Learning Block 1-4 Test

Which is the best approach to achieve consensus for creating and finalizing the demand plan? 

• A) Management directives 

• B) Email 

• C) Social media 

• D) Collaboration

An estimate of future demand is defined as: 

• A) Demand forecast 

• B) Good customer service 

• C) Materials planning 

• D) Production planning 

What are the two key systems that receive inputs from the demand plan in order to procure goods and begin the conversion process?

• A) Customer Relationship Management (CRM) and Supplier Managed Inventory (SMI)

• B) Materials Requirements Planning (MRP) and Master Production Schedule (MPS) 

• C) Enterprise Resource Planning (ERP) and Warehouse Management Systems (WMS) 

• D) Request for Price (RFP) and Request for Quote (RFQ)  

Which demand planning duration has the least amount of uncertainty and lowest risk?

• A) Short-term 

• B) Long-term 

• C) Mid-term 

• D) Strategic

Identify the type of forecasting method that uses historical data for calculating future demand. 

• B) Qualitative Method  

• A) Quantitative Method  

• C) Marketing Method  

• D) Sales Method

What is the name of the costs that have already been spent (such as negotiation, research and development, purchase order management) when calculating total cost of goods sold? 

• A) Maintenance Costs 

• B) Order Fulfillment Costs 

• C) Acquisition Costs 

• D) Shipping Costs  

Which of the following is considered to be a binding contract? 

• A) Negotiation 

• B) Shipment Tracking  

• C) Supplier response to an Request for Pricing  

• D) Purchase order 

What are the two types of activity costs in the manufacturing process?   

• A) Shipping and Storage 

• B) Direct and Indirect  

• C) Dependent and Independent  

• D) Assets and Liabilities  

Which is the biggest management decision Procurement employees are responsible for? 

• A) Bid or auction 

• B) Make or buy

• C) Ship or Store 

• D) Import or Export

Which type of inventory management approach focuses on minimizing investment and carrying costs to maximize profit return on lowest average inventory investment while removing non-value added processes?

• A) Supplier Managed Inventory  

• B) Lean Inventory Management  

• C) Total Cost  

• D) Liquidity