LOGISTICS Exam #1
Risk present factors of _____ and _____ in a business.
uncertainty; vulnerability
These stockout costs occur when a seller has only a portion of the products ordered by the buyer.
backorder
These stockout costs still focus on past consumers instead of future consumers.
backorder
What value of alpha should be chosen?
between 0 and 1
Which of the dimensions of forecast error do the following statements describe? 1. consistently over or under forecasting
bias
The following are attributes of which type of risk? 1. Conceivable but unusual and unexpected events 2. very rare, black swan events
unknown-unknowns
The following are attributes of which type of risk? 1. major effect on operations 2. although you can't predict with accuracy, you can build resilient supply chain
unknown-unknowns
This is the perceived value of a product.
utility
Service recovery is...
vital
Everything that does not add value to meet customers' needs as efficiently and efficiently as possible.
waste
How do we calculate PTIS?
work days in stock / total work days
We are now in an era often referred to as the...
century of the consumer
What does CPFR stand for?
collaborate planning, forecasting & replenishment
The following attributes related to which of the three customer care dimensions: 1. variability of order lead time 2. variability = not good
consistency
Which logistical issue occurs due to consumers desire to have same day or fast delivery?
consumer service demands
Which logistical issue occurs through online shopping and showrooming?
consumer service demands
What helps service recovery?
contingency planning
You have to find the right predictive variables - the ones that really are related to Y - in which of the two quantitative forecasting methods?
correlational
Delivery capacity is...
cross functional
How do we calculate PIIS?
current stock / total inventory managed
Which consumer response to an out of stock product is described below: "consumer maintains interest in product but purchases later."
delay
Which of the qualitative forecasting methods does the following describe? 1. interactive pooling 2. pooling of expert opinion
delphi
Which of the successful collaborative CPFR activities do the following describe? 1. cadence calls 2. plan and discuss promotions and rolling horizons
demand and supply management
The following attributes describe which step in S&OP? Operating Review: 1. demand planning 2. forecast review 3. economic analysis 4. promotion planning 5. consensus forecast
demand review
The following attributes describe which step in S&OP? Strategic planning: 1. portfolio management 2. pricing strategy 3. brand management
demand review
The fundamental concept from lean logistics is...
eliminate waste
Which logistical issue occurs due to times changing and shopping online becoming more popular?
end consumer
Which of the successful collaborative CPFR activities do the following describe? 1. place orders 2. prepare and deliver shipments 3. receive and stock products 4. record sales 5. make payments
execution
Which of the qualitative forecasting methods does the following describe? 1. based on executive experience
executive experience
Is it expensive or inexpensive to get the right product at the right time?
expensive
Which of the qualitative forecasting methods does the following describe? 1. talk to the experts
expert panels
What is a more sophisticated method compared to a moving average?
exponential smoothing
Are the following examples of internal or external tools? 1. collaborate with major customers 2. detailed sharing of information lead to lower inventory and higher service levels 3. can be applied to suppliers as well as customers
exteral
Are the following examples of internal or external tools? 1. collaborative planning 2. forecasting 3. replenishing
external
What type of alignment concerns the following: 1. right for customer 2. right for product 3. other members of supply chain align
external
The following attributes related to which of the three customer care dimensions: 1. responsiveness of order lead time
flexibility
Which logistical issue occurs due to issues with infrastructure and natural disasters, for example.
flexibility
Which cost associated with stockouts considers if your customers will abandon you for a more reliable partner?
follow-on business
The difference between actual demand and the forecast.
forecast error
This is the repacking and refurbishing of a product.
form
Demand is stable and predictable for what types of products?
functional
Does a lean supply chain strategies provide functional or innovative products?
functional
These are staple products that are oftentimes purchased in grocery stores and gas stations.
functional products
These types of products satisfy needs which don't change much over time.
functional products
When we experience lost consumer stockout costs, we lose...
future revenues
Which logistical issue occurs when issues arise in sourcing, supplying, consuming, producing, and through administrative issues, such as lead times and shipping.
global
Which cost associated with stockouts considers how your customers view you and your rivals?
goodwill & reputation
Which of the qualitative forecasting methods does the following describe? 1. talk to customers
grassroots
The following description describes a _____-cost customer in an order _____ activity: 1. case or each picking 2. floor load
high; picking & processing
The following description describes a _____-cost customer in an order _____ activity: 1. sporadic ordering pattern 2. tight time windows with late fees
high; processing
The following description describes a _____-cost customer in an order _____ activity: 1. small orders placed one at a time 2. orders placed by phone or fax
high; receipt
The following description describes a _____-cost customer in an order _____ activity: 1. less than truckload orders 2. frequent expediting
high; shipment
Innovative products often have _____ profit margins.
