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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 ranking of all items of inventory acording to importance
ABC analysis
Advantages of high inventory turnover
mixed or hybrid strategy
demand during lead time
2. The sum of the inventory held across all of the locations in a company
total system inventory
finished goods inventory
advance planning and scheduling (APS) systems
days of supply
3. Supply chain partner firms share invormation and insights in order to generate better forecasts and plans
difference between order & setup costs
collaborative planning - forecasting and replenishment (CPFR)
setup cost
naive model (time-series - statistical)
4. Measurement of how closely the forecast aligns with the observations over time
forecast accuracy
reorder point (ROP)
transit inventory
inventory
5. The amount of an item that is planned to be ordered in a period
Delphi method (judgement-based)
marketing research (judgement-based)
planned order release
cumulative lead time
6. A detailed description of an "end item" and al ist of all of its raw materials - parts and subassemblies
bill of materials (BOM)
finished goods inventory
advance planning and scheduling (APS) systems
available to promise
7. A period of time when an unknown amount of inventory is on hand
transit inventory
uncertainty period
planning horizon
lot-for-lot (L4L)
8. The assumption that there is an infinite amount of capacity available
production order quantity
infinite loading
marketing research (judgement-based)
days of supply
9. 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
ways to improve demand planning
finished goods inventory
options to accomplish the objective of a chase plan
Pareto's law
10. inventory that is in the production process
work in process inventory
demand forecasting
demand during lead time
finished goods inventory
11. 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
target service level (TSL)
assumptions underlying the EOQ formulation
work in process inventory
ABC analysis
12. 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
Steps of designing a forecasting process
master production schedule (MPS)
transit inventory
independet demand
13. Specifies the production rates - inventory - employment levels - backlogs - possible subcontracting - and other resources needed to meet the sales plan
dependent demand
aggregate production plan
naive model (time-series - statistical)
Wastes produced throughout the five product life cycle stages
14. inconsistencies in the plan causes by changes to the MPS
nervousness
capacity requirements planning (CRP)
reorder point (ROP)
transit inventory
15. Small disturbance generated by a customer produces sucessively larger disturbances at each upstream stage in the supply chain
periodic review model
stockout
collaborative planning - forecasting and replenishment (CPFR)
bullwhip effect
16. Tool created by AT&T for assessing life cycle costs
life cycle waste assessment matrix (LCWAM)
collaborative planning - forecasting and replenishment (CPFR)
impact of raw material and compontent part stockouts
collaborative planning - forecasting and replenishment (CPFR)
17. Replan each period (month or quarter) - for a given number of periods into the future
rolling planning horizons
business model
life cycle analysis
difference between order & setup costs
18. inventory of an item is stored in two different locations
two-bin system
cost of a unit stockout
important trends influencing operations management and the emergence of business models
simulation models
19. Unit selling price - unit cost
demand forecasting
cost of a unit stockout
planned order receipt
Pareto's law
20. Software that consolidates all of the business planning systems and data throughout an organization
single period inventory model
enterprise resource planning (ERP) system
chase strategy (aggregate production strategy)
level production strategy (aggregate production strategy)
21. The number of days of business operations that can be supported with the inventory on hand = Current inventory/Expected daily demand
trend
types of costs that must be identified and quantified in aggregate planning
days of supply
capacity requirements planning (CRP)
22. 1) Balancing supply and demand 2) Buffering uncertainty in supply/demand 3) Enabling economies of buying 4) Enabling geographic specialization
causal models vs. simulation models
cycle counting
collaborative planning - forecasting and replenishment (CPFR)
the roles of inventory
23. 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
total system inventory
demand forecasting
Managerial approaches to reducing inventory costs
Advantages of high inventory turnover
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
two-bin system
cost of a unit stockout
types of costs that must be identified and quantified in aggregate planning
inventory turnover
25. Order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
autocorrelation
buffer (safety) stock
Wastes produced throughout the five product life cycle stages
