. Quantities of each finished product to be completed for each period






50. 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