SCM

A zero defects quality strategy emphasizes:

"do it right the first time."

Three major challenges facing supply executives when setting supply strategies and objectives 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?

In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues?

50 to 80

A successful supply chain management strategy integrates:

processes and systems within and across organizations.

The return on assets effect (ROA) quantifies and measures:

the impact of supply actions on inventory and the balance sheet

The use of the concepts of purchasing, procurement, supply, and supply chain management will vary from organization to organization depending on:

the organization's stage of development and/or sophistication, the industry in which they operate and the organization's competitive position.

Supply can influence risk management in which area(s)?

financial, operational and reputation

When a supply-related risk exists, the supply management team should:

identify and classify risks, assess possible impact, develop a mitigation strategy, inform the chief supply officer, await instructions, and implement the directive.

Evidence of the growth and influence of supply management in an organization includes:

involvement in strategic planning and executive status of the chief supply officer.

The question: "How can supply and the supply chain contribute effectively to organizational objectives and strategy?" is a key question in:

strategic supply management.

Normally, most organizational objectives can be summarized as:

survival, growth, financial, and sustainability.

For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in an increase in profit of:

75%

The ratio of total purchases to sales (the percentage of dollars paid out to suppliers as a percentage of sales) varies little from industry to industry.

FALSE

A systems approach to managing the flow of information, materials, and services from tiers of suppliers through the buying organization to tiers of customers is:

Supply Chain Management

Some operational risks in a supply chain are beyond the control of the purchaser or supplier, and some are within their control.

TRUE

Sustainability performance includes the impact of the organization's supply chain on the natural environment, and the social practices of the firm and its suppliers.

TRUE

The key decisions and plans in corporate strategy address: What business are we in and how will we allocate resources among these businesses?

TRUE

A strategy is:

an action plan to achieve specific long-term goals and objectives.

Linking current and future needs with current and future markets is the primary focus of:

an effective supply strategy.

Supply strategies that are based on changes in demand and supply are known as:

assurance-of-supply strategies.

Interest in the supply function as a managerial activity began:

during World Wars I and II because of global materials shortages.

Supply strategies that are designed to anticipate and recognize shifts in the economy, organization, people, legal, government regulations and controls, and technologies are:

environmental change strategies.

Which one of the following is NOT one of the six major supply strategy areas:

new-product development strategies.

The supply area is a good training ground for managers because it provides exposure to:

pressure of decision making under uncertainty and various levels and functions in the organization.

Supply has the potential to contribute to:

profitability, competitive position and sustainability performance.

The design and management of seamless, value-added processes across organizational boundaries to meet the needs of the end customer is called:

supply chain management.

Strategies designed to make available the knowledge and capabilities of supply chain members to others in the buying organization are called:

supply-chain-support strategies.

When developing strategies related to "how to buy," decisions must be made about:

systems and processes.

Company image may be directly influenced by:

treating suppliers in a fair and equitable manner, complying with regulatory requirements and sustainability practices of suppliers.

When developing supply strategies, the supply manager must determine:

what to make or buy, when to buy, how much to buy and how it should be ordered.