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. 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






2. Maintenance - repair and operating supplies






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






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






5. File that contains detailed inventory and procurement records






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






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






8. The minimum amount needed in the period






9. inventory that is in the production process






10. 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






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






12. 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






13. Comparison of production needs to actual capacity






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






16. 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






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






18. Correlation of current demand values with past demand values






19. Production rate is changed in each period to match the amount of expected demand






20. items in transit from ont location to another






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






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






23. 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)






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






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






26. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing






27. Unit cost + disposal cost - salvage value






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






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






30. A fixed time period that passes between inventory reviews






31. 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






32. inventory classification - info systems - accurate records






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






34. Regular demand patterns of repeating highs and lows






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






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






37. The individual time period for planning






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






39. 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.






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






41. 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






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


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






44. The firm produces at a constant rate over the year






45. 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






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






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






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






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






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