exam 2

Question 1

a committee for apply standardization should include which groups?

Answer 1

supply management, engineering, sales, operations, finance, reps from supplier and customer

Question 2

founded 1901
non-regulatory federal agency within the department of commerce’s technology administration
promote innovation an industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve quality of life

Answer 2

The National Institute of Standards and Technology (NIST)

Question 3

defines voluntary European standards for fields including chemicals, consumer products, energy, healthcare, and air and space

Answer 3

European Committee for Standardization (CEN)

Question 4

identifies voluntary standards for the electrotechnical filed to help facilitate trade, create new markets, and reduce compliance costs

Answer 4

European Committee for Electrotechnical Standardization

Question 5

largest standards settings organizations for materials, products, systems, and services
not for profit
voluntary standards are used in contracts, laboratories, architectural plans, and offices

Answer 5

ASTM International

Question 6

ISO 9000

Answer 6

fundamentals and vocabulary of quality management

Question 7

ISO 9001

Answer 7

Quality management systems, requirements

Question 8

ISO 9004

Answer 8

guidelines for performance improvements

Question 9

ISO 19011

Answer 9

guidelines for auditing quality

Question 10

ISO 20400

Answer 10

sustainable procurements

Question 11

ISO 28000

Answer 11

set of standards that address potential security issues at all stages of procurement process, which targets threats such as terrorism, fraud, and piracy

Question 12

ISO 14000

Answer 12

environmental standards

Question 13

ISO 17799 and 27001

Answer 13

guidelines for implementing and information security management system

Question 14

ISO 37001

Answer 14

help organizations fight bribery and promote ethical business practices

Question 15

enables better spend analysis using the five-level hierarchy system for more than 20,000 categories of products and services

Answer 15

United Nations Standard Products and Services Code (UNSPSC)

Question 16

umbrella organization that issues national standards based on consensus by all stakeholder organizations

Answer 16

American National Standards and Institute (ANSI)

Question 17

foster technological innovation and excellence for the benefit of humanity

Answer 17

Institute for Electrical and Electronic Engineers (IEEE)

Question 18

help procurement professionals make decisions and set a course of action that maintains a high level of integrity, adds value for employers and creates loyalty

Answer 18

Principles and Standards of Ethical Supply Management Conduct

Question 19

an organizations expense for creating a new product or service

Answer 19

Development Cost

Question 20

relationship between data sets and their relative clustering or dispersion within the sample or population. the smaller the ___, the more tightly the numbers will cluster around a central value

Answer 20

Variability

Question 21

the process of agreeing on a common specification. improves quality and leads to efficiencies and cost savings

Answer 21

Standardization

Question 22

basic system used to determine the quantity and timing requirements of dependent demand materials used in a manufacturing operation
master production schedule, BOM, and current inventory levels

Answer 22

Materials Requirements Planning

Question 23

time based demand from the distribution center to balance customer fill rate against inventory investment
informs organization about what products are on hand to fulfill existing orders

Answer 23

Distribution Requirements Planning (DRP)

Question 24

time-phased computerized inventory system to replenish inventory in multi-echelon warehousing system
plans for warehouse space, manpower requirements, transportation alternatives and financial flows

Answer 24

DRP II

Question 25

computer software designed specifically for managing the movement and storage of materials throughout the warehouse

Answer 25

Warehouse Management System (WMS)

Question 26

plan optimal transportation strategies based on projected expenditures, shipping routes, modes, and lead time

Answer 26

Transportation Management System (TMS)

Question 27

reverse logistics process

Answer 27

Returns Management System (RMS)

Question 28

process of establishing, measuring and adjusting the levels of capacity in an organization within the context of manufacturing resource planning (MRPII)

Answer 28

Capacity Requirements Planning (CRP)

Question 29

a physical stock checking system in which the inventory is divided into groups which are physically counted at predetermined intervals, depending on their ABC classification. thus, the physical inventory counting goes on continuously without interrupting operations or storeroom activities

Answer 29

Cycle Counting

Question 30

the function of identifying demands for products and services to support the marketplace. ___ encompasses the activities of forecasting, order planning and determining outside warehouse requirements, production balancing and spare parts

Answer 30

Demand Planning

Question 31

derived from or contingent upon the demand for another component or a finished product (the demand for axles used in assembly is dependent on the demand for the finished automobiles

Answer 31

Dependent Demand

Question 32

usually refers to a particular type of computer software package that integrates various functions within an organization. it may be used to enable processes such as forecasting, materials management, and purchasing

Answer 32

Enterprise Resource Planning (ERP)

Question 33

a plan outlining the mix of end products to be produced during a given week

Answer 33

Master Production Schedule (MPS)

Question 34

the ___ is a forward-looking plan for production or manufacturing. it includes a forecast over defined time periods (dates), plus customer orders, projected available balance, available-to-promise, and the master production schedule. a ___r uses the forecast, production plan and other considerations such as backlog, availability of materials, availability of capacity and management policies and goals to establish a ___

Answer 34

Master Schedule

Question 35

an order is placed whenever a withdrawal brings inventory position to a predetermined reorder point level

Answer 35

Reorder Point System

Question 36

items inventory position is reviewed on a schedule periodic basis rather than continuously risk of stockouts

Answer 36

Fixed Order Point System

Question 37

replenishment system where the size of the order remains fixed, while the time interval between them changes, depending on how quickly items are consumed

Answer 37

Fixed Order Quantity

Question 38

model that can be used to determine the quantity of an item to be ordered or manufactured that minimizes total acquisition and inventory carrying costs. most common in independent demand items managed in an order-point management system

Answer 38

Economic Order Quantity (EOQ)

Question 39

organizations inventory values are kept continuously in line with its actual inventory on hand after each purchase records are updated and if they fall below a certain point more will be ordered

Answer 39

Perpetual Inventory

Question 40

transactions are recorded as purchases are made. inventory only reviewed on a periodic basis

Answer 40

Periodic inventory

Question 41

in the context of inventory, this assign an inventory value for an item at the average cost paid

Answer 41

Average Costing

Question 42

demand based manufacturing strategy where items are pulled through coordinated manufacturing process based on the ongoing monitoring of customer demand

Answer 42

Flow Manufacturing

Question 43

a philosophy of operation which focuses on minimization of resources (including time) used in an enterprise. it employs a set of principles and practices to reduce cost through the relentless removal of waste through the simplification of all processes

Answer 43

Lean Production

Question 44

predetermined level that triggers an order. the level provides adequate inventory to be anticipated demand during the time it takes to receive the order

Answer 44

Reorder Point

Question 45

a measure of dispersion of data. ___ is calculated by finding the difference between the average and each actual observation, squaring each difference, summing all squared differences, dividing that by n-1 (n is the number of observations) and taking the square root of the results

Answer 45

Standard Deviation

Question 46

inventory management system that holds a supplier responsible for ensuring that stock is maintained at appropriate levels at the purchasers facility and for replenishing items when levels drop

Answer 46

Supplier-Managed Inventory (SMI)

Question 47

the ___ asserts that every entity in a system is a constraint, but only one can be defined as the critically constrained resource (CCR). all other entities or constraints are noncritically constrained resources (NCCR). the CCR controls the system. if an action reduces time at the CCR to less than the time at a NCCR, then the NCCR becomes the new CCR. this is true for any process until absolute line balance is achieved, one can think of the workstation/cell/process as a CCR or NCCR to the bigger system and repeat analytical ____ thought process for the larger system

Answer 47

Theory of Constraints

Question 48

a change in data caused by one of four: special cause, common cause, tampering or structural ___

Answer 48

Variation

Question 49

inventory management system that holds a supplier responsible for ensuring that stock is maintained at appropriate levels in the purchasers facility and for replenishing items when levels drop

Answer 49

Vendor Managed Inventory (VMI)

Question 50

the body of regulations used by all US federal executive agencies in the acquisition of supplies and services with appropriate funds. the ___ are compilation of all laws and policies governing the federal procurement process

Answer 50

Federal Acquisition Regulations (FAR)

Question 51

extends the principles of S&OP throughout the supply chain, product and customer portfolios, customer demand, and strategic planning to deliver one seamless management process and improve business performance

Answer 51

Integrated Business Process

Question 52

proactive compilation of requirements information regarding demand (from customers, sales, marketing, and finance), and the organizations capabilities from supply side such as supply, operations, and logistics management

