Exam 2 Chapter Ending Quizzes 5-8
The fastest or most immediate way that a purchasing person can directly impact the profit of their company is to:
Obtain a price reduction on the items they are buying
Which cost of quality category includes performing audits to confirm that the quality system is operating properly?
Appraisal Costs
Which of the following is the best description of a Preferred Supplier?
A supplier who best meets all of your company's overall purchasing requirements
Benefits derived from implementing an e-procurement system include all of the following EXCEPT?
Decentralizing Purchasing
The term used to describe a debt secured by a bidder for the purpose of providing a guarantee that the successful bidder will accept the contract once awarded, is known as?
Bid Bond
The manufacturing strategy in which the product is designed, engineered, and built to specifications only after the order has been received is called what? It is used when products are unique and extensively customized for the specific needs of individual customers. Make-to-Order (MTO) Make-to-Stock (MTS) Assemble-to-Order (ATO) Engineer-to-Order (ETO)
Engineer-to-Order (ETO)
Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs
False
Industrial buyers purchase raw materials and other components for conversion into a finished product, but they do not purchase services or capital equipment.
False
Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes
False
Lean is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories True False
False
Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace
False
The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks.
False
Which one of the following is NOT one of the Seven Tools of Quality Control? Check Sheets Hysterical Charts Cause & Effect Diagrams Flow Diagrams
Hysterical Charts
Benefits of implementing an effective supplier certification program include all of the following EXCEPT?
Increasing the supplier base
The keys to developing successful supply partnerships include all of the following EXCEPT?
Individualized Objectives
Lean Manufacturing emphasizes all of the following EXCEPT?
Large Batch Sizes
Which one of the following is NOT an element of Lean Manufacturing?
Mass Customization
What company originated the concept of Six Sigma? General Electric Motorola Toyota Ford
Motorola
Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?
Multi-source
In public purchasing in the government & non-profit business sector, bidders (i.e., potential suppliers) are generally required to furnish bonds as an incentive to ensure that the successful bidder will fulfill the contract awarded. Which type of bond provides protection against 3rd party liens (i.e., debts) not fulfilled by the bidder?
Payment Bonds
Which of the following is an internal document that defines the need to purchase goods and/or services? This document does not constitute a contractual relationship with any external party.
Purchase Requisition
In which sourcing category would an item typically be classified, if it is considered to be high value, high risk, and there are few suppliers, but they are excellent?
Strategic
"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.
True
Ethical sourcing policies should include such things as the reporting of supplier compliance to stakeholders, and detailing ethical sourcing expectations to suppliers.
True
Products with low profit margin, relatively stable demand, and high levels of competition, are known as Functional Products. Correct answer:
True
Root Cause Analysis is a term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems
True
The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly increase profits.
True
The goal of a good supplier performance evaluation system is to provide metrics that are:
Understandable, easy to measure, and focused on real value-added results
Which one of the following is NOT one of the 12 steps in the basic Purchasing Process?
Expediting
The process of taking a statistically significant representative sample to be measured against the quality acceptance standard, is known as? Kaizen Six Sigma Lean Manufacturing Acceptance Sampling
Acceptance Sampling
A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective.
False
The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profits
False
Which of the following is NOT one of the drivers of Strategic Sourcing?
Increasing the selling price of the product
The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?
Detachment
In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate?
Leverage Items
Performance Measures should be S.M.A.R.T. which is an acronym that means?
Specific, Measurable, Achievable, Relevant, Time-oriented
Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts?
Vendor Managed Inventory
The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?
Developmental suppliers that need to make improvements
ISO 14000 is a widely accepted management and quality certification standard.
False
Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.
True