economic order quantity (EOQ)
26. 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
Soft benefits of S&OP
Impact of lot size restrictions on quantity discounts
stockout
Delphi method (judgement-based)
27. Demand that depends upon decisions made by internal operations managers
smoothing coefficient
Impact of lot size restrictions on quantity discounts
causal models vs. simulation models
dependent demand
28. 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
regression analysis
measures of inventory performance
quantitative ABC analysis procedure
collaborative activities in CPFR
29. Technique that seeks inputs from people who are in close contact with customers and products
rought-cut capacity planning
shift or step change
impact of raw material and compontent part stockouts
grassroots forecasting (judgement-based)
30. Items bought from suppliers to use in the production of a product
bullwhip effect
raw materials and components parts
dependent demand inventory systems
periodic order quantity (POQ)
31. The probability of meeting all demand for an item = cost of a unit stockout / (cost of a unit stockout + cost of being overstocked by one unit)
the roles of inventory
target service level (TSL)
trend
types of costs that must be identified and quantified in aggregate planning
32. An estimation of the availability of the critical resources needed to support the MPS
buffer (safety) stock
rought-cut capacity planning
Advantages of high inventory turnover
time bucket
33. Amount paid to suppliers for products that are purchased
Wastes produced throughout the five product life cycle stages
product cost
shift or step change
cycle counting
34. Process to develop tactical plans by integrating customer-focused marketing plans for new and existing products with the operational management of the supply chain
stable pattern
bill of materials (BOM)
measures of inventory performance
sales and operations planning (S&OP)
35. A one-time change in demand - susually due to some external influence on demand
shift or step change
sales and operations planning (S&OP)
simulation models
quantitative ABC analysis procedure
36. Sum of all relevant inventory costs incurred each year
two-bin system
Disadvantages when inventory turnover is too high
Cost of being overstocked by one unit
total acquisition cost (TAC)
37. 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
square root rule
continuous review model
demand management tactics
life cycle analysis
38. A fixed time period that passes between inventory reviews
order interval
Delphi method (judgement-based)
rought-cut capacity planning
life cycle waste assessment matrix (LCWAM)
39. A planning system used to ensure the right quantities of materials are available when needed
master production schedule (MPS)
basic questions to answer when planning inventories
life cycle analysis
materials requirements planning (MRP)
40. 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
the financial impact of inventory
demand management tactics
Delphi method (judgement-based)
raw materials and components parts
41. Forecasting techniques that use input from high-level experienced managers
moving average (time-series - statistical)
demand forecasting
executive judgment (judgement-based)
assumptions underlying the EOQ formulation
42. Decision process in which managers predict demand and make operational plans accordingly
demand forecasting
measures of inventory performance
fixed order quantity (FOQ)
difference between order & setup costs
43. 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
inefficiencies caused by unpredictably fluctuating customer demand
smoothing coefficient
load profile
total system inventory
44. 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.
MRO inventory
naive model (time-series - statistical)
Impact of lot size restrictions on quantity discounts
forecast error
45. Forecasts developed by asking a panel fo experts to individually and repeatedly respond to a series of questions
lot-for-lot (L4L)
Hard benefits of S&OP
Wastes produced throughout the five product life cycle stages
Delphi method (judgement-based)
46. An order for the exact amount needed
single period inventory model
Techniques used to manage inventory
periodic review model
lot-for-lot (L4L)
47. 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
business model
regression analysis
available to promise
Global Trade Item Number (GTIN)
48. Supply of items held by a firm to meet demand
order interval
Disadvantages when inventory turnover is too high
inventory
inventory status file
49. Sophisticated mathematical programs that offer forecasters the ability to evaluate different business scenarios that might yield different demand outcomes
fixed order quantity (FOQ)
simulation models
available to promise
two-bin system
50. Cycle stocks - safety stocks - managing locations - implementing inventory models
reorder point (ROP)
Managerial approaches to reducing inventory costs
the financial impact of inventory
cost of a unit stockout