Int. to Supply Chain TEST 2

MC: Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? A. Blockchain B. eFulfillment C. Artificial Intelligence D. The Internet of Things

Artificial Intelligence

MC: A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what? A. Bond B. Tariff C. Countertrade D. Bid

Bid

MC: Which of the following is NOT one of the keys to successful strategic partnerships? A. Developing personal relationships B. Gaining commitment from top management C. Building independent objectives D. Understanding and influencing capabilities

Building independent objectives

MC: What is the term that is often used for the acquisition of services?

Contracting

MC: The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT? A. Collaboration B. Visibility C. Integration D. Detachment

Detachment

MC: The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? A. Preferred Suppliers B. Developmental suppliers that need to make improvements C. Suppliers that provide lesser quantities of a crucial products/services D. Suppliers that provide high volumes of products or services

Developmental suppliers that need to make improvements

MC: Which one of the following is NOT one of the advantages of e-Procurement? A. Mobility B. Inaccuracy C. Real Time D. Trackability

Inaccuracy

MC: Which of the following is NOT one of the primary goals of Purchasing?

Increase the supplier base

MC: The process commonly utilized in continuous improvement is known as? A. Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.) B. Plan, Source, Make, Deliver C. Ready, Aim, Fire D. Plan, Do, Check, Act

Plan, Do, Check, Act

MC: What is the term for an internal document that defines the need for goods and/or services? A. Procurement B. Purchase Order C. e-Procurement D. Purchase Requisition

Purchase Requisition

MC: Performance Measures should be S.M.A.R.T. which is an acronym that means? A. Substantial, Meaningful, Accurate, Rational, Time-sensitive B. Specific, Measurable, Achievable, Relevant, Time-oriented C. Significant, Memorable, Appropriate, Reasonable, Time-tested D. Suitable, Marketable, Applicable, Remarkable, Time-based

Specific, Measurable, Achievable, Relevant, Time-oriented

MC: Managing a company's external resources in ways that support the long-term goals of the company can be referred to as? A. Ethical sourcing B. Functional sourcing C. Strategic sourcing D. Hybrid sourcing

Strategic sourcing

TRUE/FALSE: Through collaborative negotiations both sides work together to maximize the outcome or create a win-win result.

TRUE

TRUE/FALSE: Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price.

TRUE

MC: The sum of all costs associated with every activity in the supply chain of a product, is referred to as?

Total Cost of Ownership

MC: Which of the following terms refers to an act that creates the greatest good for the greatest number of people? A. Utilitarianism B. Rights and duties C. Corporate responsibility D. Social sustainability

Utilitarianism

MC: Which of the following statements is TRUE? A. VMI stands for Vertically Managed Inventory B. 3PL stands for Third Party Leverage C. VMI stands for Vendor-Managed Inventory D. 3PL stands for Three-Point Logistics

VMI stands for Vendor-Managed Inventory

MC: A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as? A. Early Supplier Involvement B. Value Engineering C. Supplier Development D. Supplier Recognition

Value Engineering

TRUE/FALSE: ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service.

FALSE

TRUE/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

TRUE/FALSE: The concept of Distributive Negotiations refers to both sides working together to create a "win-win" result or positive outcome for both parties.

FALSE

TRUE/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

TRUE/FALSE: While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.

FALSE

TRUE/FALSE: The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit

FALSE

MC: Benefits of implementing an effective supplier certification program include all of the following EXCEPT? A. Building long-term relationships B. Reducing time spent on incoming inspections C. Increasing the supplier base D. Recognizing excellence

Increasing the supplier base

MC: The keys to developing successful supply partnerships include all of the following EXCEPT? A. Personal Relationships B. Individualized Objectives C. Mutual Benefits and Needs D. Performance Metrics

Individualized Objectives

MC: Which of the following are described as Agents licensed by governmental regulatory authority to conduct business on behalf of importers, for a service fee? A. Import Merchants B. Import Brokers C. Trading Companies

Import Brokers

MC: Which of the following is NOT one of the drivers of Strategic Sourcing? A. Focusing on the customer B. Reducing the delivery lead times C. Optimizing the number of global suppliers D. Increasing the selling price of the product

Increasing the selling price of the product

TRUE/FALSE: ISO 14000 is a widely accepted quality certification standard

FALSE

TRUE/FALSE: Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.

