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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. An order for the same amount each time
fixed order quantity (FOQ)
reorder point (ROP)
stockout (shortage) cost
simulation models
2. A mathematical approach for fitting an equation to a set of data
inventory turnover
net requriements
regression analysis
lot-for-lot (L4L)
3. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
Three components of resource requirements planning
advance planning and scheduling (APS) systems
mean absolute deviation / mean absolute error
Moore's law
4. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
demand forecasting
demand during lead time
bill of materials (BOM)
level production strategy (aggregate production strategy)
5. The longest lead-time path in the BOM
cumulative lead time
advance planning and scheduling (APS) systems
Global Trade Item Number (GTIN)
finished goods inventory
6. Unit selling price - unit cost
cost of a unit stockout
collaborative planning - forecasting and replenishment (CPFR)
available to promise
buffer (safety) stock
7. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
aggregate production plan
square root rule
rought-cut capacity planning
regression analysis
8. items that are ready for sale to customers
finished goods inventory
rolling planning horizons
executive judgment (judgement-based)
target service level (TSL)
9. The sum of the inventory held across all of the locations in a company
independent demand inventory systems
total system inventory
time bucket
cycle stock
10. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
bullwhip effect
days of supply
independent demand inventory systems
quantitative ABC analysis procedure
11. Process that adjusts prices as demand for a service occurs (or does not occur)
yield management
regression analysis
stable pattern
available to promise
12. An order for an amount that covers a fixed period of time
demand planning
the expense components of carrying cost
periodic order quantity (POQ)
inventory
13. 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)
bill of materials (BOM)
Global Trade Item Number (GTIN)
items included in the inventory record
planned order receipt
14. inventory that is in the production process
Managerial approaches to reducing inventory costs
work in process inventory
forecast bias / mean forecast error
regression analysis
15. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle
two-bin system
cycle stock
life cycle analysis
judgement-based forecasting
16. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
economic order quantity (EOQ)
the roles of inventory
exponential smoothing (time-series - statistical)
life cycle analysis
17. Computing power will double every 18 months while computing cost will decrease by half
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18. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
single period inventory model
dependent demand inventory systems
inventory status file
economic order quantity (EOQ)
19. Management system built around checking and ordering inventory at some regular interval
cost of a unit stockout
Three components of resource requirements planning
rought-cut capacity planning
periodic review model
20. Tool created by AT&T for assessing life cycle costs
life cycle waste assessment matrix (LCWAM)
forecast accuracy
advance planning and scheduling (APS) systems
setup cost
21. inventory is constantly monitored to decide when a replenishement order needs to be placed
economic order quantity (EOQ)
focused forecasting
continuous review model
items included in the inventory record
22. inventory management systems used when the demand for an item is beyond the control of the organization
mixed or hybrid strategy
Three components of resource requirements planning
planned order receipt
independent demand inventory systems
23. The ranking of all items of inventory acording to importance
stockout (shortage) cost
collaborative activities in CPFR
ABC analysis
items included in the inventory record
24. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
items included in the inventory record
total system inventory
time series and analysis methods
distribution requirements planning (DRP)
25. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
forecast bias / mean forecast error
Techniques used to manage inventory
important trends influencing operations management and the emergence of business models
load profile
26. inventory classification - info systems - accurate records
rolling planning horizons
buffer (safety) stock
total acquisition cost (TAC)
Techniques used to manage inventory
27. 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
order interval
Techniques used to manage inventory
Advantages of high inventory turnover
shift or step change
28. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
Managerial approaches to reducing inventory costs
the roles of inventory
chase strategy (aggregate production strategy)
demand management tactics
29. How much should be ordered and when?
judgement-based forecasting
part number
basic questions to answer when planning inventories
Impact of lot size restrictions on quantity discounts
30. Forecasting model model that assigns a different weight to each period's demand according to its importance
exponential smoothing (time-series - statistical)
weighted moving average (time-series - statistical)
rolling planning horizons
trend
31. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
Impact of lot size restrictions on quantity discounts
trend
production order quantity
gross requirements
32. 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
work in process inventory
basic questions to answer when planning inventories
quantitative ABC analysis procedure
Soft benefits of S&OP
33. 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.
marketing research (judgement-based)
difference between order & setup costs
inefficiencies caused by unpredictably fluctuating customer demand
total system inventory
34. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
Cost of being overstocked by one unit
grassroots forecasting (judgement-based)
service level policy
work in process inventory
35. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
distribution requirements planning (DRP)
cumulative lead time
causal models vs. simulation models
stockout
36. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
trend
difference between order & setup costs
square root rule
sales and operations planning (S&OP)
37. An estimate of the capacity needed at work centers
capacity requirements planning (CRP)
demand management tactics
time bucket
time series and analysis methods
38. 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
periodic review model
days of supply
rules of forecasting
available to promise
39. A planning system used to ensure the right quantities of materials are available when needed
simulation models
planned order release
target service level (TSL)
materials requirements planning (MRP)
40. Supply of items held by a firm to meet demand
transit inventory
assumptions underlying the EOQ formulation
inventory
judgement-based forecasting
41. 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
historical analogy (judgement-based)
periodic review model
options to accomplish the objective of a chase plan
uncertainty period
42. A period of time when an unknown amount of inventory is on hand
stable pattern
Global Trade Item Number (GTIN)
uncertainty period
simulation models
43. The amount of an item that is planned to be ordered in a period
planned order release
grassroots forecasting (judgement-based)
Techniques used to manage inventory
materials requirements planning (MRP)
44. Vendor is responsible for managing the inventory located at a customer's facility
rules of forecasting
carrying (holding cost)
stable pattern
vendor-managed inventory (VIM)
45. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
ways to improve demand planning
Wastes produced throughout the five product life cycle stages
Advantages of high inventory turnover
Steps of designing a forecasting process
46. The total amount of an end item that is required
weighted moving average (time-series - statistical)
gross requirements
Cost of being overstocked by one unit
rought-cut capacity planning
47. Comparison of production needs to actual capacity
load profile
causal models vs. simulation models
Soft benefits of S&OP
simulation models
48. Consistent horizontal stream of demands
options to accomplish the objective of a chase plan
dependent demand
sales and operations planning (S&OP)
stable pattern
49. Production rate is changed in each period to match the amount of expected demand
chase strategy (aggregate production strategy)
single period inventory model
sales and operations planning (S&OP)
two-bin system
50. Primary reports (schedules of the planned order releases that are used to trigger purchases and production of items on time) - and secondary reports (cost - inventory and schedule attainment information that helps judge how well the operation is pe
capacity requirements planning (CRP)
Outputs of materials requirements planning (MRP)
cycle stock
planned order release