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






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






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






4. 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)






5. items in transit from ont location to another






6. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)






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






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






9. 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






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






11. Simple forecasting approach that assumes that recent history is a good predictor of the near future






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






13. 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






14. 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






15. 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






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






17. 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






18. The minimum amount needed in the period






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






20. The longest lead-time path in the BOM






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






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






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






24. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)






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






26. Management systems used when the demand for an item is derived from the demand for some other item






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






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






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






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






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






32. 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






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






34. 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






35. Demand that is created by customers






36. 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






37. inventory classification - info systems - accurate records






38. Combined process of forecasting and managing customer demands to create a planned pattern of demand that meets the firm's operations and financial goals (includes demand forecasting and management)






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






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






41. 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.






42. Forecasting models that compute forecasts using historical data arranged in the order of occurrence






43. Systems that integrate materials and capacity planning into one system






44. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information






45. 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.






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






47. Comparison of production needs to actual capacity






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






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






50. Difference between a forecast and the actual demand