higher
Which of the qualitative forecasting methods does the following describe? 1. use similar "product" from the past
historical analogy
Which cost associated with overstocks considers how much money does inventory and a place to store it cost.
holding costs
How do we calculate item fill rate (IFR)?
in stock units during span of time / total demand during span of time
Service failure is...
inevitable
Demand is unpredictable for what types of products?
innovative
Does an agile supply chain strategies provide functional or innovative products?
innovative
These products are characterized by adding a twist to an otherwise functional product.
innovative products
This part of S&OP stems from product review, demand review, and supply review.
integrated reconciliation
Are the following examples of internal or external tools? 1. collaborate with departments 2. detailed sharing of information lead to better execute 3 break down barriers, promote responsibility
internal
What type of alignment concerns the following: 1. corporate 2. marketing
internal
This is the number of order that a particular SKU can fulfill with inventory on hand.
item fill rate
What does IFR stand for?
item fill rate
Gatherings of people who are involved in the day-to-day management of the process.
kaizen events
What process do we use to explore the following knowledge: 1. How can this process be improved? 2. If we make this change, how will the rest of the process be affected?
kaizen events
The following are attributes of which type of risk? 1. Look at data to assess probability they will occur & the severity of their impact.
known-knowns
The following are attributes of which type of risk? 1. events with a track record 2. occur frequently
known-knowns
The following are attributes of which type of risk? 1. Ask a lot of "what if" questions when evaluating
known-unknowns
The following are attributes of which type of risk? 1. Events that you know could happen, but not consistent with a pattern 2. Assessment is speculative
known-unknowns
A _____ alpha level makes level more responsive to current demand data.
large
A _____ n makes level less responsive (smoother).
large
This is the time between when orders are placed and when the order is received and available for use/sale.
lead time
The following is an example of which types of supply chain strategies? HP
leagile
Which supply chain strategy pushes work in process to distribution centers and pulls finished goods from distribution centers?
leagile
Which supply chain strategy decentralizes postponement at distribution centers?
leagile supply chain
A _____ tool to improve the organization of processes.
lean
The following is an example of which types of supply chain strategies? Toyota VMI programs
lean
Which supply chain strategy pushed to distribution centers and pulls from distribution centers?
lean
What can guide Kaizen events, help in identifying eight wastes, and reduce wasted time.
lean 5 s methodology
Understanding what you customer wants and determining how to achieve that with the least waste or cost possible.
lean logistics
Which supply chain strategy forecasts pre-positioned inventory and replenish?
lean supply chain
Which consumer response to an out of stock product is described below: "lost a consumer as they move to competitor products or no longer have the demand."
leave
The art and science of "place".
logistics
The part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow of storage of goods, service and related information between the point of origin and the point of consumption in order to meet customers' requirements.
logistics
The role of _____ is to understand and serve the customer.
logistics
What is a source of competition for some companies through management?
logistics supply chain management
Value creation comes from...
logistics strategy
The network of organizations and activities engaged in managing the movement and storage of products and services as well as the flow of information from the course to the customer.
logistics system
The life cycle of a functional product is _____.
long
These stockout costs occur when customers permanently switch to another supplier?
lost consumer
Which cost associated with stockouts considers how much product you could have sold if you had the product in stock?
lost revenues
Consumers make a one time switch in which stockout cost?
lost sales
These stockout costs occur due to the consumer purchases that you could have had.
lost sales
Functional products often have _____ profit margins due to aggressive competition.
low
The following description describes a _____-cost customer in an order _____ activity: 1. full pallet picking 2. pallet-stacked loads
low; picking & preparation
The following description describes a _____-cost customer in an order _____ activity: 1. steady ordering pattern 2. flexible delivery time windows
low; processing
The following description describes a _____-cost customer in an order _____ activity: 1. volume, blanket contract 2. orders placed through web portal
low; receipt
The following description describes a _____-cost customer in an order _____ activity: 1. full truckload orders 2. infrequent expediting
low; shipment
Which of the dimensions of forecast error do the following statements describe? 1. degree to which a forecast is over or under
magnitude
Which cost associated with overstocks considers how much it will cost to either liquidate or dispose of old inventory.
markdown and disposal costs
Which of the qualitative forecasting methods does the following describe? 1. survey 2. focus groups
market research
Where does the answer to "what is logistics" start?
marketing
What does MAPE stand for?
mean absolute percent error
When using exponential smoothing, we look at what happened in the...