Answer 52

Demand Management

Question 53

cross-functional, horizontal process led by senior management that works with internal business units to forecast anticipated demand, inventory, supply, and customer lead times based on the sales forecast, actual demand, capacity forecast, and the organizations business objectives

Answer 53

Sales and Operations Planning (S&OP)

Question 54

a collaborative process between buyer and seller involving the exchange of jointly developed sales forecast, inventory replenishment schedules, and promotion plans

Answer 54

Collaborative planning, forecasting, and replenishment (CPFR)

Question 55

formula for forecast error

Answer 55

forecast error=actual demand-forecast demand

Question 56

the average of the absolute values over a given number of time periods

Answer 56

Mean Absolute Deviation (MAD)

Question 57

standard deviation of the sampling distribution of the mean | measure of the uncertainty of a given forecast and can be used to create confidence intervals

Answer 57

Standard Deviation

Question 58

checked each time period to determine whether it falls outside some preset control limit if equal to 0, forecast is equal to actual demand greater than 0 indicates the actual demand exceeds the forecast less than 0 indicates the actual demand is less than the forecast

Answer 58

Tracking Signal

Question 59

an average of the squared errors taking the square of each error prevents positive and negative errors from canceling out each other, and amplifies the effect of large errors

Answer 59

Mean Squared Error (MSE)

Question 60

the process of anticipating future capacity requirements

Answer 60

Capacity Forecast

Question 61

setting the long-term direction of an organization. to be successful, an organization must approach ___ on three levels: (1) corporate: decisions and plans that answer the questions of "what business are we in?" and "how will we allocate our resources among these businesses"; (2) unit: these decisions mold the plans of a particular business unit, as necessary to contribute to the corporate strategy; (3) function: these plans concern the "how" of each functional area's contribution to the business strategy and involve the allocation of internal resources

Answer 61

Strategic Planning

Question 62

the network of entities providing materials or services and transforming them into a product or service used by a consumer. there is no unique ___ that fits across all organizations and industries. rather ___s will be designed to meet the needs of the organization

Answer 62

Supply Chain

Question 63

businesses that sell to other businesses and not to the general public. typically they sell products in large commercial quantities

Answer 63

Wholesaler

Question 64

all labor, goods, services, and capital are free from any government restrictions or trade barriers so they can move freely across national borders

Answer 64

Pure market economy

Question 65

country severely limits trade with the outside world, and relies on its own resources to support production and trade

Answer 65

Closed Economy

Question 66

mix of state-owned and private enterprises. most industrialized nations

Answer 66

Mixed Economy

Question 67

government interface with the free flow of goods and services that is considered harmful to the domestic economy

Answer 67

Protectionism

Question 68

exists when one of the trading companies can produce a unit of the good involved with less resources than the other, or when only one country has a particular resource

Answer 68

Absolute Advantage

Question 69

selling a product in other countries at price below those in the home market. illegal in most importing countries, US

Answer 69

Dumping

Question 70

what are the 5 phases of the business cycle?

Answer 70

the highest point of output before a down turn recession or shrinkage of the economy recession trough or lowest point in economic activity recovery or resuming growth path expansion (prosperity), beyond a previous high point

Question 71

measure of economic activity that changes before the business cycle does and thus indicates its future direction

Answer 71

Leading

Question 72

confirms a change has occurred in the economy and tends to follow changes in the economy

Answer 72

Lagging

Question 73

measure of economic activity that changes concurrently with changes in the business cycle

Answer 73

Coincident

Question 74

replaced GATT in 1995 164 member nations be more open to trade by lowering trade barrier such as customs duties (or tariffs) and discourage measures such as import bans or quotas that restrict quantities discourages unfair practices such as export subsidies, product dumping

Answer 74

World Trade Organization (WTO)

Question 75

What are Porter's 5 forces?

