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. An order for the exact amount needed






2. A method of estimating the impact of changing the number of lcoations on the quantity of inventory held






3. Sum of all relevant inventory costs incurred each year






4. Management system built around checking and ordering inventory at some regular interval






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






6. 1) Asset productivity issues: measured by inventory turnover and days of supply 2) Effectiveness in meeting demand requriements - a.k.a. service level






7. 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






8. 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






9. 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






10. The firm produces at a constant rate over the year






11. Minimum level of inventory that triggers the need to order more






12. 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






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






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






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






16. Comparison of production needs to actual capacity






17. A product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known






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






19. Cycle stocks - safety stocks - managing locations - implementing inventory models






20. Measurement of how closely the forecast aligns with the observations over time






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






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






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






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






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






26. inventory classification - info systems - accurate records






27. 1) Influence the timing or quantity of demand through pricing changes - promotions - or sales incentives 2) Manage the timing of order fulfillment 3) Substitute by encouraging customers to shift their orders from one product to another - or from o






28. The amount of an item that is planned to be ordered in a period






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






30. 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






31. 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






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






33. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand






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






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






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






37. 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)






38. Determination of replenishement and postioining of finished goods in the distribution network






39. The part of panned production that is not committed to a customer






40. 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






41. The sum of the inventory held across all of the locations in a company






42. A combination of common sense inputs from frontline personnel and a computer simulation process






43. An estimate of the capacity needed at work centers






44. 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






45. 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.






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






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






48. Systems that integrate materials and capacity planning into one system






49. Proactive approach in which managers attempt to influence either the pattern or consistency of demand






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