MGT 375 Chapter 2

Supply managers must decide _________ versus __________ when making purchases

now, later

Whereas physical loss can be covered by insurance, indirect damages such as ___________ can be severe and take a long time to recover

reputation

Whereas physical loss can be covered by insurance, indirect damages such as _____________ can be severe and take a long time to recover.

reputation

When making strategic supply decisions, organizations must also decide if they will acquire __________________ or custom components.

standard

After a contract is signed, the direction for the flow of materials and services is overseen by A) materials management personnel B) sourcing personnel C) supply research personnel D) administrative personnel

A

An effective quality assurance program helps prevent defective end-products and can help increase growth in A) market share B) materials planning C) maintenance programs D) group buying

A

Control charts that monitor production for signs of problems and make needed adjustment are managed under A) process quality control program B) zero defects C) negotiations program D) quality certification program

A

Manufacturing engineering department would like to use an alternate material in production; they should send the request for a study through which supply function? A) supply research B) sourcing and commodity C) administration D) materials management

A

Supply chain risk planning focuses on A) long-term opportunities B) instant pricing changes C) immediate problems D) short-term goals

A

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both A) internal and external B) major and minor C) internal and strategic D) individual and group

A

Key strategy questions that supply managers use to guide "when" they purchase are? (multiple answers) A) Should forward buying be implemented? B) How much inventory is needed or wanted on hand? C) Do we buy domestically or internationally? D) Who in top management will make purchasing decisions?

A, B

Standardized materials for products can lead to (multiple answers) A) lower inventory B) lower prices C) lower tracking costs D) lower service levels

A, B, C

Supply chain management risks can be classified into categories of (multiple answers) A) reputation B) financial C) operational D) consumer

A, B, C

What are the significant challenges supply managers face when setting objectives and strategies? (multiple answers) A) Identifying concerns from supply goals and giving feedback into the organizational objectives. B) Translating corporate objectives into supply objectives. C) Choosing the appropriate plan to achieve goals. D) Keeping the supply objective separated from the organizational objectives.

A, B, C

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers) A) increased duties and tariffs B) currency rate changes C) price change in raw materials D) wild fire that damages supplier warehouse

A, B, C

Some quality assurance programs that can be used to deliver high-quality end-products are? (multiple answers) A) process quality control B) quality certification C) supplier search D) zero defects

A, B, D

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers) A) currency rate changes B) price change in raw materials C) wild fire that damages supplier warehouse D) increased duties and tariffs

A, B, D

Controlling spending within the supply chain can afford an organization the ability to (multiple answers) A) acquire a supplier through integration B) choose who makes purchasing decisions in the corporate offices C) pursue specialized requirements D) whether or not to purchase goods locally or internationally

A, C

A supply manager must use which of the following to manage and evaluate supply decisions? (multiple answers) A) risk identification and classification B) government duties and tariff requirements C) risk strategy D) impact assessment

A, C, D

Materials management personnel can have responsibilities in areas such as (multiple answers) A) inventory control B) e-procurement systems C) scheduling and planning D) receiving inspection

A, C, D

The three levels of strategic planning are: (multiple answers) A) corporate B) development C) business unit D) function

A, C, D

Where to buy decisions involve making strategic choices concerning (multiple answers) A) single versus multiple suppliers B) technology used in production C) supplier certification D) small versus large suppliers

A, C, D

An organization must ask the fundamental questions of: (multiple answers) A) make or buy B) local or international C) quality or quantity D) insourcing or outsourcing

A, D

Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions. A) marketing B) operations C) engineering D) supply

A, D

Higher quality received from suppliers helps to reduce (multiple answers) A) in-house quality administrative costs B) price of raw materials C) shipping costs D) production costs

A, D

Supplier participation teams face obstacles with (multiple answers) A) intellectual property concerns B) supplier capabilities C) short cycle times D) confidentiality

A, D

Supply chain operational risks can be separated into which two factors? (multiple answers) A) events that are directly within the supplier's capability B) events that involve changes in the prices of commodities C) events that involve changes in tools, fees, duties, or tariffs D) events that are beyond the supplier's control

A, D

The supply manager must use which of the following to manage and evaluate supply decisions? A) impact assessment B) risk identification and classification C) government duties and tariff requirements D) risk strategy

A. B, D

A car manufacturer wishes to increase their customer focus on new car design, which team is beneficial for them to form to ensure they meet their goals? A) team with customer participation B) team with co-location of supply C) team with supplier participation D) team involving a Supply Council

C

Control charts that monitor production for signs of problems and make needed adjustment are managed under a A) zero defects plan B) quality certification program C) process quality control program D) negotiations program

C

Strategic planning provides organizations a way to A) meet requirements from suppliers B) match organization objectives to the objectives of competitors C) achieve specific long-term goals and objectives for an organization D) reduce long-term goals and focus on short-term objectives

C

Industry sector will influence supply responsibilities; industries can be divided into (multiple answers) A) resale industry B) supplier industry C) process industry D) discrete goods industry

C, D

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Exploiting market opportunities

Competitive-edge

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Reduce the prices of purchased supplies

Cost-reduction

A plan that focuses on "do it right the first time" is known as A) process quality control B) purchasing resources C) quality certification D) zero defects

D

Suppliers and purchasers work to eliminate supply chain interruptions and A) increase the level of inventory needed B) cut investment requirements C) increase large orders or goods D) reduce the level of inventory needed

D

This level of decisions mold the particular department and involve the allocation of internal resources. A) corporate B) relationship C) business unit D) function

D

Which of the following is a significant obstacle supply managers may face when developing an adequate supply strategy? A) ensuring that changes within the supply functions cannot be changed once established B) developing supplier lists that meet quality standards with higher costs C) ensuring the supply strategy is developed without consulting the corporate strategy D) translating organizational objectives into supply objectives

D

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Understand shifts in the environment and regulatory controls

Environmental-change

True or false: Supply chain risks will only occur once at a time, so supply chain managers will be able to focus their recovery efforts.