Answer 75

``` the extent and intensity of direct competition threat of entrants threat of substitute product or service power of buyers power of suppliers ```

Question 76

the process and result of gathering an analyzing information about aggregate forces (including economics) at work in trade and commerce in a specific service or commodity

Answer 76

Market Intelligence

Question 77

taking out an investment that will specifically reduce or cancel out the risk in another investment

Answer 77

Hedging

Question 78

a contract to exchange one form of currency for another at a specified exchange rate on some future date

Answer 78

Forward Exchange Contracts

Question 79

gives an organization the right to buy a given amount of currency at a specified exchange rate on or before a specified date, but do not require the organization to buy at the end of the period. gives some flexibility but are more expensive then forward exchange contracts

Answer 79

Currency Options

Question 80

family of indexes published by many nation agencies (US bureau of labor statistics) measure the average change over time in the prices received by domestic producers of goods and services based on selling price rather than on actual cost to produce an item

Answer 80

Producer Price Index (PPI)

Question 81

popular measure of price inflation for retail goods and services published monthly by US department of labor and other national agencies measure average change in retail prices over time for a basket of eight major groups with more than 200 categories of various goods and services

Answer 81

Consumer Price Index (CPI)

Question 82

a repetitive pattern of demand from year to year that indicates quantitative differences based on regular marketing and production cycles, model changeovers, seasonal discounts, and holidays

Answer 82

Seasonality

Question 83

value that allows data to be measured overtime in terms of some base period

Answer 83

Deflator

Question 84

measure of inflation, a factor used to eliminate prices changes in computing a nation's real changes in output

Answer 84

Implicit price deflator

Question 85

professional tool that organizations use to measure, investigate, and control price and cost changes within their own organizations

Answer 85

Custom Indexing

Question 86

the difference between the value of a nations exports to all other countries and the value of all imports from all other countries over a given time period

Answer 86

Balance of Merchandise Trade

Question 87

measure for the difference in the flow of funds across a nations boundaries

Answer 87

Balance of Payments

Question 88

a written instrument executed by a bidder or contractor (the principal) and a second party (the surety) to assure fulfillment of the principals obligation to a third party. Types of ___s include performance ___s, payment ___s, and bid ___s

Answer 88

Bond

Question 89

the value of goods or services received from suppliers and other creditors for which invoices have been received but not yet paid by the buying organization. also that branch of an organization which receives invoices and processes payments to suppliers and creditors

Answer 89

Accounts Payable

Question 90

(1) a situation in which the capacity to accommodate products is less than what is needed to ensure smooth flow through the system; (2) in a kraljic matrix or quadrant analysis, the ___ quadrant represents items that are low-value high-risk. items in this category are generally purchased in large quantities and inventory levels are monitored closely to avoid interruptions in supply

Answer 90

Bottleneck

Question 91

(1) any tangible good that can be bough, sold, or bartered, such as gold, silver, natural gas and oil or a bulk food product like grain, oats, corn, beef, pork bellies and coffee. currently, the term includes investment vehicles such as ___ futures. a ___ is traded on a commodities exchange that facilitates the trade and establishes and enforces rules and regulations about the trading process. Depending on its use and trading purpose a ___ may come in two types- cash and spot. a cash ___ is an actual ___ that is under a futures contract. a ___ is one that is traded on a spot market, pending delivery; (2) in supply management, the term ___ often refers to any good or services that is bought and sold in any trading arena

Answer 91

Commodity

Question 92

the reduction in average unit costs experienced as organization's volume increase

Answer 92

Economies of Scale

Question 93

the price of a currency as it is being exchanged for another

Answer 93

Exchange Rate

Question 94

a measure of a nations total output, which is the total value of all finished goods and services produced anywhere in the world by its agencies and firms during a certain time period (typically one calendar year)

Answer 94

Gross National Product (GNP)

Question 95

a comprehensive study of feasibility or viability of a new concept or idea, usually undertaken before entry into the marketplace

Answer 95

Market Analysis

Question 96

a tax imposed on imports and exports

Answer 96

Tariff

Question 97

in finance, the total number of shares, units or contracts traded in a security or market during a specified period of time

Answer 97

Volume

Question 98

system developed jointly by the US, Canada, and Mexico to classify business activity across North America. ___ is expected to replace the US Standard Industrial Classification (SIC) System

Answer 98

North American Industry Classification System (NAICS)

Question 99

comparison of prices in one year to a base year

Answer 99

Price Indices

Question 100

professional tool that organizations use to measure, investigate, and control price and cost changes within their own organization

Answer 100

Custom Indexing

Question 101

calculates the proportion of plant and equipment used in the manufacturing, mining, and electric and gas utility industries. represents the ratio of the industrial production index to plan and equipment capacity

Answer 101

Federal Reserve Board

Question 102

measure of a nations domestic output, which is the total value of all finished goods and services produced within a country within a given time period general measure of economic activity

Answer 102

Gross Domestic Product (GDP)

Question 103

exchange rates imposed by a country's government that differ, depending on the nature of the goods or services imported

Answer 103

Differential Exchange Rates

Question 104

currency exchange rate set and maintained by a government

Answer 104

Fixed Exchange Rate

Question 105

currency exchange rate determined by market forces rather than government decisions

Answer 105

Floating Exchange Rate

Question 106

measure statistical, but not causal, relationship between two variables

Answer 106

Regression Analysis

Question 107

used to describe the degree of relationship between two data series

Answer 107

Correlation

Question 108

method for examining the factors that influence changes in data series over time

Answer 108

Time Series

Question 109

weights the observations being averaged to give more weights to the most recent data

Answer 109

Exponential Smoothing

Question 110

interdependent decisions under uncertain conditions | maps alternative courses of action and their consequences

Answer 110

Decision Tree Analysis

Question 111

linear regression but more complex | used when data in a time series are stationary or can be transformed into a stationary series

Answer 111

Box-Jenkins Method

Question 112

a numerical modeling procedure using random or sample data to discover solutions to problems helps in decision making when there is a high level of uncertainty in the environment simulations developed using computer software and incorporated factors are considered innately unpredictable software provides a range of possible outcomes and the probability they will occur

Answer 112

Monte Carlo Methods

Question 113

calculates the average of the most current 'n' periods. in each recalculation the most current period's data is added and the oldest data is removed Data summed and then divided by the number of time periods used in the calculation

Answer 113

Simple Moving Average

Question 114

standardized protocols and data structures defined for each software or computer application that can be used to facilitate communication between software or computer applications

Answer 114

Application Program Interface (API)

Question 115

a monthly index issued by the US Federal Reserve Board that calculates capacity utilization in the manufacturing, mining, and electric and gas utilities industries. this index represent the ratio of industrial production index and equipment capacity

Answer 115

Capacity Utilization Index

Question 116

a statistical concept which defines the average of a distribution. normally measure by mean, median, and mode

Answer 116

Central Tendency

Question 117

a trend is general movement upward or downward. studying data to reveal such movement may lead to better decision-making. Factors that can create trends include changes in population, productivity, technology, supply/demand, price or costs

Answer 117

Trend Analysis

Question 118

buying on "spot" or open market for immediate delivery

Answer 118

Spot Buying

Question 119

buying more product than is required due to potential supply constraints or inflationary markets

Answer 119

Forward Buying

Question 120

purchases in excess of current and future known requirements with the intention of profiting from price movement and resale

Answer 120

Speculative Buying

Question 121

contracts established by buying organization to meet requirements for significant quantities of specific products or commodities with the primary objectives of ensuring supply, consolidating requirements to maximize purchasing leverage, and eliminating the carrying costs associated with bringing the entire required quantity into inventory at one time price negotiated based on the total number of items to be purchased or the total dollar amount to be spent with the supplier over a defined time period

Answer 121

Volume Purchase Agreements (VPA)

Question 122

award contracts to suppliers of raw materials or components for the life of the product

Answer 122

Life-of-Product Supply

Question 123

an agreement with a supplier to stock goods at a customer's location with the goods remaining the property of the supplier until used or sold

Answer 123

Consignment

Question 124

when a commodity or component is purchased over a long period, the value of the items inventory is considered average, based on the mix of quantities and prices of the items bought at different times averaging decreases the difference between short-term price fluctuations and long-term averages

Answer 124

Dollar Averaging

Question 125

a term commitment (usually one year or more) to a supplier for certain goods or services over a predetermined period of time at predetermined prices, or at prices to be determined based on market or other conditions. this practice is aimed at reducing the number of small orders, utilizing short term releases to satisfy demand requirements

Answer 125

Blanket Order

Question 126

strategies that determine the frequency and timing of purchases. these strategies are influenced by the current and projected requirements and supply market conditions, the speed of technological change and availability of funds

Answer 126

Buying strategies

Question 127

advance purchases for use in the next three weeks to three months

Answer 127

Buying to Requirements

Question 128

the computer-to-computer exchange of business information in a standard format. transaction documents, such as purchase orders, invoices, and shipping notices, are transmitted electronically and entered directly into a supplier's (or purchaser's) computer or into a third-party network for processing

Answer 128

Electronic Data Interchange (EDI)

Question 129

contract for the purchase or sale and delivery of commodities or currencies at a specified future date for a specified price. primarily used as hedging device against market price fluctuations or unforeseen supply shortages

Answer 129

Futures Contract

Question 130

regulated exchange using standardized futures contracts to buy or sell something (typically commodities or financial products at a particular time for a particular price)

Answer 130

Futures Market

Question 131

a measure of the velocity of total inventory movement through the organization, found by dividing annual sales (at costs) by the average aggregate inventory value maintained during the year. the higher turnover, generally, the more favorable the measure

Answer 131

Inventory Turnover

Question 132

