Test 1

Service Industry

A business that does work for a customer, and occasionally provides goods, but is not involved in manufacturing.

What is Forecasting?

A decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth.

A type of inventory system that issues an order whenever a withdrawal is made from inventory, is known as? A. ABC System B. Bin System C. Base Stock Level System D. Single Period Inventory Model

Base Stock Level System

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product? A. Master Production Schedule B. Bill of Materials C. Distribution Requirement Plan D. Resource Requirement Plan

Bill of materials

Which one of the following is NOT a common mode of transportation in the supply chain? A. Air B. Bus C. Pipeline D. Rail E. Truck F. Water

Bus

Successful modern supply chain management typically includes the practice of? A. Keeping high inventories throughout the supply chain B. Always purchasing materials with the lowest per unit cost C. Collaborating and sharing information between supply chain partners D. Issuing ultimatums to your supply chain partners.

Collaborating and sharing information between supply chain partners

What does the acronym CPFR represent? A. Coordinated Planning & Forecasting Relationships B. Collaborative Planning, Forecasting, & Replenishment C. Centralized Purchasing & Forecasting Relationships D. Collaborative Purchasing, Forecasting, & Receivables

Collaborative Planning, Forecasting, & Replenishment

Master Production Scheduling

Delineates what products a manufacturer will produce, when and in what quantities.

Inventory costs which are independent of the output quantity are called? A. Indirect Costs B. Variable Costs C. Fixed Costs D. Carrying Costs

Fixed Costs

Which one of the following is NOT part of the SCOR model?A. Plan B. Source C. Forecast D. Make E. Deliver

Forecast

What is Material Requirement Planning?

It is a software-based integrated inventory and supply management system designed for businesses.

What is Collaborative Planning, Forecasting, and Replenishment?

It is an approach which aims to enhance supply chain integration by supporting and assisting joint practices.

What is goal of supply chain planning?

It is to balance supply and demand in a way that realizes the financial and service objectives of the company.

What is the goal of Supply Chain Management?

It is to increase customer service by increasing inventory and reducing costs..

The process of converting a parent item's planned order releases into component gross requirements is called? A. Lot Sizing B. MRP Explosion C. Bill of Materials D. Pegging

MRP Explosion

10 _______________________ measures the size of the forecast error in units. It is calculated as the average of the unsigned errors over a specified period of time. A. Mean Squared Error B. Mean Absolute Percent Error C. Running Sum of Forecast Errors D. Mean Absolute Deviation

Mean Absolute Deviation

Which one of the following is NOT a type of qualitative forecasting? A. Sales force composite B. Consumer survey C. Jury of executive opinion D. Naïve method

Naïve method

Chase Production Strategy

Refers to the notion that you are chasing the demand set by the market.

The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called? A. Resource Requirement Planning (RRP) B. Rough-cut Capacity Planning (RCCP) C. Capacity Requirement Planning (CRP) D. None of the above

Rough-cut Capacity Planning (RCCP)

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? A. Projected on-hand inventory B. Time bucket C. Net requirement D. Scheduled receipt

Scheduled Receipt

When creating a quantitative forecast, data should be evaluated to detect for a repeating pattern of demand from year to year, or over some other time interval, with some periods of considerably higher demand than others. This is known as a? A. Trend Variation B. Random Variation C. Seasonal Variation D. Cyclical Variation

Seasonal Variation

Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a? A. Best-of-breed solution B. Elite integrator solution C. Single integrator solution D. Premier application solution

Single Integrator solution

Which inventory stock level is generally used for a very specific purpose or future event, and for a defined period of time? A. Cycle Stock B. Safety Stock C. Strategic Stock D. Pipeline Stock

Strategic Stock

Which of the following statements is TRUE? A. Supply chain management was invented by the auto manufacturing industry B. Strategic partnerships are seen as one of the foundations of supply chain management C. Purchasing is seen as the final and most difficult step in the supply chain D. Logistics and Supply Chain Management are synonymous terms (i.e., they mean the same thing).

Strategic partnerships are seen as one of the foundations of supply chain management

In the absence of any other information or visibility, individual supply chain participants can begin second-guessing what is happening with ordering patterns, and potentially start over-reacting. This is known as? A. Forecast Bias B. The Bullwhip Effect C. A Tracking Signal D. The Running Sum of Forecast Errors

The Bullwhip Effect

What is Independent Demand?

The demand for a finished good, such as a car

What is the lowest inventory level

The lowest amount of a product that you can have in stock and still be able to meet customer demand

Which of the following is NOT an example of an ordering cost for products purchased from a supplier? A. The cost of transmitting the order B. The cost of receiving the product C. The cost associated with processing the invoice D. The opportunity cost of not ordering from a least cost supplier E. The cost of handling the product

The opportunity cost of not ordering from a least cost supplier

What do Service firms offer?

They provide businesses with specialist services by lawyers, financial advisers, IT consultants, accountants, architects and designers, to give some examples. These services help clients run their businesses and are sought when those skills aren't available in-house.

The primary purpose of the basic economic order quantity model is A. To calculate the reorder point, so that replenishments take place at the proper time B. To minimize the sum of carrying cost and holding cost C. To maximize the customer service level D. To minimize the sum of ordering cost and holding cost

To minimize the sum of ordering cost and holding cost

Cause-and-Effect Models can have multiple independent variables. A. True B. False

True

It was intense global competition that led manufactures to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT). True or False

True

Supply chain management starts with understanding the flow. (True or False)

True

The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost. True or False

True

The Qualitative forecasting method is based on opinion & intuition. A. True B. False

True

The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods. True or False

True

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy. True or False

True

The top 2 primary functions of inventory are (1) To meet customer demand, and (2) To buffer against uncertainty in demand and/or supply. True or False

True