False

True or false: Most suppliers accept all risk instead of the purchaser

False: Most purchasers would prefer the supplier carries all risk, but in most cases, it is advantageous for both to assume some risk.

True or false: Most suppliers accept all risk instead of the purchaser.

False: Most purchasers would prefer the supplier carries all risk, but in most cases, it is advantageous for both to assume some risk.

True or false: Strategic supply decisions only involve tactical efforts.

False: Strategic supply decisions are concerned with long-term strategical choices for survival and prosperity.

True or false: Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.

False: Supplier participation teams are useful for developing supplier capabilities and improving supplier responsiveness.

Identify each item as either risk avoidance techniques or increased risks to monitor: Regulatory changes that increase price of supplies

Increased risk to monitor

Identify each item as either risk avoidance techniques or increased risks to monitor: Low-cost substitutes that give competitors a competitive edge

Increased risks to monitor

Identify each item as either risk avoidance techniques or increased risks to monitor: Technology advancements that obsolete equipment

Increased risks to monitor

Identify each item as either risk avoidance techniques or increased risks to monitor: Avoiding high-risk suppliers

Risk avoidance techniques

Identify each item as either risk avoidance techniques or increased risks to monitor: Carrying safety stock

Risk avoidance techniques

Identify each item as either risk avoidance techniques or increased risks to monitor: Dual sourcing critical components

Risk avoidance techniques

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Ensuring adequate coverage of business needs

Risk-management

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Better communication between buyers and sellers

Supply chain support

True or false: Administration personnel are responsible for the preparation and routing of formal purchase documents.

True

True or false: How to buy options involve decisions on types of orders such as competitive bids, blanket orders, and open order systems.

True: How to buy goods covers an extensive array of options including technology, ethical decisions, and contracts.

Some quality assurance programs _______________ suppliers with quality requirements and implementation of programs to achieve the desired results.

assist

Under the quality ______________ program, the supplier is depended upon to complete all quality checks, and the incoming inspection can be bypassed.

certification

Changes that happen within an organizations strategy will cause _______________ within the supply strategy.

changes

_____________ buying allows the supplier to maintain inventory inside the buyer's facility

consignment

______________ level decisions answer the questions of what business we are in and how we will allocate resources among the businesses.

corporate

An adequate supply strategy links ________ needs and markets to ___________ needs and markets

current, future

Organizational plans should focus on key ______________ and major ________________ to be successful well into the future.

factors, actions

Supply functions must make a strategic decision as to what ________________ location staff will be located.

geographical

Organizational objectives normally fall into four categories of survival, ________, _________, and __________.

growth, sustainability, financial

A quality certification program is almost always required when implementing a _________________ -____________________ -_____________________ system.

just-in-time

Probability and impact assessments go from _____________ probability and _____________ impact to _____________ probability and ______________ impact

low, low, high, high

Financial risks involve supply interruptions that are directly related to the changes in the _______________ of a good or service.

price

Involving supply and end customers can lead to delivering a great value in the _____________ cycle times.

short

Lack of goal alignment between the _______________ department and the _________________ department can lead to conflicting behaviors.

supply, accounting

Traditionally risks were controlled departmentally, but now they are assessed for ______________ risk exposure to the organization as a whole.

total

Match the supply strategy category to the correct description (assurance-of-supply, cost-reduction, supply chain support, environmental-change, competitive-edge, risk-management) Ensure future needs are met

Assurance-of-supply

A plan that focuses on "do it right the first time" is known as A) purchasing resources B) zero defects C) process quality control D) quality certification

B

Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and A) retail sales purchases B) short product life cycles C) purchases for resale D) long product life cycles

B

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both A) internal and strategic B) internal and external C) individual and group D) major and minor

B

A cost-based strategy will require supply personnel to use the tools of (multiple answers) A) aggressive purchasing B) negotiation C) value analysis D) cost analysis

B, C, D

How to buy goods and services include a vast array of questions around (multiple answers) A) choice of make or buy B) ethical acquisitions C) systems contracts D) technology systems

B, C, D

Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying is (multiple answers) A) what raw materials manufacturing engineering will use for production B) how involved top management will be in acquisitions C) geographic location D) centralized or not

B, C, D

Key trade-offs an organization may face when deciding on pricing strategies are (multiple answers) A) type of raw materials used in production B) standard price in line with the market C) low price for a cost advantage D) premium price for additional benefits D) premium price for additional benefits

B, C, D

The three levels of strategic planning are (multiple answers) A) development B) function C) corporate D) business unit

B, C, D

Where to buy involves decision trade-offs of local, regional, domestic, or _____________ sources

international

The primary reason for supply strategy is to match __________________ goals with __________________ chain goals at the operational and strategic level.

organizational, supply