operations 4

Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing: a. Collaborative planning b. Ethical and sustainable sourcing c. Cloud-based forecasting d. The continuous review system

b. Ethical and sustainable sourcing

Functional Products

MRO items & other commonly low profit margins with relatively stable demands & high levels of competition Examples - equipment maintenance & office cleaning products

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand? a. The Aggregate Production Strategy b. The Chase Production Strategy c. The Level Production Strategy d. Mixed Production Strategy

The Level Production Strategy

Rights and duties

a theory stating that some actions are right in themselves without regard for the consequences

In a recent U.S. retailer survey, _____ of respondents claimed their organizations were either currently enhancing their ethical sourcing capabilities or planned to do so in the future. a. 92% b. 80% c. 75% d. 50%

a. 92%

The Ethical Trading Initiative (ETI) is: a. An alliance of organizations agreeing to implement the ETI Base Code. b. A group of organizations attempting to implement the SCOR model. c. An agreement to remove trade and investment barriers among the U.S., Canada and Mexico. d. The largest and most visible international trade initiative dealing with the global rules of trade between nations.

a. An alliance of organizations agreeing to implement the ETI Base Code.

Environmental supplier certification programs can assist companies by doing which of the following? a. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains b. Helping communities who are in jeopardy of plant closures c. Encouraging distributive negotiations in strategic alliance development d. Identifying companies who are the most popular with consumers

a. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance? a. Lowering inventory turnover rates b. Contributing to new product developments c. Participating in value engineering/value analysis efforts d. Optimizing the supply base

a. Lowering inventory turnover rates

The term "benchmarking" as used in business firms is: a. A system of marking defective inbound inventory so it can quickly be identified for return to the supplier b. A practice where companies attempt to learn and apply the best practices of other companies c. A system of performance metrics that seeks to motivate suppliers to perform better d. A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts

b. A practice where companies attempt to learn and apply the best practices of other companies

Which of the following basic production strategies works best with make-to-order manufacturing firms? a. Capacity Production Strategy b. Chase Production Strategy c. Mixed production Strategy d. Level Production Strategy

b. Chase Production Strategy

According to the text, which of the following is one of the most effective supply chain integrative techniques? a. Counterpurchasing b. Early supplier involvement c. Single integrator solution d. Process integration

b. Early supplier involvement

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered: a. Illegal b. Ethical Sourcing c. Unethical d. Unitarianism

b. Ethical Sourcing

The Amazon Kindle and Tesla's Model S automobile are two examples of: a. Functional products b. Innovative products c. Radio Frequency Identification (RFI) products d. Cyclical products

b. Innovative products

Which strategy uses overtime and subcontracting to cope with the high demand periods? a. The Level Production Strategy b. Mixed Production Strategy c. The Aggregate Production Strategy d. The Chase Production Strategy

b. Mixed Production Strategy

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as: a. Ride sharing b. Waste reduction c. Hedging inventories d. Aggregate planning

b. Waste reduction

The __________ specifies which end product is to be made, how many are required, and when they need to be completed. a. Master production schedule b. Bill of material c. Aggregate production plan d. Super bill of materials

c. Aggregate production plan

Which of the following results from using the chase production strategy? a. Finished goods inventories remain constant b. The workforce fluctuates in response to the demand pattern c. Both "The workforce fluctuates in response to the demand pattern" & "Finished goods inventories remain constant" d. None of these choices are correct.

c. Both "The workforce fluctuates in response to the demand pattern" & "Finished goods inventories remain constant"

One benefit from benchmarking sourcing practices is: a. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community b. Lower prices of goods and services, use of fewer buyers and lower administrative costs c. Firms can learn through others experiences the methods and tools that work the best d. Larger market for products, economies of scale in purchasing and production, and lower labor costs

c. Firms can learn through others experiences the methods and tools that work the best

In a bill of materials, items at which level are independent demand items? a. Level 2 b. Level 3 c. Level 0 d. Level 1

c. Level 0

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical? a. Critical quality and corruption framework b. Supplier involvement and environmental performance c. Utilitarianism and rights & duties d. General Agreement on Tariffs & Trade (GATT) and leverage purchasing

c. Utilitarianism and rights & duties

Which of the following can be a result of successful strategic supplier alliances? a. Better market penetration b. Higher return on investment c. Access to new technologies and knowledge d. All of these choices are correct.

d. All of these choices are correct

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Expand focus to include other departments and customers. b. Establish corporate ethical and sustainable sourcing policies. c. Prioritize items based on ethical and sustainability opportunities and ease of implementation. d. Compare supplier prices based on the lowest cost bid

d. Compare supplier prices based on the lowest cost bid.

Firms assess their sourcing capabilities because: a. Doing the right social and environmental things make economic sense b. It allows them to maintain a variety of product options c. They need to know the effect of external elements d. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

d. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade? a. Move towards a low carbon economy b. Work within the finite limits of the planet's resources c. Respect human rights and reduce poverty by creating profitable trading d. Procurement rationalization Hide Feedback

d. Procurement rationalization

Which of the following is NOT a step used in maintaining a successful strategic alliance program? a. Provide continuous evaluation of alliance performance, visibility and support b. Facilitate the dissemination of information c. Reward suppliers as performance merits d. Supplier managing inventory at customers' site

d. Supplier managing inventory at customers' site

Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past? a. The ban on Muslim people from a select group of countries b. Volkswagen Group installing a secret device in cars that allows them to cheat on emissions tests c. Donald Trump being elected President of the U.S. d. The British vote to exit the EU

d. The British vote to exit the EU

An important measurement used in supply base rationalization initiatives would include which of the following? a. The number of employees at the supplier b. The number of trucks owned by the supplier c. The number of second-tier suppliers used by the supplier deliveries d. The suppliers' greenhouse gas emissions

d. The suppliers' greenhouse gas emissions

Which of the following terms refers to an act that creates the greatest good for the greatest number of people? a. Corporate responsibility b. Multinational c. Social sustainability d. Utilitarianism

d. Utilitarianism

Ethical Sourcing

is that which attempts to take into account the public consequences of organizational buying or bring about positive social change through organizational buying behavior

Corporate Social Responsibility

is the practice of business ethics

Fair trade product

manufactured or grown by a disadvantaged producer in a developing country that receives a fair price for their goods

Business Ethics

the application of ethical principles to business situations