MGT 327 Chapter 6

small

Maintenance, repair, and operating supplies deal with many ____________ value purchases

resellers

The distribution channel between buyers and sellers is represented by

the price they pay for goods they resell.

The most significant cost for resellers is

environmental concerns. disposal needs. transportation requirements

When supply chain managers consider logistic needs, the packaging can affect

individual standards

Which form of specification data requires extensive consultation and can be expensive?

intangible

services are ______________ and non manufactured

assets

Capital expenditures are shown as ___________ on the balance sheet

order as requested. verify the description and provide alternatives. alter the description as needed and provide alternatives.

Descriptions for supplies can be given using a variety of forms, supply personnels responsibility is to

70

During the need identification and specification phases, there is a ________% opportunity for value improvement.

good

Early supply and supplier involvement can ensure that products or services specified are procurable and represent ___________ value.

he cost to manufacture specialty items. the cost to prepare drawings.

Engineering drawings used for procurement have limitations of

product or life cycle & design stability

For repetitive purchases contract length is influenced by

Operational risk

Interruption of goods or services.

high

Needs that are strategic should be given a __________ degree of attention from the supply manager.

7

Organizational need can be divided into _____ broad categories

Long-term contracts, lease obligations, and hedge positions must be reported appropriately.

Organizations must properly report all __________, __________, and _________ to withstand investigations and avoid penalties.

support, opposing

Organizations should operate in such a manner they_________ government regulations instead of__________

supplier

Performance specification allows the ________ to take advantage of the latest technology to provide the most suitable product.

natural, modified, or semi-processed state.

Raw materials are basic substances in a

Financial risk

Significant change in price of goods or services.

buying

Specification by material and method of manufacturing places the risk and responsibility on the _____________ organization

private agencies, buying organization, government standards

Specification data can be obtained from

being widely known. being readily available. being commonly recognized.

Standard specifications offer advantages of

raw, components, capital assets

Supply chain for most organizations can be classified into seven categories of resale, MRO, services, other ___________,______________, and

Sustainability, political factors, risk management

Supply chain management requires the evaluation of need under more than just strategic or traditional criteria, these newly added categories include which of the following -sustainability -risk management -political factors -human resources

identify needs, select supplier, develop contract, monitor performance

Supply professionals can monitor performance with MRO acquisitions and

80

The GDP for the US estimates that services constitute _____ percent.

quality, quantity, delivery, price, service

The organization needs to be categorized under the traditional value proposition are evaluated under the criteria of

30 - 50

The purchase price of a capital purchase is between _______ percent of total cost of ownership.

operational, financial, reputational

The three supply chain risk management categories are which of the following -operational -financial -reputational -social obligations

operating and downtime costs. yield. maintenance and repair costs.

The total cost of ownership with capital assets includes

False - Supply management has become more difficult with additional criteria.

True or false: Additional criteria that have been added for supply chain managers to evaluate corporate need from has made supply management easier.

True

True or false: Nonrepetitive purchases must be handled on a case by case basis, this can be from small value purchasing to capital investment.

False

True or false: Requirements evaluated under the service criteria are easier to quantify than the remaining traditional criteria.

True

True or false: Unusual or infrequent purchases must be dealt with on a case by case basis.

bidder

Using or equal descriptions transfers responsibility for establishing equality to the

the best buy circumstances.

When acquiring goods or services, the purchaser must determine

Specifications cannot be laid down with sufficient accuracy. The manufacturing process is secret or the item is covered by a patent. The quantity bought is so small.

When is description by brand desirable?

description of market grade

Which method of description is confined to certain primary materials?

cash conversion cycle

________________ refers to the time between purchasing the raw materials used to make a product and collecting the money from selling the product.

Government

___________________ standards set the regulations that organizations must meet when concerning employee health and safety,

value

supply chain management is concerned with the _________ for specific needs from suppliers

10 to 20

ABC analysis is an inventory categorization method which consists of dividing items into three categories, A, B, and C: A being the most valuable items, C being the least valuable ones. A items make up about ________ to _______ percent for an organization.

the part is not readily available.

ABC manufacturing has decided to use a custom component to decrease the ability of competitors to copy their design, the disadvantage of this is

transparency

Greater _________ is required for supply transactions to prevent financial scandals and avoid fines or citations.

Brand specific requirements can deprive the buyer of using other suppliers.

How is using description by brand restrictive?

Reputational risk

Adverse supplier behavior that affects the purchaser.

description

A _______ means the different methods by which the buyer communicates to the seller a clear, detailed picture of the required item.

market

Commodity managers must be aware of __________ conditions to ensure they meet supply and demand, price movements, and proper acquisition timing.

lower costs. improved quality.

Corporations who use standardization and simplifications can see achievements in

text

Engineering drawings are commonly submitted with a form of descriptive

Strategic, traditional, and additional current

Every organization has specific needs, the value of these needs are categorized into three levels, they are:

use experience and judgment to make sound decisions.

Every supply decision will be different, and supply professionals must

inspection

The value of materials purchased by market grade is subject to ________________ to ascertain the degree of compliance.