TRUE

MC: Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? A. Single-source B. Multi-source C. Sole-source

Multi-source

MC: All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one? A. Due to the lack of expertise in your own company operations B. Because you want to adopt multi-sourcing strategy C. Because you want to use existing idle capacity in your own company operations D. Because the item is non-strategic

Because you want to use existing idle capacity in your own company operations

MC: The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category? A. Non-Critical Items B. Bottleneck Items C. Leverage Items D. Strategic Items

Bottleneck Items

MC: Benefits derived from implementing an e-procurement system include all of the following EXCEPT:

Decentralizing Purchasing

MC: An outsourcing program can result in all of the following positive outcomes, except? A. Reducing staffing levels B. Decreased need for supplier management C. Cost reduction D. Gains in manufacturing flexibility

Decreased need for supplier management

MC: All of the following are reasons for Making an item in your own company operation, EXCEPT for which one? A. There is no competent supplier available B. Due to insufficient capacity in your company operations C. To protect proprietary technology D. To control transportation and warehousing costs

Due to insufficient capacity in your company operations

MC: The concept which attempts bring about positive social change through organizational buying behavior, is known as? A. Business Ethics B. Sustainability C. Ethical Sourcing D. Supplier Code of Conduct

Ethical Sourcing

TRUE/FALSE: A robust and long-lasting supplier partnership requires that both buyer and supplier adopt a strong tactical perspective

FALSE

TRUE/FALSE: Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs

FALSE

MC: An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A. Quality Systems Certification B. Supplier Management C. Supplier Certification D. Supplier Inspection

Supplier Certification

TRUE/FALSE: One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance.

TRUE

TRUE/FALSE: Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels

TRUE

MC: Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT? A. A supplier who has a fully documented process and a quality system with cost controls and continuous improvement capabilities. B. A supplier whose processes are determined to be stable and in control. C. A supplier who has a minimal number of significant negative quality related incidents for a specified time period. D. A supplier who has no incoming product rejections for a specified time period.

A supplier who has a minimal number of significant negative quality related incidents for a specified time period.

MC: Which one of the following is NOT one of the 12 steps in the basic Purchasing Process? A. Obtain authorization as necessary B. Fulfillment C. Expediting D. Analysis

Expediting

TRUE/FALSE: A purchase order is legally binding once issued by the buyer

FALSE

TRUE/FALSE: Strategic Sourcing is the process of identifying a company that provides a needed good or service.

FALSE

MC: Which general sourcing category comprises items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings? A. Non-Critical B. Bottleneck C. Leverage D. Strategic

Leverage

TRUE/FALSE: "Rationalizing the supplier base" typically means that the company is trying to reduce the number of suppliers in its supplier network.

TRUE

TRUE/FALSE: A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

TRUE

TRUE/FALSE: An effective supplier recognition program may provide motivation, improve loyalty, encourage suppliers to adapt to the company's culture, create entry barriers for competitors, and encourage suppliers to participate in product innovation.

TRUE

TRUE/FALSE: Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs

TRUE

TRUE/FALSE: Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

TRUE

TRUE/FALSE: The Weight-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier.

TRUE

MC: Which of the following would be a good reason to outsource (buy) versus make an item?

The company lacks the technology or expertise to produce an item

MC: Which sourcing concept involves a supplier directly managing the buyer's inventory carrying costs and avoid stockouts? A. Reverse Auction B. Vendor Managed Inventory C. Co-Managed Inventory D. Supplier Co-Location

Vendor Managed Inventory