most recent period
Which of the logistics aspects are described below? 1. transportation
movement
How do we come to a total severity score?
multiple three attributes together
If anyone who touches an order drops the ball, delivery is _____ affected.
negatively
Do consumer's come back to the originally demanded product after switching to another supplier when a lost consumer stockout cost occurs?
no
This is considered to be a better measure of availability than "out of stock."
oh shelf availability
This occurs when a product is where it needs to be on shelf and available where the customers expect it to be.
on shelf availability
How do we calculate the perfect order index?
one time x complete x demand free x accurate invoice
Which cost associated with overstocks considers what you could you have done if money wasn't tied up in a product that wasn't selling?
opportunity costs
This occurs when a product is not in the system?
out of stock
This is the basic measure of inventory stock available to the marketplace.
percentage of items in stock
This is the time quantification of how a company is doing in terms of managing certain units of inventory.
percentage of time an item is in stock
The number of orders perfect on all elements
perfect order
Which utility demonstrates exactly where a product is needed.
place
Which of the logistics aspects are described below? 1. flow of information 2. tracking 3. visibility
planning
The following is an example of which types of supply chain strategies? grocery store
planning based
Which supply chain strategy pushes to the consumer?
planning based
Which supply chain strategy creates multiple forecasted throughout the supply chain.
planning based supply chain
This is the creation of desire of a product.
possession
How do we calculate expected cost per stockout?
probability(cost per backorder) + probability(cost per lost sale) + ( probability(cost per lost consumer)
Creating an accurate depiction of a process and performance.
process mapping
This can help to identify opportunities for improvement and define implementation plans.
process mapping
This is the most basic output of an order fulfillment system.
product availability
How do we calculate MAPE?
(actual - forecast) / actual
Which logistical issue allows for brands to reach different segments of the market.
product variety
Which logistical issue occurs because consumer want product the way that they want it.
product variety
Which logistical issue occurs when consumers can pick and choose what they want.
product variety
Which utility demonstrates the right amount of a product.
quantity
We can only use a weighted moving average when _____ demand data reflects _____ data.
recent; better
Which logistical issue occurs due to omnichannel of purchasing?
retail
What does RSFE stand for?
running sum of forecast error
What times do we prioritize in a Failure Modes & Effects Analysis?
sever items
On-shelf availability occurs when a product is in stock, but not where?
shelf
The life cycle of an innovative product is _____ due to competition.
short
Which of the five S's of lean methodology is described below: 1. have a logical place that everything fits 2. a place for everything 3. everything is in its place
simplify
A _____ alpha level makes forecast smoother, but less responsive to recent
small
A _____ n makes level very responsive to the last observed demand point.
small
What size of n should be chosen?
small
Which of the five S's of lean methodology is described below: 1. eliminate unneeded items from the area 2. store things not needed now 3. organize
sort
The following attributes related to which of the three customer care dimensions: 1. length of order lead time 2. consumers speed is increasing (1-2 day delivery)
speed
Which of the five S's of lean methodology is described below: 1. have standardized processes and procedure to maintain workplace order 2. ease training of new people
standardize
Logistics tries to avoid _____.
stockouts
Which of the logistics aspects are described below? 1. warehousing 2. in-transit
storage
Does the following customer expectation attributes related to a transactional relationship or strategic alliance: 1. outstanding service 2. low costs
strategic alliance
Does the following service offering attributes related to a transactional relationship or strategic alliance: 1. near 100% availability and on time delivery 2. real time transparency 3. low risks; rapid recovery 4. best cost solutions
strategic alliance
We should reclassify customers based on current _____ _____, not solely on sales
strategic issues
The role of logistics is to ask "What is the _____ the company is pursuing?"
strategy
Which of the successful collaborative CPFR activities do the following describe? 1. kick off meeting 2. develop operating framework
strategy and planning
Which consumer response to an out of stock product is described below: "switch over to competitor product other than intended product to purchase."
substitute
How do we calculate RSFE?
sum of (actual - forecast)
Companies that are _____ management focus outperform their competitors.
supply chain
The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.
supply chain management
The following attributes describe which step in S&OP? Operating Review: 1. production scheduling 2. order management 3. inventory planning 4. logistics planning 5. expediting
supply review
The following attributes describe which step in S&OP? Strategic planning: 1. make v. buy 2. manufacturing capacity 3. supplier development
supply review
Which of the five S's of lean methodology is described below: 1. continuously follow this approach 2. implement it throughout company
sustain
Which of the five S's of lean methodology is described below: 1. clean and organize each day as you use things 2. put them away
sweep
Which utility demonstrates when a product is needed?