a method for the effective planning of all resources used in a manufacturing organization. ideally, it addresses operational planning units and financial planning in dollars, and has a simulation capacity to answer "what if" questions. it is comprised of a variety of functions, each linked together: business planning, sales and operations planning, production planning, master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and materials. ___ is a direct outgrowth and extension of closed-loop material requirements planning (MRP)

Answer 132

Manufacturing Resource Planning (MRP II)

Question 133

the stage in the product life cycle characterized by slower increases in sales, decline in profits, more competition and some marketplace exits

Answer 133

Maturity Stage

Question 134

a replace-on-consumption process in which material moves only when specifically "pulled" by a user. pull processes can be created throughout a supply chain. in procurement, shipments occur (under an umbrella contract) when a user signals a supplier that goods have been consumed. in distribution, field inventory is replenished by decisions made at the field warehouse, not at a central point. in production, items are produced only to replace those withdrawal for use. in inventory control, materials are issued only on a signal from a user. typically the process of pulling and replacing material is accompanied by minimum paperwork

Answer 134

Pull System

Question 135

reduction in inventory that occurs when items are lost, stolen or misplaced. can also occur naturally through evaporation or age and so on

Answer 135

Shrinkage

Question 136

the volume of output generated by a resource in a specific period of time

Answer 136

Throughput

Question 137

the movement of money through an organization. it is the measure of inbound revenues and outbound expenses by time period

Answer 137

Cash Flow

Question 138

the process of overseeing and maximizing the financial and operational value of a group of related commodities, products or services by identifying and monitoring total spend and consumption, keeping abreast of market shifts, new alternatives or inventions, forecasting market supply and demand, and continuously evaluating supplier performance in order to drive down costs, improve supplier performance, and respond to changing business requirements and/or enhance stakeholder satisfaction

Answer 138

Category Management

Question 139

refers to both internal partnering to define demand as well as working with suppliers. while often associated with vendor managed inventory or utilization of software, the process changes required within a business to reap benefits can be significant, as are the potential rewards for making such changes

Answer 139

Collaborative Inventory Management

Question 140

a collaborative process between buyer and selling involving the exchange of jointly developed sales forecasts, inventory replenishment schedules and promotion plans. both parties benefit from these co-managed process and shared information

Answer 140

Collaborative Planning, Forecasting and Replenishment (CPFR)

Question 141

the stages a product goes through from beginning to end. five distinct stages are: design, introduction, growth, maturity and decline

Answer 141

Product Life Cycle

Question 142

(1) exposure to a chance or probability of loss or damage. (2) in supply management, exposure to business loss or interruption, of access to raw materials, manufactured goods, capacity, or other key materials, products or services required by the buying organization to execute its business plane. (3) from a legal perspective, consequences from some action or inaction. (4) in insurance law, the peril or casualty covered by the contract of insurance

Answer 142

Risk

Question 143

the strategy and management of continuous, value-added processes across organizational boundaries to meet the needs of the end customer, while incorporating a structured approach, combined with the use of best-practice tools, to enable the development of comprehensive sourcing strategies that deliver maximum long-term value

Answer 143

Supply Chain Planning

Question 144

a voluntary, nonprofit organization that establishes cross-industry standards to simplify the flow of product and information in the general merchandise retail industry. GS1 US and Voluntary Interindustry organization merged in 2012

Answer 144

Voluntary Interindustry Commerce Standards (VICS)

Question 145

calculated by dividing the absolute forecast error by the actual demand for each time period

Answer 145

Mean Absolute Percentage Error (MAPE)

Question 146

in statistics, a measure of accuracy used in time series analysis

Answer 146

Mean Squared Error (MSE)

Question 147

when a population is normally distributed, ___ is the population standard deviation divided by the square root of the sample size

Answer 147

Standard Error of the Mean

Question 148

the degree to which relevant data or information is accessible to all involved in the supply chain

Answer 148

Supply Chain Visibility

Question 149

formula for target cost

Answer 149

target cost=expected price-desired profit

Question 150

redefine a family of products or services | if successful, result in significant strikes in pass its competition and improving profitability

Answer 150

Breakthrough Ideas

Question 151

process changes that improve the delivery or quality of an existing product or services while reducing costs

Answer 151

Incremental Ideas

Question 152

results in add-on features that extend, improve, or modify existing product, service or processes

Answer 152

Derivative Ideas

Question 153

result in product and services that are uniquely created to meet the specific demands of one customer

Answer 153

Customized Ideas

Question 154

an approach to product or service development in which key stakeholders are involved early and continuously in the design stage to shorten cycle time and to ensure that manufacturability, procurement, reliability, maintenance, scheduling, delivery and marketing are considered simultaneously rather than sequentially

Answer 154

Concurrent Engineering

Question 155

often used interchangeably with "term", a provision in a contract. in traditional common law a distinction is drawn between ___ precedent and ___ subsequent

Answer 155

Condition

Question 156

legal requirement for creation of a valid contract involving an exchange of value for value

Answer 156

Consideration

Question 157

an evaluation of actual or anticipated cost data (material, labor, overhead, general and administrative, and profit). the application of experience, knowledge and judgement to data to project reasonable estimated contract costs. estimated costs serve as the basis for buyer-seller negotiations to arrive at mutually agreeable contract prices

Answer 157

Cost Analysis

Question 158

an accounting classification that accumulates the monetary value of direct materials, direct labor and allocated overhead in products sold during a given time period. it is used to calculate earnings for the period, typically a year

Answer 158

Cost of Goods Sold (COGS)

Question 159

an effort to lower the costs associated with acquiring a particular product or service

Answer 159

Cost Reduction

Question 160

groups of individuals from various organizational functions who are brought together to achieve clear, worthwhile and compelling goals that could not be reached without a team. teaming leverages organizational resources while utilizing the expertise of team members. purchasers typically participate on teams dealing with sourcing, commodities, quality, and new product/service development

Answer 160

Cross-Functional Team

Question 161

a practice that involves purchasing professionals in the new product or service development process from its inception

Answer 161

Early Purchasing Involvement (EPI)

Question 162

a practice that brings together one or more selected suppliers with a buyer's product or service design team early in the product development process. the objective is to utilize the supplier's expertise and experience in developing a product specification that is designed for effective and efficient product roll-out

Answer 162

Early Supplier Involvement (ESI)

Question 163

a cost analysis tool that incorporates the purchase price of a piece of equipment and all operating and related costs over the life of the item; including maintenance, downtime, energy costs and salvage value. cost of ownership is often divided by expected lifetime production to determine cost-per-piece. ___ is the concept of total cost of ownership applied to capital acquisitions

Answer 163

Life-Cycle Costing

Question 164

the capacity or likelihood that a product can actually be produced profitably following product conceptualization and design

Answer 164

Manufacturability

Question 165

the identification and analysis of the components necessary to satisfy a particular business requirement

Answer 165

Needs Analysis

Question 166

a series of integrated processes in new ___ chronicling steps from idea conception to commercialization

Answer 166

Product Development

Question 167

a new product model built so that testing and performance evaluation can be done prior to release to manufacturing

Answer 167

Prototype

Question 168

the process of agreeing on a common specification. this process can take place at different levels: (1) across an organization; (2) throughout an industry; (3) across nations; (4) around the world

Answer 168

Standardization

Question 169

the analysis of existing or new suppliers on the basis of key performance indicators such as technical quality, production, capacity, delivery, service, cost and managerial capabilities which are included in the spec of the statement of work

Answer 169

Supplier Analysis

Question 170

(1) a structured approach to determine the life-cycle costs at which a proposed product with a specified functionality and quality must be produced to generate the desired level of profitability over its life cycle when sold at its anticipated selling price; (2) used in supply management to identify the allowable price for a supplier's product or service which starts with the selling price of the buyer's end product or service in the marketplace and subtracting out required profit. the amount remaining is the total that it can costs the organization to make the product or to perform that service, including materials. this cost is allocated among purchases and internals costs, with the result being the target cost for each item. purchasing then works with suppliers to ensure that their prices come in at or below the target costs. further analysis and negotiation then seeks to remove costs from both the buyer's and seller's operations to reduce the price to the acceptable target level

Answer 170

Target Costing

Question 171

value analysis conducted at the design engineering stage of the product development process

Answer 171

Value Engineering

Question 172

a financial statement that shows the flow and timing of cash into and out of the organization

Answer 172

Cash Flow Statement

Question 173

any grouping of businesses, regardless of type of ownership, that share a common method of generating profits

Answer 173

Industry

Question 174

proposals to make a contract; a binding expression of interest and willingness to create a contractual relationship usually including certain terms

Answer 174

Offer

Question 175

a consumer's preference for a particular brand in a product category because the consumer perceives that the brand offers the right product features, images or level of quality at the right price. often, such consumer is willing to pay a higher price for that brand over other brands

Answer 175

Brand Loyal

Question 176

suppliers that meet the organizations selection criteria and have been added to the approved list

Answer 176

Approved Suppliers

Question 177

a group of suppliers that an organization has determined meet its expectations for quality, delivery, and/or price, and are able to respond to unexpected changes

Answer 177

Preferred Suppiers

Question 178

close relationship between buyer and seller to attain some advantages from each other in a positive way

Answer 178

Partnered Suppliers

Question 179

one whose quality control system has proven to be highly reliable, thus eliminating the need for incoming inspection

Answer 179

certified supplier

Question 180

global organization of more than 128,000 engineers and other technical experts

Answer 180

SAE International

Question 181

global organization dedicated to quality and sustainability in the information and communication technology industry based on 9001, but industry specific

Answer 181

QuEST Forum

Question 182

steps in the ISO certification

Answer 182

