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. The ranking of all items of inventory acording to importance






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






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






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






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






6. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies






7. A period of time when an unknown amount of inventory is on hand






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






9. 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






10. inventory that is in the production process






11. 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






12. 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






13. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan






14. inconsistencies in the plan causes by changes to the MPS






15. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain






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






17. Replan each period (month or quarter) - for a given number of periods into the future






18. inventory of an item is stored in two different locations






19. Unit selling price - unit cost






20. Software that consolidates all of the business planning systems and data throughout an organization






21. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand






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






23. 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






24. 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






25. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost






26. 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






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






28. 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






29. Technique that seeks inputs from people who are in close contact with customers and products






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






31. 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)






32. An estimation of the availability of the critical resources needed to support the MPS






33. Amount paid to suppliers for products that are purchased






34. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain






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






36. Sum of all relevant inventory costs incurred each year






37. 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






38. A fixed time period that passes between inventory reviews






39. A planning system used to ensure the right quantities of materials are available when needed






40. 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






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






42. Decision process in which managers predict demand and make operational plans accordingly






43. 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






44. 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.






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






46. An order for the exact amount needed






47. 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






48. Supply of items held by a firm to meet demand






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






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