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) 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






2. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost






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






4. 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






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






6. An estimate of the capacity needed at work centers






7. The total amount of an end item that is required






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






9. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain






10. The tendency of a forecasting technique to continually overpredict or underpredict demand.






11. inventory classification - info systems - accurate records






12. A period of time when an unknown amount of inventory is on hand






13. Average size of forecast errors - irrespective of their directions.






14. The entire time period covered by the MPS






15. Comparison of production needs to actual capacity






16. 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






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






18. Correlation of current demand values with past demand values






19. 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






20. A planning system used to ensure the right quantities of materials are available when needed






21. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures






22. The individual time period for planning






23. A fixed time period that passes between inventory reviews






24. Items bought from suppliers to use in the production of a product






25. Technique that seeks inputs from people who are in close contact with customers and products






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






27. Approach used to evaluate the costs generated by wastes produced throughout a product's life cycle






28. 1) Inventory holding cost 2) Regular production cost 3) Overtime cost 4) Hiring cost 5) Firing/layoff cost 6) Backorder/lost sales cost 7) Subcontracting cost






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






30. Supply of items held by a firm to meet demand






31. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods






32. Sum of all relevant inventory costs incurred each year






33. inventory that is in the production process






34. 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






35. 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)






36. 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






37. The most economic quantity to order when units become available at the rate at which they are produced (i.e. with partial order deliveries)






38. 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






39. 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






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






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






42. A parameter indicating the weight given to the most recent demand






43. Difference between a forecast and the actual demand






44. 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






45. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion






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






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






48. Amount paid to suppliers for products that are purchased






49. inventory management systems used when the demand for an item is beyond the control of the organization






50. 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.