``` inquiry into registration process Contract registrar certification audit processes audit final certification audit rolling certification audits ```

Question 183

measuring quality performance and comparing it with specifications requirements as a basis for controlling output quality levels

Answer 183

Quality Control

Question 184

a group of workers doing similar work, who voluntarily meet regularly during normal working hours to identify, analyze and implement improvement opportunities

Answer 184

Quality Circle

Question 185

a structured method for translating user requirements into detailed design specifications using a continual stream of what/how metrics. QFD links the need of the customer (end user) with design, development, engineering, manufacturing, and service functions. it helps organizations seek out both spoken and unspoken needs, translate these into actions and designs, and focus various business function toward achieving this common goal

Answer 185

Quality Function Deployment (QFD)

Question 186

a system of strategically placed quality inspection steps to ensure discrepant parts are not passed to the next operation and that processing error feedback is quickly provided to the station which produced the defect

Answer 186

Quality Gate

Question 187

management function that includes establishing specifications that can be met by suppliers; using suppliers that have the capacity to provide adequate quality within those specifications; applying control processes that ensure high-quality product, service, cost performance of suppliers, and comparing it with requirements

Answer 187

Quality Assurance

Question 188

What are the seven basic tools of quality?

Answer 188

``` Histograms pareto charts cause and effect diagrams check sheets scatter diagrams flowcharts or process maps control charts ```

Question 189

diagram of values being measured versus the frequency with which each occurs

Answer 189

Histogram

Question 190

graph showing the frequency with which events occur, arranged in order of descending frequency used to rank issues so that resources can be applied first to those with the largest potential return

Answer 190

Pareto Chart

Question 191

data gathering tools that can be used in forming histograms

Answer 191

Check Sheets

Question 192

graph used to analyze the relationship between two variables

Answer 192

Scatter Diagrams

Question 193

used in statistical process control (SPC) to record, measure, and analyze variations in a process to determine whether outside influences are causing a process to go out of control

Answer 193

Control Chart

Question 194

what are the seven managerial tools for improvement?

Answer 194

``` affinity diagram interrelation digraph tree diagrams matrix diagram prioritization matrices process decision program chart activity network diagram ```

Question 195

total quality management tool in which the member of a team each sort data in silence, looking for associations after sorting the team identifies the associations found, the critical links, and the issues that emerged

Answer 195

Affinity Diagram

Question 196

after affinity diagram, used to understand the causal relationship between the different issues surfaced

Answer 196

Interrelationship Digraph

Question 197

affinity diagram, key issues identified relating to the problem, this diagram identifies steps needed to address the given problem

Answer 197

Tree Diagram

Question 198

show the relationship between two, three, or four groups of information

Answer 198

Matrix Diagram

Question 199

different priorities are obtained from the tree and matrix diagrams, weighted matrices are used to prioritize which variables or topic should be emphasized

Answer 199

Prioritization Matrices`

Question 200

tool used to help brainstorm possible contingencies or problems associated with the implementation of some program or improvement

Answer 200

Process decision program chart

Question 201

technique using the application of statistical control charts in measuring and analyzing the variation in processing operations

Answer 201

Statistical Process Control (SPC)

Question 202

two purposes of process capability (Cpk)

Answer 202

to determine if a process consistently results in products that meet specifications to determine if a process is in need of monitoring through the use of permanent process charts

Question 203

a quality level that represents the process limit of a measured attribute averaged from a series of satisfactory lots. typically used for sample inspection

Answer 203

Acceptable Quality Level (AQL)

Question 204

a statistical procedure for measuring a random sample of a lot of material to determine acceptability of the whole lot. the entire lot may be accepted or rejected based on the results of the sample as the sample is assumed to be representative of the population. involves determine the maximum number of defects discovered in a sample before the entire batch is rejected

Answer 204

Acceptance Sampling

Question 205

a process improvement method that offers a practical approach to improvements, whether at the office, logistics function or the warehouse. by assigning everything a location, time is not wasted looking for items

Answer 205

Five S

Question 206

W Edward Deming's four step process for improvement: plan (analyze problem), do (develop and test possible solution), check (measure effectiveness), act (implement fully)

Answer 206

Plan-Do-Check-Act

Question 207

a measurement of supplier quality that compares existing processes, constraints in these processes and competitive technologies that may be available to meet customer needs. Two indices commonly used to measure ___ are Cp and Cpk

Answer 207

Process Capability

Question 208

a reduction in the number of sizes and designs of an item that an organization uses

Answer 208

Simplification

Question 209

application of a set of statistical techniques to control quality. ___ includes both statistical process control and acceptance sampling

Answer 209

Statistical Quality Control (SQC)

Question 210

Activity network diagram is also known as what?

Answer 210

PERT

Question 211

method of drawing a pictorial representation of a process that breaks the process into key activities, transfers, decisions and approvals

Answer 211

Process Mapping

Question 212

formula for value-added ratio

Answer 212

total value-add activity cost divided by the total process cost

Question 213

road map developed by an organization to help it assess, measure, and improve its contract management processes and relationships, including roles and responsibilities, time lines, performance management and cost measures effectiveness of an organizations contract management process and helps it identify the level of maturity: ad hoc, basic, structured, integrated, or optimized

Answer 213

Contract Management Maturity Model (CMMM)

Question 214

a performance measurement system developed by Kaplan and Norton which links performance measure to each other and to the organizations vision and strategy. the key performance categories are financial performance, customer knowledge, internal business processes, and learning and growth

Answer 214

Balanced Scorecards

Question 215

a method for evaluating and measuring the maturity of the software development process of organizations on a scale of 1 to 5. the CMM was developed by Software Engineering Institute (SEI) at Carneige Mellon Univeristy in Pittsburgh Collection of best practices that aid organization in improving their processes

Answer 215

Capability Maturity Model-Integrated (CMMI)

Question 216

processes that are used to maximize value by ensuring that a contract is initiated, utilized, fulfilled, modified and completed in a system fashion that ensures stakeholder value is maximized and risk is minimized.

Answer 216

Contract Management

Question 217

the time required to complete a process, such as replenishing inventory

Answer 217

Cycle Time

Question 218

one of the seven tools of quality management, a ___ is a diagram of the steps of a process. each step is identified in sequence along with its key characteristics, such as time involved

Answer 218

Flow Chart

Question 219

a systematic, centralized organizational effort to manage the surplus/obsolete equipment/material and scrap recovery/marketing/disposition activities in a manner that recovers as much of the original capital investment as possible

Answer 219

Investment Recovery

Question 220

a methodology used to examine the different stages and requirements of projects, software or products to enable moving to the next step or level

Answer 220

Maturity Models

Question 221

a type of supplier audit that checks the suppliers costs, quality, delivery and other critical processes for capability and improvement

Answer 221

Process Audit

Question 222

the supply chain operations reference model is a process reference model that has been developed and endorsed by the Supply Chain Council as the cross-industry standard diagnostic tool for supply management. a business process model that integrates processes, metrices, best practice and technology to enhance supply performance

Answer 222

SCOR Model

Question 223

software application that enables firms to track and capture transportation spending and costs, manage transportation contracts, rank transportation options, clear customs, track product movements in real time, track carrier performance, and determine the best use of containers and truck trailers

Answer 223

Transportation Management System (TMS)

Question 224

joint US government-business initiative to build cooperative relationships that strengthen overall supply chain and border security

Answer 224

Customs Trade Partnership Against Terrorism (C-TPAT)

Question 225

a general term applying to those things sought from a partner company when one's own does not have the technology, capability, talent, time or capacity to provide on their own. unlike outsourcing, which is generally about costs, asset and head-count reduction, ___ is a top-line concept, where revenue growth and market growth are the pursuits

Answer 225

Access

Question 226

name port destination. an incoterm rule under which goods are considered to be "delivered" (and buyer assumes risk of loss) when they pass the ships rail in the port of shipment. the seller is responsible for clearing the goods for export and for ___ to bring the goods to the destination port. this term can only be used for waterway transportation

Answer 226

Cost and Freight

Question 227

the branch of government charged with the administration of policies and procedures for the import and export of goods

Answer 227

Customs

Question 228

business activities of an enterprise that utilize the technology of the computer, including such tools as EDI, the internet, intranets and/or extranets to streamline and enhance commercial transactions of both private and public sector entities

Answer 228

Electronic Commerce

Question 229

the carrier's invoice for transportation charges applicable to a shipment

Answer 229

Freight Bill

Question 230

the specific designation or image of a person, product, service, or organization relative to competitors in the same market space

Answer 230

Positioning

Question 231

action of one party pursuant to specific contract language to end a contract for some reason other than breach by the other party

Answer 231

Termination

Question 232

a materials management activity that controls buying, scheduling, auditing and billing of common and contract carriers

Answer 232

Traffic

Question 233

the management of activities associated with buying and controlling transportation services for a shipper or consignee or both. in many companies the ___ department has been integrated into the logistics department

Answer 233

Traffic Management

Question 234

a third-party service provider that makes transportation arrangements, and fills out forms under power of attorney. combine small shipments from multiple shippers into full loads. they make a profit on the difference between what they charge the shipper and the discounted price

Answer 234

Freight Forwarder

Question 235

sales representatives that work for charter vessel owners, acting as middlemen between the shippers and ship owners

Answer 235

Ship Broker

Question 236

represent a ship operator while the ship is docked in port, and manage its arrival, berthing, loading, unloading, and customs clearance. arrange for the payment of fees that are due while the ship is in port

Answer 236

Ship Agents

Question 237

licensed to enter and clear goods through customs. all documentation and given power of attorney to pay any import duties

Answer 237

Customs house broker

Question 238

hasten the movement of goods through customs based on their country-specific knowledge on rules and regulations on packaging. ensure right level of protection against climate changes and rough handling

Answer 238

Export Packer

Question 239

management of both inbound and outbound materials, parts, supplies and finished goods for other organizations. often separate entity established as a joint venture or a long term contract between a primary client and one or more partners that act as a single interface between the client and multiple logistics service providers

Answer 239

Fourth-Party Logistics

Question 240

performs the highest and most complex level of outsourced services. focused on global operations using an e-logistics network. they use the clients existing technology and infrastructure to optimize the supply chain by transforming it into a virtual organization

Answer 240

Fifth Party Logistics

Question 241

cargo receipt and transportation contract between shipper and carrier. equivalent documents are the air waybill and mulimodal bill of lading

Answer 241

Bill of Lading

Question 242

record of all documents that will accompany the shipment and their final disposition, along with any special instructions