time
Forecasts are based solely on k past values of the variable being predicted.
time series
We find exponential smoothing in which types of quantitative forecasting method?
time series
We find the moving average in which of the quantitative forecasting methods?
time series
Analyze the _____ between inventory and stockout costs.
tradeoffs
Does the following customer expectation attributes related to a transactional relationship or strategic alliance: 1. low costs 2. adequate service
transactional
Does the following service offering attributes related to a transactional relationship or strategic alliance: 1. efficient, hassle-free service 2. perform to promise 3. treat each customer fairly
transactional
Consumer expect.....
transparency
_____ service can help customers compensate when the unexpected happens.
transparent
Weights should add up to...
1
What are the four categories of customer order fulfillment?
1. availability 2. delivery 3. transparency 4. recovery
What are the three costs of stockouts?
1. back orders 2. lost sales 3. lost consumers
What are the eight benefits of S&OP?
1. balance supply and demand 2. smarter and faster production decisions 3. focus on new and/or promoted projects 4. minimize stockouts 5. reduce excessive inventory 6 more efficient procurement 7. shorter customer lead times 8. optimized transportation and logistics costs
Forecast error has two dimnesions. What are they?
1. bias 2. magnitude
What are two ways in which we can identify risk sources and severity?
1. brainstorm possible issues 2. use past events
What two types of risks can occur to a business?
1. common risk 2. potentially catastrophic risks
What are the three challenged to effective order management?
1. complexity 2. ownership 3. uncertainty
What are the two models used in quantitative methods of forecasting?
1. correlational models 2. time series models
As the weight density of an items increases, what happens to the following costs: 1. transportation 2. inventory 3. warehousing
1. decrease 2. decrease 3. decrease
As inventory levels increase, what happens to the following costs: 1. total 2. inventory 3. cost of lost sales
1. decrease then increase 2. increase 3. decrease
What are the eight main wastes?
1. defects 2. overproduction 3. waiting (wasted time) 4. not utilizing staff talent 5. transportation (excessive) 6. inventory (excessive) 7. motion (unnecessary) 8. excess processing
The specific steps within the S&OP focus the executive team on: 1. _____ opportunities for current and new products 2. _____ on the organization's ability to produce product to meet this demand
1. demand 2. constraints
We can only use a moving average when demand has no...
1. discernable trend 2. seasonality
What are the six steps in the contingency planning lifestyle?
1. disruption scanning 2. risk assessment 3. recovery plan 4. enact/execute 5. evaluate 6. improve
What are three advantages to using a moving average method?
1. easily understood 2. easily computed 3. provides stable forecast
What are the six issues that occur in logistics?
1. end consumer 2. product variety 3. flexibility 4. global 5. consumer service demands 6. retail
What are the three common risks a business could run into?
1. errors 2. traffic delays 3. shortage of staff
What are the three steps to calculating stockout costs?
1. evaluate customer response 2. estimate consequence costs 3. calculate the expected stockout costs
What are the six types of qualitative forecasting methods?
1. grassroots 2. market research 3. expert panels 4. executive judgement 5. historical analogy 6. delphi
The tradeoff analysis defines which two factors as being important to recognize?
1. improving services almost always costs money 2. determine what service is really important to the customer
As the susceptibility to loss and damage increase, what happens to the following costs: 1. packaging 2. transportation 3. warehousing
1. increase 2. increase 3. increase
As the value of items increase, what happens to the following costs: 1. inventory 2. transportation 3. packaging
1. increase 2. increase 3. increase
What are the two tools for integrated business planning>
1. internal tools 2. external tools
What four factors are demonstrated as having logistical trade offs?
1. inventory levels 2. value of item 3. susceptibility to loss and damage 4. weight density of an item
What are three types of risk?
1. known-knowns 2. known-unknowns 3. unknown-unknowns
What are the four steps in the continuous cycle of "plan, do, check, act."
1. look through eyes of consumer 2. eliminate process waster 3. eliminate wasted time and space 4. repeat and continuously revisit these steps
What are the three costs associated with stockouts?
1. lost revenues 2. goodwill & reputation 3. follow-on business
What two types of customers are these in terms of the customer service-related fulfillment costs?
1. low-cost customer 2. high-cost customer
The supply chain involved what four sources?
1. materials supplier 2. manufacturer 3. retailer 4. consumer
What are the three aspects of logistics?
1. movement 2. storage 3. planning
What are the top five disruption triggers?
1. natural disaster 2. extreme weather 3. conflict & political unrest 4. terrorism 5. sudden demand shock
What are the three potentially catastrophic risks that a business could incur?
