Marketing 333 Test 1
Outsourcing is:
a high risk venture because the costs of reversing the decision are often high.
Online auctions typically:
may result in significant upfront preparation and cost.
The objectives of supply management focus on:
operational and strategic issues.
Supply decisions effect:
the income statement and balance sheet.
Company image may be directly influenced by:
treating suppliers in a fair and equitable manner, complying with regulatory requirements, and labor, environmental, and ethical practices of suppliers
Performance of the supply management function can be viewed in two contexts:
trouble avoidance and opportunistic.
The need recognition and description phases of the supply process:
are when most of the cost and quality are determined.
Interest in the performance of the supply function began:
before 1900 when railroads recognized it as an important function.
High-performing cross-functional supply teams:
concentrate most of the work at the front-end of the process.
Subcontracts can only occur:
if there is a prime contractor bidding out part of a job.
Make or buy and insourcing or outsourcing decisions are:
key strategic decisions.
The bill of material (BOM) includes the total quantity of materials/parts to:
make one end unit.
When special requirements exist and the buying organization is willing to assume responsibility for results, such as procurement for the armed forces, this prescriptive method is called a(n):
material and method of manufacture specification.
A zero-defects quality strategy emphasizes:
"do it right the first time."
For an organization with revenue of $100,000,000, purchases of $60,000,000, and profit of $8,000,000 before tax, a 10 percent reduction in purchase spend would result in an increase in profit of:
75 percent, giving a profit leverage effect of 7.5
The decision to make or buy a good or service is:
a decision of strategic importance that deserves careful evaluation.
A centralized supply structure is designed to:
capitalize on reporting line power.
Supply strategies that are designed to anticipate and recognize shifts in the economy, organization, people, laws, regulations, and systems availability are:
environmental change strategies
Early supply and supplier involvement:
helps ensure that what is specified is procurable and represents best value.
Small dollar value purchase orders can be efficiently and effectively managed by:
implementing an e-procurement application.
Corporate purchasing cards are issued to:
internal customers to purchase low-dollar, high-volume goods and services.
Activities within supply management that tend to be outsourced include:
inventory monitoring, order placement and order receiving.
Simplification:
is an attempt to concentrate production on the most important product sizes.
On average, the dollars spent with suppliers as a percent of revenues is:
is greater in manufacturing than in service organizations.
When buying with a performance or function specification:
it may be difficult to compare quotations and the supplier may include a risk allowance in the price.
The inability to store services:
means timing is critical to successful service acquisition.
About 70 percent of the opportunity for value improvement lies in:
need identification and specification.
Indirect spend is:
often managed differently than direct spend.
A change from a decentralized supply structure to a centralized one:
often requires information technology not already in use.
The current business-to-business e-marketplace business model focuses on:
providing supply chain services.
The three options for soliciting business from potential suppliers are:
request for quotation (RFQ), request for proposal (RFP) and request or invitation for bid (RFB or IFB)
If the buyer has a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:
request for quotation (RFQ).
Core competencies of an organization are typically:
seldom outsourced because they contribute to competitive advantage.
A request for quotation that asks for a "brand or equal":
shifts responsibility for establishing equality or superiority to the bidder.
The answer to the question, "How much to buy?" depends on:
the level of uncertainty throughout the supply chain.
Privatization is:
the term for outsourcing used in the public sector.
Three major challenges facing the supply executive when setting supply objectives and strategies are:
(1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and (3) How can supply issues be identified and integrated into organizational objectives and strategies?
When developing supply strategies, the supply manager must determine:
all of the above.
Repetitive requirements should be purchased by:
an acquisition process or system.
A strategy is:
an action plan to achieve specific long-term goals and objectives.
The payment process:
and the supply process should be aligned in policy and practice.
In terms of corporate social responsibility, the role of supply managers is:
broadly defined as actions at home and offshore.
When a team decides that a task or function currently performed by company employees is a core competency, the team will probably recommend:
continuing to make.
The role of supply management is best captured by the following question:
how can supply and suppliers help decrease costs and increase revenues?
When a supply-related risk exists, the supply management team should:
identify and classify risks, assess possible impact, and develop a mitigation strategy.
Information systems technology can:
increase data accuracy and accessibility at lower cost.
Outsourcing of services is:
increasing in volume and scope.
When a specification is formulated by the buying organization, often on the basis of standards set by governmental or technical societies, it is called a(n):
individual specification.
In an outsourcing decision, developing and negotiating the outsourcing contract:
is an important role for supply, but involvement in identifying opportunities for insourcing or outsourcing has more strategic impact.
The impact of supply management actions on the inventory asset base and the balance sheet is measured by the:
return on assets (ROA) effect.
A requirement typically is considered strategic if:
revenue enhancement, risk reduction, and access to new technology
Which of the following is one of the five major supply strategy areas:
risk-management strategies.
To contribute to organizational strategy, the supply department should:
seek opportunities to provide competitive advantage.
The question: "How can supply and the supply chain contribute effectively to organizational objectives and strategy?" is a key question in:
strategic supply management.
In manufacturing companies:
supply and operations coordination is essential to operational excellence.
The ratio of purchased material and services compared to total costs or income, has a major influence on:
supply's reporting level in the organization
Normally, most organizational objectives can be summarized as:
survival, growth, financial, and environmental.
Supply chain management refers to a systems approach to managing:
the flow of information, materials, and services from suppliers, their suppliers, and their suppliers' suppliers through the buying organization to their customers, and their customers' customers.
The objectives of supply are to obtain:
the right quality and quantity at the right price and cost delivered to the right place at the right time from the right source.
The size and activities of the supply function in a single business unit organization will depend on:
the size of the company and the nature of the company's business.
Internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, operations and engineering are
desirable because of the interdependencies between and among functions.