Answer 242

Transmittal Letter

Question 243

Document that assures the seller that payment will be made by the bank issuing the letter of credit upon fulfillment of the terms of the sales agreement

Answer 243

Letter of Credit

Question 244

a statement of precisely where (in what country) the goods were produced

Answer 244

Certificate of Origin

Question 245

transfers the responsibility for the cargo between the international and domestic carrier

Answer 245

Dock Receipt

Question 246

required government form to track exports for statistical purposes

Answer 246

Export Declaration

Question 247

a control document to track and identify goods shipped to other countries

Answer 247

Consular invoice

Question 248

declares a shipment's expected arrival time and relevant shipment details

Answer 248

Arrival Notice

Question 249

authority from the consignee to th ocean carrier to release the cargo to a specified inland carrier

Answer 249

Delivery Order

Question 250

multiple documents that describe the shipped merchandise, origin of shipment and applicable duties

Answer 250

Customs Entries

Question 251

statement that all freight charges have been paid

Answer 251

Freight release

Question 252

certification of ownership of the cargo provided to customs

Answer 252

Carrier's certificate and release order

Question 253

official government form used to declare the value of the shipment

Answer 253

special customs invoice

Question 254

a person or an organization authorized to act for another person or organization (the principal) in prescribed dealings with a third party. all purchasers are, most sales personnel are agents buy may have differing levels of actual authority

Answer 254

Agent

Question 255

term commonly used to describe pre-printed terms and conditions included on a purchase order or other form

Answer 255

Boilerplate

Question 256

a certificate of ownership or consignee of cargo provided to customers

Answer 256

Carrier's certificate and release order

Question 257

a document required by customs officials, identifying the country of origin of imported goods, and certified by US consular officials overseas

Answer 257

Certificate of Origin

Question 258

(1) an agreement with a supplier to stock goods at a customer's location with the goods remaining the property of the supplier until used or sold (2) a shipment that is handed over to a common carrier for transport and delivery

Answer 258

Consignment

Question 259

directives to an inland carrier for delivery

Answer 259

Delivery Instructions

Question 260

a receipt (which often serves as the basis for a bill of lading) that is given at the point of shipping and transfers accountability from the domestic carrier to the shipper

Answer 260

Dock Receipt

Question 261

statement that all freight charges have been paid

Answer 261

Freight Release

Question 262

an agreement between a company, or person, in which the insured makes payments to the insuring company, usually based on the terms of an ___ policy, covering a specified period of time. the insuring company promises to pay money or other compensation to the insured for a loss covered by the ___ policy. often used to reduce business risk, many types of ___ are available (life, automobile, construction, health, contingent liability, business interruption)

Answer 262

Insurance

Question 263

a document that provides an overview of goods being transported, often including a description of goods in detail and may include the shipment date as well as tracking information

Answer 263

Transmittal Letter

Question 264

a transportation document showing point of origin, destination, route, consignor, consignee, description of the shipment and the amount charged for transportation

Answer 264

Waybill

Question 265

US government agency established in 1970 to develop and enforce standards and methods to protect the environment

Answer 265

Environmental Protection Agency (EPA)

Question 266

provides the legislative framework for chemical disclosure within the EU member states and several other non-EU countries

Answer 266

European Protection, Evaluation, Authorization and Restriction of Chemicals Act (REACH)

Question 267

the US federal agency that used to regulate domestic surface transportation. the ___ came into existence in 1887 and ceased to exist in early 1996. many of the regulatory matters over which it still had review were transferred to the US department of transportation

Answer 267

Interstate Commerce Commission (ICC)

Question 268

a point at which rates to another destination are computed

Answer 268

Basing point

Question 269

local hauling between locations in the same town or city

Answer 269

Cartage

Question 270

costs assumed by the carrier for independent contractors with the understanding that these costs will be charged back later

Answer 270

Charge-back

Question 271

a publication containing a list of articles and the classes to which they are assigned for the purpose of apply rates

Answer 271

Classification

Question 272

the person named in a freight contract that the goods have been shipped or turned over to for care

Answer 272

Consignee

Question 273

the extra charges paid for detaining a freight car or ship beyond the permitted time for loading and unloading

Answer 273

Demurrage

Question 274

the amount added to or deducted from a through rate to establish a rate

Answer 274

Differential rate

Question 275

a charge made on the basis of miles traveled

Answer 275

Distance rate

Question 276

the material used to protect or support truck freight and its weight, listed separately on the bill of lading

Answer 276

Dunnage

Question 277

"freight all kinds", usually refers to full container loads of shipments containing mixed types of freight

Answer 277

FAK

Question 278

shipment that is miscarried or unloaded at the wrong location and then forwarded to the correct location at no charge

Answer 278

Free astray

Question 279

lower-than-usual tariff rates assessed because a rail shipper offers a greater volume than specified in the tariff

Answer 279

Incentive rates

Question 280

a rate for hauling a single shipment over two or more transportation lines (the lines involved cooperate to offer the service)

Answer 280

Joint Rate

Question 281

rates established for shippers transporting large quantities of goods that fill up several rail freight cars

Answer 281

Multiple car rates

Question 282

the formula that includes specific factors or elements that control the making of a rate

Answer 282

Rate basis

Question 283

rates established for direct routes from one point to another; rates by other routes between the same points are set in relation to the standard rate

Answer 283

Standard Rate

Question 284

should any cargo be thrown overboard or any expense incurred because of an emergency situation en route between ports, all losses will be split proportionally between the parties that hold a financial interest in the voyage

Answer 284

General Average

Question 285

systematic, centralized organizational effort to manage the surplus/obsolete equipment/material and scrap recovery/marketing/disposition activities in a manner that recovers as much or the original capital investment as possible

Answer 285

Investment Recovery

Question 286

a failure to perform any obligation included in the contract terms. failure of materials or product to meet quality or other specification warranted by the supplier

Answer 286

Breach

Question 287

the cost of moving goods into and out of a business; also known as freight. ___ inward (from suppliers) is typically a direct cost. ___ outward ( to customers) is usually classified as indirect costs

Answer 287

Carriage

Question 288

damage that was not observed when the goods were delivered usually due to exterior packaging and seals being intact

Answer 288

Concealed Damage

Question 289

compensation for loss or injury suffered by one party as a result of another party's actions of inactions. in breach of contract situations only compensatory, not punitive or exemplary, ___ are generally allowed

Answer 289

Damages

Question 290

(1) an error in understanding, interpretation or calculation made without intention or malice; (2) common law defense that excuses performance of a contract if both parties were ____n about a fundamental assumption underlying their agreement

Answer 290

Mistake

Question 291

a form of countertrade similar to counter purchase in which a supplier selling to a foreign organization agrees to purchase a certain quantity of materials from the country it suppliers. the primary difference is that the supplier can fulfill its obligation by purchasing from any business organization in the country it supplier. this term is primarily used in sale of military hardware

Answer 291

Offset

Question 292

standard often applied in legal proceedings, e.g., "___ time, ___ person", what is considered to be just a proper, ordinary or usual, under the circumstances presented. in contract disputes, what is ___ may be determine by past practices of the parties; practices in the particular industry and/or nature of the goods or services covered by the contract

Answer 292

Reasonable

Question 293

a process documenting all tiers of suppliers primarily to support risk mitigation and time-to-recovery concerns

Answer 293

Supply Chain Mapping

Question 294

a legally enforceable promise or representation as to quality or performance of goods or services made by the seller

Answer 294

Warranty

Question 295

an EU directive, the purpose of which is to place restrictions on the use of certain hazardous substances in electrical or electronic equipment sold or used in the EU after July 1 2006

Answer 295

Restriction of Hazardous Substances (RoHS)

Question 296

an EU directive, the purpose of which is to prevent the emergence of electrical and electronic equipment waste, and to promote the reuse, recycling and other forms of recovery of such waste

Answer 296

Waste Electrical and Electronic Equipment (WEEE)

Question 297

a critical review of an organizations freight bills to determine if the assessed charges were correct. checks the classification, rating or extension, either by a third party or inside auditor

Answer 297

Freight bill audit

Question 298

a freight rate pricing system that applies to a specific article or articles

Answer 298

Commodity Rate

Question 299

named port of shipment. an incoterm rule used only for maritime trade under which responsibility for the shipment transfers from exporter to importer then shipment is loaded aboard the vessel at the name port of shipment. sell must load the goods onto the ship. this has changed since incoterms 2000 rules, where the seller was responsible to only deliver goods past the ship rails. centuries of maritime tradition say ___ point is the Ship's Rail, also referred to as "Freight on Board".

