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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. 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)
cost of a unit stockout
Techniques used to manage inventory
items included in the inventory record
regression analysis
2. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
seasonality and cycles
assumptions underlying the EOQ formulation
Wastes produced throughout the five product life cycle stages
materials requirements planning (MRP)
3. 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
planning horizon
Disadvantages when inventory turnover is too high
Moore's law
marketing research (judgement-based)
4. The amount that is planned to arrive at the beginning of a period
exponential smoothing (time-series - statistical)
independet demand
planned order receipt
buffer (safety) stock
5. Average size of forecast errors - irrespective of their directions.
simulation models
mean absolute deviation / mean absolute error
total system inventory
the roles of inventory
6. Quantities of each finished product to be completed for each period
master production schedule (MPS)
saw-tooth diagram
stockout (shortage) cost
finished goods inventory
7. Unique ID for a part used by a specific company
assumptions underlying the EOQ formulation
naive model (time-series - statistical)
part number
Advantages of high inventory turnover
8. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
economic order quantity (EOQ)
aggregate production plan
collaborative planning - forecasting and replenishment (CPFR)
materials requirements planning (MRP)
9. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
impact of raw material and compontent part stockouts
the roles of inventory
moving average (time-series - statistical)
demand forecasting
10. 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
business model
demand management
Outputs of materials requirements planning (MRP)
postponable product
11. Decision process in which managers predict demand and make operational plans accordingly
time bucket
Outputs of materials requirements planning (MRP)
demand forecasting
cumulative lead time
12. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
marketing research (judgement-based)
order cost
square root rule
uncertainty period
13. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
causal models vs. simulation models
important trends influencing operations management and the emergence of business models
sales and operations planning (S&OP)
stable pattern
14. Model used to determine the order size for a one-time purchase
weighted moving average (time-series - statistical)
the expense components of carrying cost
single period inventory model
moving average (time-series - statistical)
15. Consistent horizontal stream of demands
setup cost
stable pattern
seasonality and cycles
the roles of inventory
16. Replan each period (month or quarter) - for a given number of periods into the future
rolling planning horizons
Soft benefits of S&OP
weighted moving average (time-series - statistical)
net requriements
17. A parameter indicating the weight given to the most recent demand
smoothing coefficient
Impact of lot size restrictions on quantity discounts
product cost
ABC analysis
18. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
dependent demand
aggregate production plan
economic order quantity (EOQ)
cycle stock
19. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
basic questions to answer when planning inventories
economic order quantity (EOQ)
trend
mixed or hybrid strategy
20. 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
rules of forecasting
nervousness
MRO inventory
Techniques used to manage inventory
21. Process that adjusts prices as demand for a service occurs (or does not occur)
advance planning and scheduling (APS) systems
rules of forecasting
yield management
ABC analysis
22. inventory classification - info systems - accurate records
Techniques used to manage inventory
inventory
buffer (safety) stock
collaborative activities in CPFR
23. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
single period inventory model
Disadvantages when inventory turnover is too high
historical analogy (judgement-based)
moving average (time-series - statistical)
24. How much should be ordered and when?
ways to improve demand planning
aggregate production plan
basic questions to answer when planning inventories
Outputs of materials requirements planning (MRP)
25. inventory is constantly monitored to decide when a replenishement order needs to be placed
requirements explosion
types of costs that must be identified and quantified in aggregate planning
demand management tactics
continuous review model
26. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
inventory
forecast error
measures of inventory performance
setup cost
27. 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)
life cycle waste assessment matrix (LCWAM)
demand planning
yield management
impact of raw material and compontent part stockouts
28. inventory that is in the production process
raw materials and components parts
work in process inventory
marketing research (judgement-based)
stable pattern
29. 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.
judgement-based forecasting
reorder point (ROP)
demand during lead time
production order quantity
30. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
days of supply
stable pattern
lot-for-lot (L4L)
the roles of inventory
31. Correlation of current demand values with past demand values
weighted moving average (time-series - statistical)
historical analogy (judgement-based)
level production strategy (aggregate production strategy)
autocorrelation
32. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
types of costs that must be identified and quantified in aggregate planning
Moore's law
bill of materials (BOM)
saw-tooth diagram
33. 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
dependent demand inventory systems
quantitative ABC analysis procedure
Steps of designing a forecasting process
service level
34. Difference between a forecast and the actual demand
demand management tactics
basic questions to answer when planning inventories
assumptions underlying the EOQ formulation
forecast error
35. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
Impact of lot size restrictions on quantity discounts
bullwhip effect
periodic review model
collaborative planning - forecasting and replenishment (CPFR)
36. 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
service level
infinite loading
the financial impact of inventory
time series and analysis methods
37. A period of time when an unknown amount of inventory is on hand
yield management
uncertainty period
fixed order quantity (FOQ)
Hard benefits of S&OP
38. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known
service level
inventory turnover
infinite loading
postponable product
39. An illustration of the pattern of ordering and inventory levels
saw-tooth diagram
executive judgment (judgement-based)
demand during lead time
Techniques used to manage inventory
40. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)
production order quantity
inefficiencies caused by unpredictably fluctuating customer demand
Managerial approaches to reducing inventory costs
focused forecasting
41. 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
forecast error
steps to determine order quantity when quantity discounts are available
service level policy
collaborative planning - forecasting and replenishment (CPFR)
42. An event that occurs when no inventory is available
stockout
part number
production order quantity
Techniques used to manage inventory
43. 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
autocorrelation
demand planning
requirements explosion
quantitative ABC analysis procedure
44. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
postponable product
sales and operations planning (S&OP)
important trends influencing operations management and the emergence of business models
weighted moving average (time-series - statistical)
45. The amount of an item that is planned to be ordered in a period
collaborative activities in CPFR
collaborative planning - forecasting and replenishment (CPFR)
mixed or hybrid strategy
planned order release
46. Systems that integrate materials and capacity planning into one system
MRO inventory
advance planning and scheduling (APS) systems
time series and analysis methods
continuous review model
47. A one-time change in demand - susually due to some external influence on demand
level production strategy (aggregate production strategy)
production order quantity
mixed or hybrid strategy
shift or step change
48. Demand that depends upon decisions made by internal operations managers
dependent demand
stockout (shortage) cost
rought-cut capacity planning
planning horizon
49. Vendor is responsible for managing the inventory located at a customer's facility
Hard benefits of S&OP
rolling planning horizons
independet demand
vendor-managed inventory (VIM)
50. Unit cost + disposal cost - salvage value
independet demand
options to accomplish the objective of a chase plan
Cost of being overstocked by one unit
setup cost