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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. Process where each item in inventory is physically counted on a routine schedule
part number
cycle stock
Cost of being overstocked by one unit
cycle counting
2. 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
service level
inventory turnover
planned order release
marketing research (judgement-based)
3. Demand that depends upon decisions made by internal operations managers
impact of raw material and compontent part stockouts
load profile
Techniques used to manage inventory
dependent demand
4. 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
Outputs of materials requirements planning (MRP)
Global Trade Item Number (GTIN)
exponential smoothing (time-series - statistical)
dependent demand
5. 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
assumptions underlying the EOQ formulation
Wastes produced throughout the five product life cycle stages
Global Trade Item Number (GTIN)
collaborative planning - forecasting and replenishment (CPFR)
6. The total amount of an end item that is required
demand forecasting
gross requirements
bill of materials (BOM)
options to accomplish the objective of a chase plan
7. Difference between a forecast and the actual demand
forecast error
independet demand
demand management
judgement-based forecasting
8. A combination of common sense inputs from frontline personnel and a computer simulation process
the financial impact of inventory
inventory status file
types of costs that must be identified and quantified in aggregate planning
focused forecasting
9. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
square root rule
order cost
bill of materials (BOM)
the roles of inventory
10. Quantities of each finished product to be completed for each period
distribution requirements planning (DRP)
master production schedule (MPS)
transit inventory
Global Trade Item Number (GTIN)
11. Specification of the amount of risk of incurring a stockout that a firm is willing to incur
rules of forecasting
lot-for-lot (L4L)
raw materials and components parts
service level policy
12. Consistent horizontal stream of demands
stable pattern
regression analysis
reorder point (ROP)
carrying (holding cost)
13. 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
demand planning
planned order release
collaborative planning - forecasting and replenishment (CPFR)
business model
14. Extra inventory held to guard against uncertainty in demand or supply
nervousness
planned order receipt
square root rule
buffer (safety) stock
15. The rule that a small percentage of items account for a large percentage of sales - profit - or importance to a company
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16. Regular demand patterns of repeating highs and lows
naive model (time-series - statistical)
seasonality and cycles
cycle counting
stockout
17. Forecasting model model that assigns a different weight to each period's demand according to its importance
weighted moving average (time-series - statistical)
Moore's law
basic questions to answer when planning inventories
MRO inventory
18. 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)
items included in the inventory record
available to promise
options to accomplish the objective of a chase plan
Pareto's law
19. inventory of an item is stored in two different locations
two-bin system
forecast accuracy
available to promise
master production schedule (MPS)
20. 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
planned order release
time series and analysis methods
collaborative activities in CPFR
life cycle waste assessment matrix (LCWAM)
21. items that are ready for sale to customers
finished goods inventory
load profile
days of supply
steps to determine order quantity when quantity discounts are available
22. The amount that is planned to arrive at the beginning of a period
available to promise
planned order receipt
dependent demand
advance planning and scheduling (APS) systems
23. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
vendor-managed inventory (VIM)
aggregate production plan
cost of a unit stockout
periodic order quantity (POQ)
24. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level
measures of inventory performance
independet demand
mixed or hybrid strategy
dependent demand
25. Forecasting model that computes a forecast ast he average of demands over a number of immediate past periods
stockout (shortage) cost
life cycle analysis
production order quantity
moving average (time-series - statistical)
26. 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
rules of forecasting
planned order receipt
regression analysis
inventory turnover
27. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
shift or step change
smoothing coefficient
Global Trade Item Number (GTIN)
mixed or hybrid strategy
28. A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
exponential smoothing (time-series - statistical)
transit inventory
options to accomplish the objective of a chase plan
requirements explosion
29. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
service level
demand management
economic order quantity (EOQ)
continuous review model
30. An estimate of the capacity needed at work centers
capacity requirements planning (CRP)
dependent demand inventory systems
mean absolute deviation / mean absolute error
moving average (time-series - statistical)
31. Systems that integrate materials and capacity planning into one system
difference between order & setup costs
demand forecasting
advance planning and scheduling (APS) systems
total system inventory
32. Expenses incurred in placing receiving orders from suppliers - including order preparation - transmittal - receiving - and A/P processing
two-bin system
order cost
Soft benefits of S&OP
life cycle waste assessment matrix (LCWAM)
33. The firm produces at a constant rate over the year
net requriements
level production strategy (aggregate production strategy)
carrying (holding cost)
exponential smoothing (time-series - statistical)
34. Items bought from suppliers to use in the production of a product
raw materials and components parts
mixed or hybrid strategy
cycle stock
the expense components of carrying cost
35. 1) Improve information accuracy and timeliness 2) Reduce lead time 3) Redesign the product 4) Collaborate and share information
product cost
ways to improve demand planning
order cost
Impact of lot size restrictions on quantity discounts
36. Unit selling price - unit cost
total acquisition cost (TAC)
the roles of inventory
historical analogy (judgement-based)
cost of a unit stockout
37. Decision process in which managers predict demand and make operational plans accordingly
demand forecasting
Managerial approaches to reducing inventory costs
shift or step change
carrying (holding cost)
38. Times series models use only past demand values as indicators of future demand. Causal models use other independent - observed data to predict demand.
days of supply
part number
causal models vs. simulation models
master production schedule (MPS)
39. An order for the same amount each time
cycle counting
assumptions underlying the EOQ formulation
exponential smoothing (time-series - statistical)
fixed order quantity (FOQ)
40. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
Impact of lot size restrictions on quantity discounts
materials requirements planning (MRP)
buffer (safety) stock
Wastes produced throughout the five product life cycle stages
41. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held
square root rule
rolling planning horizons
inefficiencies caused by unpredictably fluctuating customer demand
impact of raw material and compontent part stockouts
42. inventory management systems used when the demand for an item is beyond the control of the organization
forecast accuracy
quantitative ABC analysis procedure
independent demand inventory systems
Wastes produced throughout the five product life cycle stages
43. Management systems used when the demand for an item is derived from the demand for some other item
stable pattern
time bucket
master production schedule (MPS)
dependent demand inventory systems
44. The assumption that there is an infinite amount of capacity available
stockout
collaborative planning - forecasting and replenishment (CPFR)
life cycle analysis
infinite loading
45. The portion of average inventory determined as order quantity divided by two
trend
stockout
cycle stock
moving average (time-series - statistical)
46. The general sloping tendency of demand - wither upward or downward - in a linear or nonlinear fashion
mixed or hybrid strategy
lot-for-lot (L4L)
trend
measures of inventory performance
47. Replan each period (month or quarter) - for a given number of periods into the future
weighted moving average (time-series - statistical)
advance planning and scheduling (APS) systems
rolling planning horizons
service level
48. Management system built around checking and ordering inventory at some regular interval
rules of forecasting
demand planning
periodic review model
collaborative planning - forecasting and replenishment (CPFR)
49. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
Advantages of high inventory turnover
Three components of resource requirements planning
order cost
sales and operations planning (S&OP)
50. inventory that is in the production process
cycle counting
advance planning and scheduling (APS) systems
autocorrelation
work in process inventory