Answer 299

Free on Board

Question 300

shipment weight specified by the carrier's tariff as the ___ required to qualify for discounts of truckload or carload

Answer 300

Minimum Weight

Question 301

(1) a homogeneous unit used in comparing freight earnings or expenses. the amount earned from the cost of hauling a tone of freight one mile or one half ton two miles; (2) the movement of a ton of freight one mile or any variation of this combination

Answer 301

Ton Miles

Question 302

a distribution technique used to minimize or eliminate warehousing by unloading incoming materials and loading the materials outbound trailers or railcars, without storing them in a warehouse. used to change the type of conveyance, to sort material intended for different designations, or to combine material from different origins while minimizing or eliminating warehousing

Answer 302

Cross-Docking

Question 303

an inventory storage system in which vehicles automatically load and unload material from the racks. they typically also allow for high-density storage

Answer 303

Automated Storage Retrieval System (AS/RS)

Question 304

storage facility utilizing one or more automation technologies, such as automated storage/retrieval systems, automated guided vehicle systems and/or RFID

Answer 304

Automated Warehouse

Question 305

a computer controlled materials handling system consisting of small vehicles (carts) that move along a guided way

Answer 305

Automated Guided Vehicle System (AGVS)

Question 306

a method of picking inventory in which order requirements are aggregated to reduce the number of trips to and from product locations. the aggregate quantities are taken to a common area where individual orders are put together

Answer 306

Batch Picking

Question 307

a company which purchases and resells standard products to a general customer base. it does not manufacture but may do limited modifications to products upon customer request. ___s usually maintain finished goods inventories and offer services to customers such as inventory management or consignment

Answer 307

Distributor

Question 308

a third party, often licensed by a governmental agency, that makes transportation arrangements and fills out forms under power of attorney

Answer 308

Freight Forwarder

Question 309

the point at which material is consumed. delivery to ___ means that arriving materials are taken directly to the ___ without being stored in a warehouse stockroom

Answer 309

Point of Use

Question 310

computer software designed specifically for managing the movement and storage of materials throughout the warehouse

Answer 310

Warehouse Management System (WMS)

Question 311

the process of housing or storing materialss and packages in larger quantities, generally using the original packaging, pallets, shipping containers or boxes

Answer 311

Bulk Storage

Question 312

action of one party to end a contract due to breach by the other party. the right to cancel may be provided by law or in specific contract language

Answer 312

Cancellation

Question 313

a term used when one shipper's goods completely occupy an entire container

Answer 313

Container Load

Question 314

what to do when stock isn't moving

Answer 314

returning the stock to the seller if allowed under the contract selling to the staff or external parties at a discount donating to charity disposal

Question 315

measurements considered critical to the performance of a business or process, usually calculated and reviewed on a regular basis

Answer 315

Key Performance Indicators (KPI)

Question 316

the amount of actual hours as compared to scheduled or available hours. the downtime that represents the different if often categorized by material shortage, equipment failure or other cause

Answer 316

Utilization

Question 317

additional services above and beyond minimum requirements that the customer considers to be of value

Answer 317

Value-Added Services

Question 318

formula for inventory turnover

Answer 318

inventory turnover= annual sales (at cost)/average aggregate inventory value

Question 319

the ratio of usable output to input, when measure in the same terms. all output not perfect or all do not function at highest desirable level

Answer 319

Yield Loss

Question 320

a statement of an organization's assets, liabilities, and shareholder equities

Answer 320

Balance Sheet

Question 321

reports generated when there is a difference, or discrepancy, between inventory records and actual physical inventory. these reports are used to identify where, when, and how the discrepancy occurred and to enable future correction and prevention

Answer 321

Discrepancy Reports

Question 322

a management approach that aims to minimize inventory-related risks while ensuring smooth operations. this means balancing the costs of ordering and carrying inventory against the costs of stock outs

Answer 322

Inventory Management System

Question 323

a statement of an organization's revenues and expenses during a given year

Answer 323

Income statement

Question 324

an itemization of the items included in a particular shipment, plus related details

Answer 324

Manifest

Question 325

periodic manual check of actual inventory as compared to inventory records. this process, while necessary to confirm the accuracy of inventory records, is very time consuming and disruptive because operations typically have to be shut down while stocks are being counted

Answer 325

Physical Counting

Question 326

the process of comparing records, identifying any differences between related records in which the content should match, and settling and resolving these variances

Answer 326

Reconciliation

Question 327

the systematic control of records or documentation from creation or receipt through processing, distribution, maintenance and retrieval to ultimate disposition

Answer 327

Records Management

Question 328

a code attached to a product which will be used to identify and track that product

Answer 328

Product Code

Question 329

the commercial activity of transporting and selling goods or services from a producer to a consumer

Answer 329

Retail Distribution

Question 330

oversight and management of physical assets such as inventories, buildings, land and infrastructure. some companies include intangible assets in this definition such as patents, copyrights and other intellectual property

Answer 330

Property Management

Question 331

an individual unit or product that is stocked at a specific storage facility

Answer 331

Stock Keeping Unit (SKU)

Question 332

picking material for production or sales order and moving to a separate area for purposes of consolidation or identifying shortages. staged material is normally handled as a location transfer and not as an issue to the destination production or sales order

Answer 332

Staging

Question 333

the short term resources owned by a company, including cash, inventory, and accounts receivable. have a life of one year or less, or the normal operating cycle of the organization

Answer 333

Current Assets

Question 334

an asset that lasts more than a year, with an impact on shareholder value, and considered by management to be worth controlling usually property, plant, and equipment depreciated over a certain monetary value

Answer 334

Fixed Assets

Question 335

assets such as a brand name, goodwill or reputation that have value but cannot be physically seen or touched usually have a life of excess of one year

Answer 335

Intangible Assets

Question 336

incurring of an expenditure that has a future benefit in excess of one year that is capitalized to an asset account

Answer 336

Deferred Cost

Question 337

allows organization to deduct a portion of the total cost of the asset over its useful life qualifying assets must be tangible, purchased for business use, and on the IRS eligibility list each year that the deduction for depreciation is taken reduces the asset's adjusted cost basis

Answer 337

IRS section 179 deduction for depreciation

Question 338

the process of maintaining an accurate accounting of assets, whether owned, leased or loaned, under an organization's control and listed on the organization's balance sheet

Answer 338

Asset Management

Question 339

redeploying, reusing, recycling or regeneration of something of value (property, equipment, goods and so on) that is no longer necessary for the original intent; the return of environment conditions to the state they were prior to an action

Answer 339

Asset Recovery

Question 340

inventory control system that involves the use of machine-readable codes on packages and products for easy identification and computerized recordkeeping. in addition to materials inventories, ___ can also be used to keeping records of tools, furniture and equipment

Answer 340

Bar Coding

Question 341

equipment used by an organization for its production potential that costs more than a predetermined threshold value and whose costs will be depreciated over time

Answer 341

Capital Equipment

Question 342

the process of removing something from a location, typically the removal of scrap, surplus, excess, obsolete and waste items from an organization's premises

Answer 342

Disposal

Question 343

the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements

Answer 343

Logistics

Question 344

process that converts an image of text into a machine-readable text format

Answer 344

Optical Character Recognition (OCR)

Question 345

land and rights to land, ground improvements, utility distribution systems, buildings and other structures

Answer 345

Real Property

Question 346

means of information storage. Their purposes are to provide: (1) actionable information to enable better decisions; (2) a knowledge base for sharing and transferring information; and (3) complete documentation for legal and audit purposes. purchasing is responsible for maintaining ___ for bills of sales, titles, warranties and other purchase-related documents

Answer 346

Records

Question 347

the practice of returning useable materials cast off from a process into a production stream for another use. this is particularly true in primary manufacturing, where clean process scrap can become part of a new cast of material. segregated, clean material can have considerable value

Answer 347

Recycling

Question 348

the value of an asset remaining at the end of a lease period

Answer 348

Residual Value

Question 349

an independent, private-sector body that develops and approves international financial reporting standards

Answer 349

International Accounting Standards Board (IASB)

Question 350

US federal law adopted in 2002 in an attempt to restore public confidence in corporate governance; regulates the accounting profession and imposes extensive reporting requirements on all publicly-traded corporations in the US. the law requires internal financial controls to provide assurance of the reliability of financial reporting and preparation of financial statements

Answer 350

Sarbanes-Oxley Act(SOX)

Question 351

what is the calculation for safety stock?

