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. Amount paid to suppliers for products that are purchased






2. 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






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






4. The amount that is planned to arrive at the beginning of a period






5. 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






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






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






8. Unit selling price - unit cost






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






10. 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






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






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






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






14. 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






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






16. Comparison of production needs to actual capacity






17. items that are ready for sale to customers






18. Order costs are associated with replenishing inventories - while setup costs are associated with producing inventory internally. Both are often considered "fixed" regardless of batch size - although this is not strictly true.






19. Forecasting model model that assigns a different weight to each period's demand according to its importance






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






21. Quantities of each finished product to be completed for each period






22. 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






23. 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.






24. Unit cost + disposal cost - salvage value






25. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes






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






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






28. 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






29. 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






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






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






32. 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






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






34. 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






35. The ranking of all items of inventory acording to importance






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






37. A one-time change in demand - susually due to some external influence on demand






38. An illustration of the pattern of ordering and inventory levels






39. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain






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






41. Production processes halted






42. 1) Identify users and decision-making processes that the forecast will support. Consider time horizon - level of detail - accuracy vs. cost - fit with existing business processes 2) Identify likely sources of good data 3) Select forecasting techni






43. inventory that is in the production process






44. Process that adjusts prices as demand for a service occurs (or does not occur)






45. Forecasting models that compute forecasts using historical data arranged in the order of occurrence






46. Expenses incurred due to the fact that inventory is held






47. An order for the exact amount needed






48. An order for the same amount each time






49. The entire time period covered by the MPS






50. 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.