1. natural disasters 2. strikes 3. global conflict
By understanding the _____ and the _____ of the end product, you can develop and design a supply chain that best FITS the product.
1. nature of demand 2. characteristics
When designing an order fulfillment system, two points apply:
1. not all customers are created equal not every fulfillment experience is equally critical
We can only use exponential smoothing when there is no...
1. observable trend 2. seasonality
What three costs are associated with overstock?
1. opportunity cost 2. holding cost 3. markdown & disposal costs
What are the 9 components of lead time?
1. order creation 2. transmittal 3. receipt 4. picking 5. staging 6. loading 7. transit 8. receiving 9. put away
What four activities correlate to customer service-related fulfillment costs?
1. order receipt 2. order processing 3. order picking & preparation 4. order shipment
Order transparency improves what three things?
1. planning 2. execution 3. evaluation
What are the four main types of supply chain fulfillment strategies?
1. planning-based supply chains 2. agile supply chains 3. lean supply chains 4. leagile supply chains
What are the four P's of marketing?
1. price 2. place 3. promotion 4. product
Products can be classified in what two ways?
1. primarily functional 2. primarily innovative
In a Failure Modes & Effects Analysis, we score on a scale from 1-10, 10 as being the high. What three aspects do these numerical scores measure?
1. probability of occurrence 2. severity with occurrence 3. ability to detect occurrence
The nature of product demand is determined by what five factors?
1. product life cycle 2. variety required 3. quantities required/lot 4. demand predictability 5. market standards for service and lead times
What are the two types of forecasting?
1. qualitative 2. quantitative
What are three disadvantages to using a moving average method?
1. requires saving all past n data points 2. lags behind a trend 3. ignores complex relationships in data
What are the seven rights of logistics?
1. right product 2. right consumer 3. right time 4. right condition 5. right quality 6. right place 7. right cost
What are the four steps in the risk management process?
1. risk identification 2. risk assessment 3. risk prioritization 4. risk mitigation
What are the 5 components of lean methodology?
1. sort 2. simplify 3. sweep 4. standardize 5. sustain
What are the three dimensions that customers care about delivery?
1. speed 2. consistency 3. flexibility
The logistical network design strategy for those competition with supply chain management include what six factors?
1. store within days from distribution center 2. economies of scale 3. shorter lead time 4. big cities 5. lower transportation costs 6. lower store costs with resources nearby
What are the four successful collaborative CPFR activities?
1. strategy and planning 2. demand and supply management 3. execution 4. analysis
What does SDL stand for?
1. substitute 2. delay 3. leave
What are the three factors involved in supply chain strategy?
1. supply strategy 2. operations strategy 3. logistics strategy
What are the three economic utilities?
1. time 2. place 3. quantity
What are the two factors on the relationship continuum?
1. transactional relationship 2. strategic alliance
What percentage of retail inventory is out of stock?
7-10%
The _____ rule states that 80% of sales come from 20% of consumers.
80/20
The following attributes describe what type of ABC classified customer: 20% of customers, 80% of sales
A
One way we can classify customers is through _____ classification.
ABC
The following attributes describe what type of ABC classified customer: 30% of customers, 15% of sales
B
The following attributes describe what type of ABC classified customer: 50% of customers, 5% of sales
C
A global, industry-wide process for trading partners to increase forecasting effectiveness through using joint business planning process and a common interface.
CPFR
The following are the beneficial results from what? 1. more efficient inventories 2. less stockouts 3. drive more sales for retailer and manufacturer
CPFR
Are the following examples of internal or external tools? 1. sales and operation planning (S&OP)
Internal
What should be held to utilize the knowledge of those who understand the best processes.
Kaizen events
This calculation demonstrates general availability.
PIIS
What is the abbreviation for percentage of items in stock?
PIIS
This calculation demonstrates availability at the SKU level.
PTIS
What is the abbreviation for percentage of time an item is in stock?
PTIS
An integrated business management process through which the executive leadership team continually achieves focus alignment and synchronization among all functions of the organization.
S&OP
What is the acronym used to describe the consumer response to out of stock products?
SDL
The following is an example of which types of supply chain strategies? aircraft construction
agile
Which supply chain strategy pulls from material supply?
agile
Which supply chain strategy has no work in process or finished goods inventories?
agile supply chain
Which of the successful collaborative CPFR activities do the following describe? 1. perform an after-action report 2. build relationships
analysis
Stockouts are related to which of the categories of customer order fulfillment?
availability
_____ costs money.
availability