Answer 351

(maximum daily usage * maximum lead time in days) - (average daily usage * average lead time in days)

Question 352

a "pull" system of production and inventory management where product is manufactured in response to an actual order from a customer thereby reducing inventory

Answer 352

Build-to-order (BTO)

Question 353

a "push" system of production and inventory management where product is manufactured or acquired in response to sales forecasts and kept in inventory until an order is received

Answer 353

Build-to-stock (BTS)

Question 354

the cost of keeping inventory on hand, including: the opportunity costs of invest funds (finance costs); storage and handling costs (overhead costs); and taxes, insurance (ownership costs), shrinkage, damages, and obsolescence (risk costs). organization's usually state an item's holding cost per time period as a percentage of the item's value

Answer 354

Carrying Cost

Question 355

process that uses customer demand (not forecasting) to produce goods

Answer 355

Demand Flow

Question 356

linkage between buyers and sellers that enables efficient sharing of demand data for the purpose of reducing costs in the chain

Answer 356

Demand Flow Technology (DFT)

Question 357

the unproductive time when manufacturing processes are stopped and workers are idle, usually as the result of equipment failure, setup, maintenance work or material shortages. also applicable to services when service delivery is interrupted as a result of failure of equipment or people in the service delivery process

Answer 357

Downtime

Question 358

a material replenishment system in which the size of the orders remain fixed, while the time interval between them changes, depending on how quickly the items are consumed

Answer 358

Fixed-Order Quantity (FOQ)

Question 359

the costs incurred in changing tooling or in changing the production line to produce a different item

Answer 359

Setup Costs

Question 360

a legally binding document prepared by a purchaser to describe the terms and conditions of a purchase. in the contracting process the ___ may function as an offer, an acceptance, a confirmation of an oral agreement or a trigger for periodic perforance (release) under an established contract

Answer 360

Purchase Order (PO)

Question 361

a PC-based setup that integrates personal processing application with a network of PC's or with a mainframe computer. a ___ allows a user access to a very large mainframe databases otherwise inaccessible

Answer 361

Workstation

Question 362

developed testing standards to assess the various transport packaging materials available today certification programs for packaged products and packaging professionals

Answer 362

International Safe Transit Association (ISTA)

Question 363

offers global food safety (GFSI) certification for the food packaging industry

Answer 363

NSF International

Question 364

contract management processes exist and are accepted and practiced. management understands the benefits of a contract management process. it includes some informal contract management process documentation. managers and personnel are not held accountable for not following standards

Answer 364

Ad hoc

Question 365

some basic contract management processes and standards are in place but only required on complex, critical, and highly visible contracts. consistent policies and standards do not exists on other contracts. processes and standards exist but have not been institutionalized throughout the organization

Answer 365

Basic

Question 366

contract management processes have been fully developed, institutionalized and mandated throughout the organization. formal documentation has been developed, and some processes may be automated. the processes and documentation can be tailored for the unique aspects of each contract. senior management provides guidance, direction, approval of contracting strategy, decision-making, documents, and terms and conditions

Answer 366

Structured

Question 367

contract management processes have been fully integrated with the organization's core processes and the end user or customer. performance metrics are used periodically to measure the contract management process and make related decisions

Answer 367

Integrated

Question 368

contract management processes are fully integrated with the organization's core processes and end user or customer. performance metrics are used systematically to improv process quality. contract management personnel apply lessons learned and develop best practices. continuous improvement efforts are used to improve and streamline contract management processes

Answer 368

Optimized

Question 369

bringing together individuals for a facilitated exchange of ideas about a specific topic for the purpose of getting input and gaining perspective that may influence decision-making. technique used in qualitative research

Answer 369

Focus Group

Question 370

creation of high-value products with a large variety of options. customers specify their exact versions from many possible configurations. manufacturing costs are low due to large volumes. examples include technology devices such as personal computers which are assembled on one line a low costs yet customers specify processor speed, storage device and many other options

Answer 370

Mass Customization

Question 371

intermediary, for a fee, brings a buyer and seller together

Answer 371

Broker

Question 372

like a broker but will take possession of the goods and sell them dealers fee for services is usually a commission calculated on the total value of the sale

Answer 372

Dealer

Question 373

what organization restricts the use of 6 hazardous materials and what are they?

Answer 373

``` RoHS--> restriction of hazardous substance directive lead mercury cadmium chronium VI PBB--> flame retardant PBDE--> flame retardant ```

Question 374

a unit of weight equivalent to 1,000 kilograms or 2,204 pounds

Answer 374

Metric Ton

Question 375

legal theory under which a definitive promise made by one party and justifiably relied on by another will be enforced, even though the requirements of contracting may not be met

Answer 375

Promissory Estoppel

Question 376

capital budgeting technique used to equate the discounted cash flows against the initial investment for the project

Answer 376

Net Present Value (NPV)

Question 377

capital budgeting technique that calculates the discount rate that equate the discounted cash flows of the project with the initial investment

Answer 377

Internal Rate of Return (IRR)

Question 378

the period of time needed for a project to recover its initial investment, based on the cash inflows

Answer 378

Payback

Question 379

team follows along with managers argument even though they might disagree because they are the manager

Answer 379

abilene paradox

Question 380

tools used to assign project team members their specific roles and responsibilities with respect to the project effort. typically assigns project team members to a specific section of the project work breakdown structure

Answer 380

Responsibility Assignment Matrix (RAM)

Question 381

horizontal bar chart that is used to plot the planned and actual progress of project tasks

Answer 381

Gnatt chart

Question 382

mathematical-based algorithm for scheduling a set of project activities that shows the longest path of planned activities to the end of the project, and the earliest and latest that each activity can start and finish without making the project longer includes a list of project activities known as the work breakdown structure, the expected time that each activity will take to complete and the dependencies among the activities

Answer 382

Critical Path Method (CPM)

Question 383

network planning technique used for controlling the activities in a project. each activity is assigned a pessimist, probable, and optimistic estimate of duration the critical path and project duration are calculated and progress is monitored using this data greater reliability of the time estimates

Answer 383

Program Evaluation and Review Technology (PERT)

Question 384

what are the 9 essential elements of a project plan?

Answer 384

``` objectives technical and managerial approaches contractual agreement project schedule project budget or resource requirements risk management risk assessment evaluation methods ```

Question 385

if a project becomes larger as a result of change or there are changes occurring outside the control of the project team

Answer 385

Scope Creep

Question 386

a structured proposal for business improvement that functions as a decision package for organizational decision-makers

Answer 386

Business Case

Question 387

making changes in a planned or systematic fashion through the use of methods, models and practices common to the multi-disciplinary body of knowledge surrounding the task of managing planned or unplanned change

Answer 387

Change Management

Question 388

the management of various facets of a contract to ensure that the contractor's total performance is in accordance with the contractual commitments and that obligations to the purchaser are fulfilled

Answer 388

Contract Administration

Question 389

the consecutive sequence of activities in a project whose cumulative time requirements determine the minimum total project time; the longest time path through a series of tasks; i.e., when the last task on the ___ is completed, the project is complete

Answer 389

Critical Path

Question 390

a management system and related sub-systems implemented to establish a relationship between cost, schedule, and technical aspects of a project, measure progress, accumulate actual costs, analyze deviations from plans, forecast completion of events and incorporate changes in a timely manner

Answer 390

Earned Value Management System (EVMS)

Question 391

the monetary value of an entity at the end of a time period minus the monetary value of that same entity at the beginning of that time period. for an enterprise, after-tax earnings minus the opportunity cost of capital. as with any other entity, ___ essentially measure how much more valuable an organization has become during a given time period

Answer 391

Economic Value Added (EVA)

Question 392

a set of processes or rules designed to optimize desired results and limit (optimally eliminate) undesired results, typically embedded within management practices

Answer 392

Governance

Question 393

systematic procedures developed by to apply critical thinking to information, data, and experience for the purpose of solving problems, making decisions, anticipating future problems and appraising situations

Answer 393

Kepner-Tregoe Rational Process Analysis

Question 394

the process of coordinating the organization, planning, scheduling, controlling, monitoring and evaluating activities so that the objectives of a project are met

Answer 394

Project Management

Question 395

project management term to describe document that shows the entire hierarchy of project operations required to accomplish project objectives

Answer 395

Work Breakdown Structure (WBS)