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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. The determination of how many additional units are needed
Outputs of materials requirements planning (MRP)
requirements explosion
yield management
nervousness
2. Management system built around checking and ordering inventory at some regular interval
production order quantity
periodic review model
MRO inventory
finished goods inventory
3. 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
postponable product
the expense components of carrying cost
Hard benefits of S&OP
gross requirements
4. Correlation of current demand values with past demand values
two-bin system
dependent demand
autocorrelation
rolling planning horizons
5. inventory classification - info systems - accurate records
total system inventory
Techniques used to manage inventory
Outputs of materials requirements planning (MRP)
economic order quantity (EOQ)
6. A mathematical approach for fitting an equation to a set of data
quantitative ABC analysis procedure
regression analysis
marketing research (judgement-based)
items included in the inventory record
7. inventory management systems used when the demand for an item is beyond the control of the organization
planning horizon
independent demand inventory systems
level production strategy (aggregate production strategy)
requirements explosion
8. Amount paid to suppliers for products that are purchased
exponential smoothing (time-series - statistical)
product cost
seasonality and cycles
lot-for-lot (L4L)
9. Decision process in which managers predict demand and make operational plans accordingly
Wastes produced throughout the five product life cycle stages
Impact of lot size restrictions on quantity discounts
collaborative planning - forecasting and replenishment (CPFR)
demand forecasting
10. Model used to determine the order size for a one-time purchase
dependent demand
single period inventory model
planning horizon
the expense components of carrying cost
11. Supply of items held by a firm to meet demand
the financial impact of inventory
inventory
enterprise resource planning (ERP) system
stable pattern
12. 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.
demand during lead time
Steps of designing a forecasting process
Impact of lot size restrictions on quantity discounts
periodic review model
13. Forecasting models that compute forecasts using historical data arranged in the order of occurrence
Impact of lot size restrictions on quantity discounts
time series and analysis methods
Cost of being overstocked by one unit
sales and operations planning (S&OP)
14. 1) Rapid technological change 2) Increasing importance of sustainability 3) Growing roles of national and corporate cultures
master production schedule (MPS)
mean absolute deviation / mean absolute error
exponential smoothing (time-series - statistical)
important trends influencing operations management and the emergence of business models
15. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
reorder point (ROP)
moving average (time-series - statistical)
the roles of inventory
inventory status file
16. 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
service level
executive judgment (judgement-based)
life cycle waste assessment matrix (LCWAM)
Soft benefits of S&OP
17. Software that consolidates all of the business planning systems and data throughout an organization
enterprise resource planning (ERP) system
product cost
important trends influencing operations management and the emergence of business models
smoothing coefficient
18. 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)
focused forecasting
demand planning
service level policy
demand forecasting
19. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
aggregate production plan
master production schedule (MPS)
planned order release
periodic order quantity (POQ)
20. 1) MRP (Materials Requirements Planning) 2) DRP (Distribution Requirements Planning) 3) CRP (Capacity Requirements Planning)
Three components of resource requirements planning
stockout (shortage) cost
assumptions underlying the EOQ formulation
Cost of being overstocked by one unit
21. Forecasting techniques that use input from high-level experienced managers
production order quantity
executive judgment (judgement-based)
Advantages of high inventory turnover
days of supply
22. 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
rolling planning horizons
production order quantity
Managerial approaches to reducing inventory costs
23. 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
assumptions underlying the EOQ formulation
inventory turnover
independent demand inventory systems
product cost
24. 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
naive model (time-series - statistical)
types of costs that must be identified and quantified in aggregate planning
order cost
time series and analysis methods
25. How much should be ordered and when?
basic questions to answer when planning inventories
service level
collaborative planning - forecasting and replenishment (CPFR)
Outputs of materials requirements planning (MRP)
26. inventory of an item is stored in two different locations
two-bin system
Soft benefits of S&OP
the expense components of carrying cost
Techniques used to manage inventory
27. 1) Extraction 2) Production 3) Packaging and Transport 4) Usage 5) Disposal/Recycling
Wastes produced throughout the five product life cycle stages
moving average (time-series - statistical)
planned order receipt
Hard benefits of S&OP
28. Cycle stocks - safety stocks - managing locations - implementing inventory models
Managerial approaches to reducing inventory costs
mixed or hybrid strategy
executive judgment (judgement-based)
capacity requirements planning (CRP)
29. The total amount of an end item that is required
gross requirements
Wastes produced throughout the five product life cycle stages
stable pattern
cost of a unit stockout
30. Systems that integrate materials and capacity planning into one system
business model
advance planning and scheduling (APS) systems
cost of a unit stockout
production order quantity
31. Forecasting model model that assigns a different weight to each period's demand according to its importance
weighted moving average (time-series - statistical)
product cost
measures of inventory performance
the expense components of carrying cost
32. Administrative expenses and the expenses of rearranging a work center to produce an item
infinite loading
days of supply
setup cost
the financial impact of inventory
33. Forecasting technique that usees data and experience from similar products to foreast the demand for a new product
production order quantity
seasonality and cycles
historical analogy (judgement-based)
bullwhip effect
34. Process that adjusts prices as demand for a service occurs (or does not occur)
vendor-managed inventory (VIM)
planned order receipt
Disadvantages when inventory turnover is too high
yield management
35. Computing power will double every 18 months while computing cost will decrease by half
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36. Average size of forecast errors - irrespective of their directions.
planned order release
vendor-managed inventory (VIM)
mean absolute deviation / mean absolute error
rolling planning horizons
37. Demand that is created by customers
independet demand
life cycle waste assessment matrix (LCWAM)
time bucket
trend
38. An estimate of the capacity needed at work centers
economic order quantity (EOQ)
capacity requirements planning (CRP)
demand management tactics
postponable product
39. Consistent horizontal stream of demands
moving average (time-series - statistical)
days of supply
Steps of designing a forecasting process
stable pattern
40. 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.
difference between order & setup costs
steps to determine order quantity when quantity discounts are available
Pareto's law
independent demand inventory systems
41. Item ID system for finished goods sold to consumers (e.g. UPC. 12 or 14 digits)
level production strategy (aggregate production strategy)
the roles of inventory
Global Trade Item Number (GTIN)
difference between order & setup costs
42. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
the financial impact of inventory
bullwhip effect
work in process inventory
Impact of lot size restrictions on quantity discounts
43. inventory that is in the production process
stockout (shortage) cost
enterprise resource planning (ERP) system
the roles of inventory
work in process inventory
44. inventory is constantly monitored to decide when a replenishement order needs to be placed
periodic order quantity (POQ)
raw materials and components parts
continuous review model
distribution requirements planning (DRP)
45. items in transit from ont location to another
transit inventory
planning horizon
product cost
periodic review model
46. Process where each item in inventory is physically counted on a routine schedule
square root rule
cycle counting
options to accomplish the objective of a chase plan
raw materials and components parts
47. 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
ABC analysis
Outputs of materials requirements planning (MRP)
total acquisition cost (TAC)
Disadvantages when inventory turnover is too high
48. 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
demand management
rolling planning horizons
planned order release
49. 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
nervousness
steps to determine order quantity when quantity discounts are available
inventory turnover
cycle counting
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.
cost of a unit stockout
judgement-based forecasting
single period inventory model
raw materials and components parts