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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. Cycle stocks - safety stocks - managing locations - implementing inventory models
Wastes produced throughout the five product life cycle stages
Techniques used to manage inventory
Managerial approaches to reducing inventory costs
naive model (time-series - statistical)
2. Quantities of each finished product to be completed for each period
collaborative planning - forecasting and replenishment (CPFR)
difference between order & setup costs
postponable product
master production schedule (MPS)
3. Demand that depends upon decisions made by internal operations managers
dependent demand
cumulative lead time
periodic review model
options to accomplish the objective of a chase plan
4. Expenses incurred due to the fact that inventory is held
total acquisition cost (TAC)
Hard benefits of S&OP
Impact of lot size restrictions on quantity discounts
carrying (holding cost)
5. A period of time when an unknown amount of inventory is on hand
uncertainty period
Wastes produced throughout the five product life cycle stages
materials requirements planning (MRP)
collaborative planning - forecasting and replenishment (CPFR)
6. Ratio between average inventory and the level of sales: = COGS/Average inventory@cost = Net sales/Average inventory@sales price = Unit sales/Average inventory in units
inventory turnover
planned order receipt
stable pattern
options to accomplish the objective of a chase plan
7. A parameter indicating the weight given to the most recent demand
Three components of resource requirements planning
chase strategy (aggregate production strategy)
regression analysis
smoothing coefficient
8. A mathematical approach for fitting an equation to a set of data
options to accomplish the objective of a chase plan
Moore's law
periodic order quantity (POQ)
regression analysis
9. 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
Advantages of high inventory turnover
service level
master production schedule (MPS)
bullwhip effect
10. The total amount of an end item that is required
the roles of inventory
economic order quantity (EOQ)
cumulative lead time
gross requirements
11. The entire time period covered by the MPS
demand management
production order quantity
enterprise resource planning (ERP) system
planning horizon
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
collaborative activities in CPFR
infinite loading
lot-for-lot (L4L)
types of costs that must be identified and quantified in aggregate planning
13. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
economic order quantity (EOQ)
dependent demand
cycle stock
cumulative lead time
14. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
Global Trade Item Number (GTIN)
historical analogy (judgement-based)
production order quantity
Pareto's law
15. Systems that integrate materials and capacity planning into one system
target service level (TSL)
advance planning and scheduling (APS) systems
collaborative planning - forecasting and replenishment (CPFR)
collaborative planning - forecasting and replenishment (CPFR)
16. Simple forecasting approach that assumes that recent history is a good predictor of the near future
naive model (time-series - statistical)
transit inventory
difference between order & setup costs
steps to determine order quantity when quantity discounts are available
17. Extra inventory held to guard against uncertainty in demand or supply
moving average (time-series - statistical)
Delphi method (judgement-based)
buffer (safety) stock
regression analysis
18. Forecasting techniques that use input from high-level experienced managers
time bucket
mean absolute deviation / mean absolute error
executive judgment (judgement-based)
Delphi method (judgement-based)
19. Sum of all relevant inventory costs incurred each year
total acquisition cost (TAC)
single period inventory model
impact of raw material and compontent part stockouts
load profile
20. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
marketing research (judgement-based)
Soft benefits of S&OP
simulation models
measures of inventory performance
21. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
master production schedule (MPS)
important trends influencing operations management and the emergence of business models
independet demand
target service level (TSL)
22. 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
target service level (TSL)
time series and analysis methods
Advantages of high inventory turnover
single period inventory model
23. inventory that is in the production process
stockout (shortage) cost
infinite loading
life cycle waste assessment matrix (LCWAM)
work in process inventory
24. Regular demand patterns of repeating highs and lows
collaborative planning - forecasting and replenishment (CPFR)
forecast error
seasonality and cycles
stable pattern
25. 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)
impact of raw material and compontent part stockouts
advance planning and scheduling (APS) systems
dependent demand inventory systems
demand planning
26. Vendor is responsible for managing the inventory located at a customer's facility
weighted moving average (time-series - statistical)
work in process inventory
vendor-managed inventory (VIM)
Soft benefits of S&OP
27. Unit selling price - unit cost
planned order release
demand forecasting
infinite loading
cost of a unit stockout
28. Management systems used when the demand for an item is derived from the demand for some other item
days of supply
stockout
weighted moving average (time-series - statistical)
dependent demand inventory systems
29. 1) Improved forecast accuracy 2) Higher customer service with lower finished goods inventory levels due to better forecasts and coordination fo supply with demand 3) More stable supply rates -> Higher productivity for purchasing - suppliers and oper
Hard benefits of S&OP
collaborative planning - forecasting and replenishment (CPFR)
distribution requirements planning (DRP)
level production strategy (aggregate production strategy)
30. 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
options to accomplish the objective of a chase plan
gross requirements
exponential smoothing (time-series - statistical)
mean absolute deviation / mean absolute error
31. Unique ID for a part used by a specific company
reorder point (ROP)
load profile
part number
distribution requirements planning (DRP)
32. inventory classification - info systems - accurate records
seasonality and cycles
shift or step change
exponential smoothing (time-series - statistical)
Techniques used to manage inventory
33. The sum of the inventory held across all of the locations in a company
raw materials and components parts
MRO inventory
total system inventory
days of supply
34. 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
collaborative planning - forecasting and replenishment (CPFR)
demand forecasting
naive model (time-series - statistical)
forecast accuracy
35. The minimum amount needed in the period
net requriements
buffer (safety) stock
focused forecasting
total acquisition cost (TAC)
36. inventory is constantly monitored to decide when a replenishement order needs to be placed
focused forecasting
forecast bias / mean forecast error
quantitative ABC analysis procedure
continuous review model
37. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
single period inventory model
days of supply
nervousness
demand forecasting
38. Model used to determine the order size for a one-time purchase
single period inventory model
mean absolute deviation / mean absolute error
impact of raw material and compontent part stockouts
cumulative lead time
39. 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
demand management tactics
cumulative lead time
demand planning
product cost
40. Difference between a forecast and the actual demand
materials requirements planning (MRP)
target service level (TSL)
fixed order quantity (FOQ)
forecast error
41. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
seasonality and cycles
stable pattern
Delphi method (judgement-based)
periodic review model
42. 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
steps to determine order quantity when quantity discounts are available
mean absolute deviation / mean absolute error
historical analogy (judgement-based)
economic order quantity (EOQ)
43. 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
impact of raw material and compontent part stockouts
stockout
load profile
assumptions underlying the EOQ formulation
44. Consistent horizontal stream of demands
gross requirements
stable pattern
judgement-based forecasting
finished goods inventory
45. Forecasting model model that assigns a different weight to each period's demand according to its importance
life cycle waste assessment matrix (LCWAM)
focused forecasting
weighted moving average (time-series - statistical)
seasonality and cycles
46. 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)
Impact of lot size restrictions on quantity discounts
Advantages of high inventory turnover
items included in the inventory record
Outputs of materials requirements planning (MRP)
47. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle
life cycle analysis
demand during lead time
total system inventory
forecast bias / mean forecast error
48. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
dependent demand inventory systems
Wastes produced throughout the five product life cycle stages
steps to determine order quantity when quantity discounts are available
production order quantity
49. 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
the financial impact of inventory
options to accomplish the objective of a chase plan
Disadvantages when inventory turnover is too high
business model
50. Technique that seeks inputs from people who are in close contact with customers and products
marketing research (judgement-based)
stable pattern
grassroots forecasting (judgement-based)
dependent demand